Scallop, a DeFi protocol has announced plans to temporarily suspend its Scallop Swap to address issues with its partners’ RPC and Swap Router.
A financing approach within the Sui ecosystem Scallop revealed its plans to improve the protocol. The project has announced on the social networking site X that it will temporarily suspend Scallop Swap to address issues with its partners’ RPC and Swap Router. We will announce the resume of Scallop Swap operations at a later time.
Today, they also announced changes to its pool settings. The collateral weight will be reduced from 50% to over 45%, and the liquidation threshold will be adjusted from 80% to over 65%.
Scallop serves as a peer-to-peer (P2P) money market in the Sui ecosystem and represents a decentralized finance (DeFi) protocol that the Sui Foundation supports.
The package includes all features such as lending and borrowing pools, Scallop Swap & Bridge, lending derivatives, SDKs, Flash loans, Sui Derivatives, Sui PTB development tools, and more. Their current total locked value is $135 million, according to DefiLlama data.
Layer 1 decentralized PoS networks like Sui’s provide horizontally scalable storage and throughput, making it possible to build applications quickly and cheaply.
Scallop has achieved a total borrowing and lending volume of over $25 billion as it advances with enhanced protocol parameters
To handle increased borrowing, the project went through a number of changes and improvements in April, the most notable of which was increasing the protocol parameters for various pools of collateral assets. We increased the amounts for Sui, USDC, and USDT from 30 million to 100 million, for afSUI from 10 million to 20 million, and for haSUI from 5 million to 20 million.
They recently highlighted more than $2 billion in flash loan volume and more than $25 billion in total lending and borrowing volume, among other significant achievements. With an average utilization rate of over 60% for borrow pools, the total borrow amount also increased from $20 million to $50 million.