Scallop on Sui

Scallop is the pioneering Next Generation peer-to-peer Money Market for the Sui ecosystem and is also the first DeFi protocol to receive an official grant from the Sui Foundation. By emphasizing institutional-grade quality, enhanced composability, and robust security, they're dedicated to building a dynamic money market that offers high-interest lending, low-fee borrowing, AMM, and digital asset self-administration tool on a unified platform and offering an SDK for professional traders.
Scallop has confirmed to launch the SCA token and do an airdrop for early users. Users who do lending and borrowing on the platform will get free SCA tokens when the tokens go live.

Scallop is the Next Generation Money Market
which emphasizes institutional-grade quality, enhanced composability, and robust security.



If you have enough information and want to start to use scallop soon. Follow step by step guide then you can read the next part of the article.

Step-by-Step Guide:

1. Visit the Scallop website.
2. Connect your Sui wallet.
3. You will need some SUI and/or other tokens.
4. Go to lending and supply tokens.
5. Also, try borrowing some tokens by providing collateral.

They’ve confirmed the launch of the SCA token and have confirmed to airdrop it to early lenders and borrowers.

What is Sui?
Sui is a Layer 1 blockchain, aiming to provide creators and developers with an easier-to-build experience for the next billion Web3 users. Sui is a decentralized proof-of-stake blockchain with horizontally scalable throughput and storage, allowing high-speed and low-cost application development. Sui's growth company is Mysten Labs, which was co-founded by several employees from the Facebook (later renamed Meta) Novi research team. Sui is not a derivative of the Diem network, nor is it an incremental improvement, but a functional advancement based on blockchain technology to meet the needs of the next generation of cryptocurrency users and developers. Sui aims to become the first Internet-scale programmable blockchain platform by introducing innovative underlying technologies.

The Sui protocol has the following main features:

Scalability and instant settlement: Sui supports horizontally scalable processing and storage for high-throughput and low-latency transaction settlement.

Secure smart contract language: Sui provides a secure smart contract language for developers to define rich and composable on-chain assets for a better user experience.

Narwhal and Bullshark DAG memory pool and efficient Byzantine fault-tolerant consensus: Sui uses Narwhal and Bullshark DAG as a memory pool and efficient Byzantine fault-tolerant consensus mechanism to ensure the reliability and consistency of transactions.

Causal order and total order enable massively parallel execution: Sui's causal order and total order mechanism allow the execution of many transactions in massive parallel, reducing latency and increasing throughput.

Object-based data model and Move programming language: Sui's data model is object-centric and utilizes the object-based Move programming language, enabling composable objects and non-fungible tokens (NFTs). This simplifies the developer experience.

Sui Wallet

These are the Scallop recommended Sui wallets:

• Sui Wallet
• Martian
• Ethos
• Elli
• Suiet
• OKX
• Bitget

1.Install a wallet you like.
2.Create a password. (This password is for this browser, in case bad guys steal your tokens by stealing your laptop or use it without asking, etc.)
3.Save your mnemonic. Do not let anybody know your mnemonic, save it safely. (Best Ways to Store Your Mnemonic Passphrase and How)
4.You can copy your Sui address and send your Sui to your wallet!

After you send your SUI to your Sui wallet, you can start becoming a Scalloper.

Bridge Assets to Sui (Not Mandatory)

To acquire Tokens on the Sui Network via a cross-chain transfer, you can utilize the Wormhole Connect. Wormhole is a multi-chain messaging protocol capable of connecting to several chains, such as Ethereum, Solana, Terra, Binance Smart Chain, Polygon, Sui, Avalanche, and Oasis.
Here's an easy-to-follow guide to get you started:

• Navigate to the Bridge section at Scallop or head to the Wormhole Connect page.
• Determine the blockchain from which you wish to transfer assets, then select SUI Network as the target. At this point, link your Metamask Wallet.
• Choose the token type to be transferred (WBTC, WETH, USDC or USDT) and indicate the quantity.
• Lastly, link your Sui wallet, cover the gas costs on Sui, and approve the transactions for both sending and claiming.

Lending

In the world of decentralized finance (DeFi), there are numerous avenues to earn additional token rewards by participating in various third party protocols, and one such avenue involves participating as a lender in a lending-borrowing protocol. When you lend your coins to borrowers, they are obligated to pay interest on the borrowed amount. As a lender, you receive this interest as a reward for providing your funds to borrowers.

