CoinVoice： Please introduce yourself and Scallop

Kriss：Hi everyone, I am Kriss, the founder of Scallop, I started my career as a full stack developer and later transitioned to a network security engineer, I completed EC-Council's Certified Ethical Hacker program and started building DeFi products in 2021, I have led teams in many hackathons and CTF challenges and have placed well in many of them.

I have about six years of experience in cryptocurrencies, started mining on Ether in 2017, and founded Scallop Pools in early 2021, a verifiable random interest rate machine based on Solana's zero-knowledge provable random and on-chain lending protocols. In 2022, we extended Scallop to Sui.

Scallop is the Sui ecosystem's groundbreaking next-generation money marketplace and the first DeFi protocol to receive official funding from the Sui Foundation. By emphasizing institutional-grade quality, enhanced composability, and strong security, we are committed to building a dynamic money marketplace that offers tools with features such as high-rate lending, low-fee borrowing, zero-fee flash lending, AMM, and Sui programmable trading blocks on a unified platform with an SDK available to professional traders.

CoinVoice：What are the advantages of Scallop over some of the other lending protocols on Sui?

Kriss：Scallop offers a full-featured SDK powered by Sui's unique feature, the Programmable Trading Block. With just a few lines of code, traders can implement custom trades, such as using Scallop's free lightning lending and integrating Cetus/Turbos to initiate custom arbitrage trades.

Scallop V1's model is also among the leading models in the industry with optimized clearing and risk control modules based on the Compound V3, Euler and Solend V2 models. In contrast, our competitors are still using the Compound V2 model, and Scallop's advantages include collateral/borrowing weights, protected collateral pools, debit/outflow/collateral limits, multiple predictor algorithms, TWAP predictors, model update latency, and soft clearing, among others.

Our team has the best security practices in place and also goes through rigorous audits to ensure the security of our platform. The entire Scallop protocol is designed with zero trust. In addition, our team has a deep background and experience in security.

CoinVoice：Your team has deployed similar products on Solana before, what motivated you to enter the Move ecosystem?

Kriss：First, having previously developed on Solana, our team has a strong background in Rust smart contract programming, which makes Sui Move's Rust-based infrastructure a good fit for us.

Secondly, Sui has many technical innovations and advantages, including an impressive Byzantine fault-tolerant algorithm that includes simple transactions without waiting for global consensus, an innovative approach that caught our attention; Sui Move's on-chain data storage structure, called Object structure, is very efficient; unlike most EVM L1s that tend to stack data in a single address, Sui's approach is more organized and easier to manage. In addition, Sui Move is an excellent framework for smart contract development. It has the security and efficiency of lower-order languages like Rust, with the readability and clean coding of higher-order languages. Coupled with Object Structure and Programmable Transactions, it gives other frameworks using Diem Move a run for their money, and Sui Move is even more innovative and unique. After we did a thorough research, we started to arrange the implementation of Scallop on the Sui Network.

Given these technical considerations, Sui was a perfect fit for DeFi product development. In fact, one of our core features, Free Lightning Loans, was built using Sui's shared objects and programmable transactions. Therefore, we believe Sui provides us with the ideal platform to innovate and provide the best service to our users.

CoinVoice：Did you encounter any major difficulties during the migration to Move Eco and how did the team overcome them?

Kriss：The challenges we faced were divided into two main areas: development and marketing.

In terms of development, the main difficulties stemmed from common problems in the initial ecosystem, such as extremely frequent updates to officially provided tools, source code, and packages, or the fact that there is no official open source version of some necessary tools yet, such as tools for deploying smart contracts to the blockchain. The solution to these problems is for the team to go all out while developing some tools for other project partners in the ecosystem to use or optimize, and for everyone to help each other and save time.

On the market side, the main problem is that not many people understand Sui now, and investors or large institutions have questioned the future of this ecosystem after seeing the price performance in exchange, and may think it is just another new L1 that lacks highlights. but from our developers' point of view, Sui's technical strength and innovation are among the very best in the industry, and we believe that one day people will generally understand it. This problem can only be solved by time and active promotion.

CoinVoice： Outside of Sui ecosystem, there are already leading projects like AAVE and Compound in the field of lending protocols, what is Scallop's differentiation path?

Kriss：Scallop's differentiation path in the lending protocol area is mainly in the following areas:

Optimized model: Scallop has been designed with an optimized model to provide more efficient and stable lending services to differentiate itself from existing projects like AAVE and Compound.

TWAP Predictor and Multi-Predictor Strategy: The predictor is a very important aspect of the DeFi project, providing reliable, external price information for smart contracts. Scallop uses the TWAP predictor as well as a multi-predictor strategy, which is designed to better resist price manipulation and thus enhance the security of the platform.

Free Lightning Loans: Scallop offers free lightning loans as a key differentiating feature compared to other lending protocols.

Sui-based: Sui is a blockchain infrastructure with high speed, cheapness, high composability and high security. scallop is built on Sui, which makes it advantageous in terms of speed, cost, composability and security.

In summary, Scallop's differentiation in the lending protocol space is mainly in the areas of model optimization, prophecy machine strategy, free lightning loans, and Sui-based advantages. These features make Scallop will have a unique advantage in competing with leading programs such as AAVE and Compound.

CoinVoice：Outside of Sui ecosystem, there are already leading projects like AAVE and Compound in the field of lending protocols, what is Scallop's differentiation path?

Kriss：Swap mainly allows users to use the list of other decentralized exchanges (DEX) on Sui ecosystem in our application. If the usage is high, we will further integrate the SDK provided by our partners to build a user dashboard. As for the Bridge section, we have integrated with Wormhole Connect and will also provide users with more options such as linking to Portal Bridge and Celer's cbridge, while Scallop Tools is a tool that allows users to use the UI to launch custom Programable Transaction Blocks tool.

CoinVoice：Outside of Sui ecosystem, there are already leading projects like AAVE and Compound in the field of lending protocols, what is Scallop's differentiation path?

Kriss：Currently, we launched Scallop V1 on the Sui mainnet in June. this phase also includes rigorous auditing, open sourcing our contract code, and launching a vulnerability bounty program.

In Q3 2023, we are targeting mostly growth, and also plan to introduce hybrid and segregated pools of assets and support long-tail assets.

By the fourth quarter of 2023, we plan to introduce leveraged lending. At that time we also look forward to launching IDO with the IDO Launchpad and CEX partners, during which time we will launch our own Scallop token.

CoinVoice：Congratulations on winning first place at the Sui Buildhouse Seoul Demo Day. You've been through several Sui developer events and have achieved good results, what do you think about winning this time?

Kriss：We were a little surprised but also very happy. The winning product, Scallop Tools, was something our team had always envisioned, but we usually focus on the main product (lending agreement) part, so we never had a chance to start developing it. However, this tool is exactly what the Sui ecosystem is currently lacking and highlights the features and application scenarios of the Sui Programable Transaction Blocks feature to the greatest extent possible. We also hope to take this opportunity to encourage other developers to get more involved in the Sui ecosystem and development community, where Sui really stands out in its technology.

CoinVoice：Now, the whole market is not performing well, and Sui eco is not performing well after its launch. So that you can get through this difficult moment successfully?

Kriss：Currently, our efforts are mainly focused on providing the best quality lending products to attract more users to Sui. Only by continuously improving our products and services can we attract more users.

We also value our cooperation with the builders of Sui's ecosystem. They not only help us improve and optimize our products, but also help us better understand the needs and changes of the market. We are also working to improve our risk management and operational efficiency to ensure that our ecosystem continues to operate stably. We believe that the benefits of Sui will be able to be seen by more people as time goes on.