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The 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 locked (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 Firm to Crack the US Regulatory Code
From Solana to Sui: A Strategic Pivot
Scallop was founded in 2021 by Kris Lai and Donnie Chen, initially built for Solana before pivoting 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, includes 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 execute multiple operations in one transaction, lowering gas costs and improving efficiency. Scallop also introduced Scallop Tools, a user interface that lets developers create custom PTBs directly on the platform.
Strong Backing and Institutional Support
Scallop has attracted investment from major firms, 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 strengthened in October 2024 when Scallop secured a strategic investment from the foundation to expand its DeFi offerings and enhance ecosystem adoption.
Long-Term Confidence Reflected in Token Locking
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 set aside for liquidity mining, investors, and team contributors.
As of October, over 50 million SCA tokens, representing 20% of the total supply and 40% of the circulating supply, are locked in the protocol. The average lock-up duration is 3.7 years, underscoring long-term holder confidence.
Users who lock tokens receive vote-escrow SCA (veSCA), unlocking governance rights, boosted rewards, and a share of platform revenue.
“We’re in a down market, but our users are still locking up 20% of supply for almost four years,” said Kris Lai, CEO of Scallop. “That’s not speculation. That’s conviction.”
Related: Institutions, DeFi, and a $450M Corporate Treasury Bet: Sui Bull Case Keeps Building
Notably, Scallop reached a peak TVL of $195 million in late 2024 and continues to maintain liquidity near that level. Its veSCA model has helped drive user engagement and protocol stability by aligning incentives with long-term participation.
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