Asset Pools

Asset Pools suppliers can earn interest through deposits and can withdraw assets at any time. Assets in Asset Pools will be borrowed by borrowers who already deposited enough collateral assets as collateral, and they will also count the interest with time going.

sCoins (Scallop Market Coins)

Similarly to Compound collateral tokens, Scallop also tokenizes debts on the protocol known as sCoins (Scallop Market Coins). sCoins also have an ever-growing value, it's proof that you deposited some coins to the assets pools and allow claiming of deposited assets. The Market Coins allow the construction of positions without needing to interact with underlying assets and can be used to create derivative products that include debt obligations.
It is important to reiterate that "pools" and "sCoins" simply comprise autonomous blockchain-based smart contracts deployed on the relevant blockchain network, operated directly by users calling functions on it (which allows them to interact with other users and/or engage in trading or other activities in a multi-party peer-to-peer manner). There is no further control by or interaction with the original entity which had deployed the smart contract, which entity solely functions as a provider of technical tools for users, and is not offering any sort of securities product or regulated service nor does it hold any user assets on custody.

What is sCoin?

Scallop is a decentralized financial money market that allows users to lend and borrow various cryptocurrencies. When users make a supply in Scallop lending pools, they receive sCoin that represents supplies (e.g. sSUI for SUI supplies, sUSDC for USDC supplies).
The main functions of these sCoin are:

• Interest-bearing: sCoin value will increase over time, reflecting the interest earned on deposits.
• Exchange Rate: The relationship between sCoin and its underlying assets is determined by the exchange rate. This is a value indicating how many underlying assets sCoin can be exchanged for. This exchange rate will grow over time as the interest earned on the deposit is added back to the underlying asset.

The price calculation of sCoin is based on the price of its underlying asset. The following are the basic concepts of sCoin price calculation:
When you deposit to Scallop for the first time, the amount of sCoin you will get depends on the current exchange rate. But over time, the exchange rate rises due to the accumulation of interest. For example, if the exchange rate of sSUI increases to 1.03, it means that each sSUI now represents more SUI.
For example, if the price of 1 SUI is $1 USD, and the exchange rate of sSUI is 1.03, then the price of sSUI will be: sSUI price = 1*1.03 = $1.03
It is important to understand that the price of a sCoin is correlated to the price of the underlying asset and that the exchange rate will rise over time and accrue interest. Therefore, holding sCoin not only represents the ownership of the underlying assets but also represents the interest earned.
You will be able to view the types and amount of sCoin you have on Scallop’s dApp.

Borrowing

Scallop offers the flexibility for every user's Sui address to access up to 5 sub-accounts, including the primary account. This enables users to efficiently self-administer multiple positions concurrently. Once a user holds "Scallop Obligation Key", they can deposit into any sub-account without the need for repetitive approvals. Furthermore, no approvals are necessary to transfer assets and liabilities between sub-accounts, empowering users to easily isolate and segregate their collateral and debts according to their preferences. They calculate your collateral and your debt inside an object called Obligation. To mutate this object you will need an object called Obligation Key, each Obligation Key belongs to an Obligation object. So when you create an Obligation object for the first time, you will get Obligation Key in return and it will be stored inside your address. This Obligation Key is just like an NFT, it represents ownership and it’s transferable. Transferring your Obligation Key to the other address means you hand over your ownership of the Obligation to someone else.

Finally, The multi-oracle consensus algorithm they designed allows Scallop to obtain price feeds through a multi-oracle system. In the event of detecting an unhealthy asset portfolio, Scallop can accurately and promptly identify liquidation events. The integration of our permissionless liquidation system with DeepBook, Cetus, Turbos, and Umi Protocol offers seamless compatibility.
As your Risk Level approaches 100%, your account becomes susceptible to potential liquidation. The Liquidation Threshold represented is determined by specific token parameters. They calculate the liquidation threshold by considering the weighted average of all the assets you have deposited.

You can kindly connect me on comment section if you want any support about airdrops. You can also request a new topics to text on BULB. I would like to explain Airdrops you want.

Thank you for reading.
Lets meet on the comment section.
Best wishes.