Scallop is a decentralized money market protocol built on the Sui blockchain. It functions as a foundational financial layer within the Sui ecosystem, providing a platform where users can participate as lenders or borrowers. The core mechanism allows users to supply various crypto assets to liquidity pools to earn passive income through interest. Conversely, users can borrow assets by providing other supported cryptocurrencies as collateral. This over-collateralized lending model is a standard practice in decentralized finance (DeFi) to ensure the solvency of the protocol. As a key component of the Sui DeFi landscape, Scallop supports a range of digital assets, including the native SUI token, stablecoins like USDC and USDT, and other tokens circulating on the network. The protocol's interest rates are determined algorithmically based on the supply and demand dynamics within each asset pool. By offering these fundamental financial services, Scallop aims to improve capital efficiency for users and other dapps operating on the Sui network. The platform's infrastructure is built using smart contracts that automate the processes of lending, borrowing, and interest calculation in a transparent, on-chain manner. The protocol also features a native token, SCA, which is used for governance. Holders of the SCA token can participate in voting on key proposals related to the platform's development, risk parameters, and treasury management. This governance structure allows the community to have a say in the future direction of the Scallop protocol. By providing essential DeFi primitives on a high-performance Layer 1 blockchain, Scallop contributes to the overall liquidity and composability of the Sui ecosystem.