Scallop

What Scallop does

Scallop is a decentralized finance (DeFi) lending protocol built on the Sui blockchain, founded in 2021 and operated by Scallop Protocol. It positions itself as a next-generation money market and serves cryptocurrency holders who want to earn yield on deposits or access liquidity through collateralized borrowing without selling their positions. The protocol is based on the architectural foundations of Compound V3 and Solend V2, adapted for Sui's Move programming environment, and differentiates through a Trilinear Interest Rate Model, a Collateral Segregation Model, a Soft Liquidation mechanism, dynamic Collateral/Borrow weights, sCoins (interest-bearing lending derivatives), zero-fee flashloans, and a veSCA governance token model. Security is a stated focus: the Lend smart contracts have undergone formal verification by Asymptotic, additional audits by Zellic, OtterSec, and MoveBit, and the protocol runs a bug bounty offering up to 20% of potential loss.

Scallop's product surface spans the core Scallop Protocol, sCoins, the Flashloan primitive, and a developer toolchain (Scallop SDK in TypeScript, Scallop Tools for building programmable transaction blocks, and Sui Kit). Distribution is global and self-serve via app.scallop.io, with token-level liquidity on 18+ centralized exchanges (Binance, Kraken, Bybit, KuCoin, Gate.io, HTX, Bitget, and others) and wallet-level access via the OKX Wallet integration. Price feeds are sourced from Pyth Network's X-Oracle.

The revenue model is built on the spread between lending rates paid by borrowers and yields distributed to depositors, with the Trilinear Interest Rate Model adjusting rates by utilization zone to capture capital-efficiency margins. The $SCA token and veSCA model layer in governance and staking-based economics. The customer base is a single horizontal "DeFi Users" persona served through product-led growth, with no named enterprise customers. To date the company has disclosed a single Q1 2024 strategic investment round of approximately $3M, co-led by CMS Holdings and 6th Man Ventures with broad crypto-native participation, and operates with 11-50 employees.

Name

Scallop

Legal name

Scallop Protocol

Website

https://scallop.io

Company type

Private

Founded year

2021

Operating status

Operating

Headcount range

11–50 employees

Short description

Scallop is a decentralized DeFi lending and borrowing protocol built on the Sui blockchain, serving crypto holders who want to earn yield on deposits or borrow against collateral. It operates as a self-serve money market with formal-verified smart contracts, zero-fee flashloans, and a veSCA governance token.

Ownership category

akta.pro rank

Product category

Decentralized Lending Protocol

NAICS

Securities, Commodity Contracts, and Other Financial Investments and Related Activities (523)

SIC

Finance Services (6199), Security & Commodity Brokers, Dealers, Exchanges & Services (6200)

akta.pro primary industry

Decentralized Lending Protocols (DeFi Money Markets) (FSADAFAB)

akta.pro secondary industries

Crypto Borrowing & Margin Credit Facilities (FSADAFAC), Lending Protocol Infrastructure (Oracles, Rate Models, Vaults) (FSADAFAN)

Keywords

• Decentralized lending
• Money market protocol
• Defi borrowing
• Lending derivatives
• Flashloan protocol

GTM type

B2C

Offering type

Software

Cost components

Technology or R&D, Personnel, Infrastructure, Marketing or Sales, Operations

Revenue model

1. Interest Spread: Scallop earns revenue through the spread between lending rates paid by borrowers and yields earned by depositors. The protocol acts as an automated market maker for capital, capturing the difference in interest rates across utilization levels.
2. SCA Token Economics: The native $SCA token may generate value through staking rewards via the veSCA model, governance participation, and potential protocol fees distributed to token holders.

Pricing tiers

Go-to-market motion1 record

Distribution channels1 record

Marketing channels3 records

Core offering

Scallop is a decentralized lending and borrowing money market protocol built on the Sui blockchain. Users can deposit crypto assets to earn yield, borrow against collateralized positions, and access zero-fee flashloans. The protocol acts as an automated market maker for capital, capturing the spread between lending and borrowing rates, and is governed through the native $SCA token via the veSCA staking and voting model.

