- Borrowing-Centric Incentive Model
- How Does Scallop Differ From Other DeFi Protocols?
- Scallop's Stellar Growth
Scallop is a DeFi protocol on the Sui Blockchain providing users with seamless crypto lending and borrowing, as well as an easy-to-use token swap feature. Since launching the mainnet, Scallop has been driving change in how money markets operate across decentralized finance, pioneering new models and architectures.
Borrowing-Centric Incentive Model
The Borrowing-Centric Incentive Model by Scallop is an innovative approach designed to encourage borrowing activity within the Scallop DeFi ecosystem and the overall SUI ecosystem. Unlike traditional models that primarily reward users for supplying or locking up assets, Scallop’s model focuses on incentivizing users to borrow assets, which reduces idle assets and increases liquidity flow in the market.
How Does Scallop Differ From Other DeFi Protocols?
A unique aspect of Scallop is the separation it maintains between lending and collateral pools. This approach, combined with incentives for borrowing, ensures benefits for both lenders and borrowers. Scallop’s interest rate model functions in three stages, each triggered by different levels of capital utilization, ultimately providing greater returns for lenders as borrowing rates climb.
Scallop's Stellar Growth
Scallop has recorded exponential growth since the start of 2024. As of January 3, its total value locked (TVL) was $34 million. Today at press time, Scallop’s TVL has once again shot over $110 million. This growth indicates a significant rise compared to last year’s September TVL when it was below $4 million. Additionally, Scallop’s swap volume has surpassed $20 million due to their recent UI upgrade and swap event.
Scallop aims to redefine the standards of borrowing, lending, and staking on decentralized finance platforms, focusing on improved user experience and security. Through reinventing borrowing and lending in the crypto space, Scallop hopes to set the standards for money markets across all blockchains.
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