Scallop, a leading decentralized finance (DeFi) lending protocol operating on the Sui blockchain, recently achieved a significant milestone. According to data from DeFiLlama, the platform generated $79,920 in revenue within a single 24-hour period. This result places Scallop second among all DeFi lending platforms globally, trailing only the established industry leader, Aave.
This record underscores Scallop’s growing influence within the Sui ecosystem and the broader DeFi market. It highlights how emerging blockchain platforms can foster innovation and support competitive financial applications.
The Rise of the Sui Blockchain
Sui is a high-performance Layer 1 blockchain that launched in May 2023. It was designed to support scalable and efficient decentralized applications through its unique object-centric data model and the Move programming language.
Key advantages of Sui include:
- Low transaction fees
- High network throughput
- Strong security guarantees
- Parallel transaction processing
- Instant finality
These technical benefits have attracted both developers and users, contributing to rapid ecosystem growth. In early 2025, the total value locked (TVL) across all Sui-based DeFi projects surpassed $2 billion.
The Sui Foundation has actively supported this growth by providing grants and resources to promising projects. Scallop was the first DeFi protocol to receive an official grant from the Foundation, signaling strong institutional confidence in its potential.
Scallop Protocol: Leading Sui’s DeFi Lending Market
Scallop Lend is a peer-to-peer money market protocol that allows users to lend and borrow digital assets. It has established itself as the top lending platform on the Sui network, with a TVL of approximately $130.27 million—reflecting a 34% increase over a recent seven-day period.
Other key metrics include:
- Total deposits and collateral: $187 million
- Cumulative revenue: $3.94 million
- Over 27 million SCA tokens locked by the community
Scallop uses a vote-escrow (ve) model to incentivize user participation. Those who stake the native SCA token can access higher borrowing limits and improved yield rewards. The average staking duration is 3.72 years, indicating strong long-term commitment from users.
The platform also emphasizes security and user experience by separating lent assets from collateral. This design reduces systemic risk and improves operational resilience.
Recent developments include the listing of the Walrus token and a partnership with Binance Wallet for a yield-focused campaign. These moves aim to diversify the ecosystem and provide added value to users.
Scallop’s Position in the Global DeFi Landscape
Scallop’s recent revenue achievement positions it as a major player in the global DeFi lending sector. While Aave remains the market leader, Scallop demonstrates how newer protocols can leverage advanced blockchain infrastructure to compete effectively.
The protocol benefits from Sui’s technical capabilities, which enable fast and low-cost transactions. Its open-source framework has also encouraged other projects to build on top of its infrastructure, amplifying its ecosystem impact.
As the Sui network continues to expand, Scallop is well-positioned to maintain its leadership in decentralized lending. Its combination of community support, technical innovation, and strategic partnerships provides a solid foundation for future growth.
For those interested in exploring advanced DeFi strategies, Scallop offers a range of tools and services. You can discover more about leveraged yield opportunities directly through its platform.
Frequently Asked Questions
What is Scallop Protocol?
Scallop is a decentralized money market protocol built on the Sui blockchain. It allows users to lend, borrow, and earn interest on digital assets in a secure and efficient manner.
How does Scallop generate revenue?
The protocol earns revenue through borrowing interest fees and transaction mechanisms. A portion of this revenue is distributed to stakers of the native SCA token.
What makes Sui blockchain suitable for DeFi?
Sui offers high throughput, low latency, and low transaction costs. Its object-oriented architecture and parallel processing capabilities make it ideal for high-performance DeFi applications like Scallop.
Is Scallop available only on Sui?
Currently, Scallop operates primarily on the Sui blockchain. Its design leverages Sui’s technical features to provide a seamless user experience.
How can users increase their yields on Scallop?
Users can stake SCA tokens to access boosted rewards and borrowing power. Participating in liquidity campaigns and ecosystem partnerships can also enhance earning potential.
What are the risks of using DeFi lending protocols?
Like all DeFi platforms, Scallop involves risks such as smart contract vulnerabilities, market volatility, and liquidity fluctuations. Users should assess their risk tolerance and conduct due diligence before participating.
Scallop’s success illustrates the potential of next-generation blockchains like Sui to host high-performing DeFi applications. With continued innovation and adoption, protocols like Scallop are paving the way for a more accessible and efficient financial ecosystem.
For those looking to engage with cutting-edge DeFi platforms, learn more about integrating with money market protocols and explore the tools available for advanced users.