Product overview

Scallop is a next-generation DeFi money market protocol built on the Sui blockchain, offering institutional-grade lending and borrowing services. The core product portfolio includes the Scallop Protocol (main lending platform), sCoins (lending derivatives), Flashloan (zero-fee flash loans), and a suite of developer tools including Scallop Tools (UI for programmable transactions), Scallop SDK (TypeScript SDK), and Sui Kit (Sui interaction toolkit).

Differentiator

Problem solved

Functional benefit

Products and services

• Scallop Protocol

Quantifiable outcome

• Formal verification completed for Scallop Lend smart contracts
• +1 more outcomes

Segments1 record

Ideal customer profiles2 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration1 record

Feature10 records

Partnerships

Six partnerships are on record, tiered security audit partner, core security partner, infrastructure partner and integration partner.

• Zellicsecurity audit partnerOthersSecurity audit partner providing third-party security review of Scallop smart contracts
• Ottersecsecurity audit partnerOthersSecurity audit partner providing third-party security review of Scallop smart contracts
• MoveBitsecurity audit partnerOthersSecurity audit partner providing third-party security review of Scallop smart contracts
• Asymptoticcore security partnerOthersCompleted full formal verification of Scallop Lend and conducted security audits. Asymptotic performed comprehensive formal verification of smart contract logic.
• Pyth Networkinfrastructure partnerTechnology or IntegrationPyth Network provides price oracle data for X-Oracle system powering Scallop's price feeds
• OKX Walletintegration partnerTechnology or IntegrationOKX Wallet integrated with Scallop, providing OKX users access to assets like SUI, USDC and offering extra yield for a limited time

Scale indicators2 records

Recent moves6 records

Expansion highlights6 records

Direct peers

• Compound: Compound is one of the foundational DeFi lending protocols and is explicitly cited as an architectural inspiration for Scallop (Compound V3). Both protocols pool assets, set algorithmic interest rates based on utilization, and issue cToken/sCoin equivalents.
• Aave: Aave is the largest decentralized lending/borrowing protocol in DeFi, operating across multiple chains. It is a direct peer to Scallop because both offer money-market lending pools with variable rates, collateralized borrowing, and algorithmic interest rate curves.
• Solend: Solend is the dominant lending protocol on Solana and is cited as the second architectural foundation (Solend V2) for Scallop. Both target high-throughput L1s with money-market designs tailored to their respective chains.
• JustLend: JustLend is the primary lending protocol on TRON, offering similar supply/borrow pools with algorithmic interest rates. It competes in the same DeFi money-market category but on a different chain.
• Morpho (Sui) / Suilend: Suilend is a lending protocol native to the Sui blockchain competing directly with Scallop for Sui DeFi deposits and borrowers, using comparable Move-based money market architecture.
• NAVI Protocol: NAVI is a leading native lending protocol on the Sui blockchain, directly competing with Scallop for the same Sui DeFi liquidity, depositors, and borrowers using the Move language.
• Venus Protocol: Venus is the dominant lending and synthetic stablecoin protocol on BNB Chain. It is a direct peer offering pooled money markets with collateralized borrowing on an alt-L1.

Emerging players

• Silo Finance: Silo Finance is an emerging cross-chain lending protocol that isolates risk between markets. It shares Scallop's design philosophy of risk-isolated lending markets and is comparable on that architectural dimension.
• Morpho: Morpho is an emerging DeFi lending optimizer that sits atop protocols like Aave and Compound to provide peer-to-peer matching with improved rates. It is comparable as it competes for the same sophisticated DeFi lenders/borrowers.

Broad incumbents

• MakerDAO: MakerDAO is the original DeFi lending protocol (DAI stablecoin issuance via collateralized debt positions). It is comparable as a broad DeFi credit platform but uses CDP architecture rather than pooled money markets.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/Scallop_io

Compliance5 records

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds1 record

Investors23 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments1 record

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Scallop