Decentralized finance (DeFi) protocol Scallop (SCA) has emerged as one of the leading projects on the Sui blockchain, according to a recent report from crypto research firm Messari.
The platform has surpassed $102.1 million in total value (TVL) and generated $6 million in cumulative revenue as of September 2025. Messari’s analysis places Scallop among the most influential DeFi applications on Sui, citing its growing liquidity, robust governance structure and strong user participation.
Related: Scallop is the latest international crypto company to crack US regulations
From Solana to Sui: a strategic turn
Founded in 2021 by Kris Lai and Donnie Chen, Scallop initially built for Solana before moving to Sui to leverage its low latency and scalability. The decision positioned Scallop as an early adopter in Sui’s DeFi ecosystem. The team, spread across the Asia-Pacific region, consists of professionals with experience in DeFi, cybersecurity and quantitative trading.
The protocol’s migration to Sui allowed it to take advantage of the network’s Programmable Transaction Blocks (PTBs), which can perform multiple operations in a single transaction, reducing gas costs and improving efficiency. Scallop also introduced Scallop Tools, a user interface that allows developers to create custom PTBs directly on the platform.
Strong support and institutional support
Scallop has attracted investment from major companies including CMS Holdings, 6th Man Ventures, DWF Labs and UOB Venture Management. Angel investors such as Dingaling, Pentoshi and Mario Nawfal also participated in early funding rounds.
The project maintains a close relationship with Sui Foundation and Mysten Labs, the developers behind the Sui blockchain. In January 2023, Scallop became the first DeFi protocol to receive a grant from the Sui Foundation.
This partnership was strengthened in October 2024 when Scallop secured a strategic investment from the foundation to expand its DeFi offering and improve ecosystem adoption.
Long-term trust reflected in token lock
Scallop’s native token, SCA, serves as both a utility and governance asset within the ecosystem. It has a total supply of 250 million tokens, with allocations reserved for liquidity miners, investors and team contributors.
As of October, more than 50 million SCA tokens, representing 20% of the total supply and 40% of the circulating supply, have been committed to the protocol. The average duration of the lock-up is 3.7 years, which underlines the long-term confidence of shareholders.
Users who lock tokens receive vote-escrow SCA (veSCA), which unlocks governance rights, increased rewards, and a share of the platform revenue.
“We are in a down market, but our users are still holding 20% of the supply for almost four years,” said Kris Lai, CEO of Scallop. “That’s not speculation. That’s belief.”
Related: Institutions, DeFi and a $450 million bet on government bonds: the Sui Bull case continues to grow
Notably, Scallop reached a TVL peak of $195 million at the end of 2024 and continues to maintain liquidity around that level. The veSCA model has helped increase user engagement and protocol stability by aligning incentives with long-term participation.
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