🥩Scallop Yield Farming
Jewel Scallop Yield Farm is a pioneering leveraged yield farming protocol built on the Sui blockchain that integrates with the Scallop lending protocol.
What is Jewel Scallop Yield Farm?
Jewel Scallop Yield Farm is a pioneering leveraged yield farming protocol built on the Sui blockchain that integrates with the Scallop lending protocol to provide users with sophisticated DeFi farming opportunities. It's the first protocol to combine leveraged yield farming with VeSCA token boosting on the Sui ecosystem.
Key Innovation: Deposit + Borrow + Lend Strategy Backed By VeSCA Boosting
Jewel Scallop Yield Farm implements a unique four-step yield farming mechanism:
Deposit: Users deposit collateral tokens (e.g., SUI USDT)
Borrow: The protocol automatically borrows debt tokens (e.g., USDC) against the collateral
Lend: Borrowed tokens are supplied to lending markets to earn yield
Boost: VeSCA token staking provides up to 4x multiplier on incentive rewards
This creates a leveraged yield amplification effect where users can earn significantly higher returns than traditional farming methods.
How It Works
The Farming Cycle
User Deposits Collateral (i.e, USDT)
↓
Protocol Calculates Borrow Capacity
↓
Protocol Borrows Debt (i.e, USDC)
↓
Protocol Supplies Debt to Lending Market (i.e, USDC)
↓
Protocol Earns Lending Yield + Borrow Incentives
↓
User Receives Position NFT + Yield RewardsLeverage Mechanics
Collateral Weight: Typically 65% (borrow 65% of deposited value)
Effective Leverage: 2.86x (1 / (1 - 0.65))
Safety Margin: 35% buffer against liquidation
Risk Management: Built-in liquidation protection through Scallop's obligation system
Key Features
🚀 Leveraged Yield Farming
Higher Returns: Earn significantly more than traditional farming
Capital Efficiency: Maximize yield on your deposited assets
Automated Strategy: Protocol handles the complex borrowing and lending logic
🎯 VeSCA Integration
Boosted Rewards: Up to 4x multiplier on incentive rewards
VeSCA Staking: Lock VeSCA tokens for enhanced yields
Dynamic Boosting: Rewards scale with your VeSCA holdings
🔄 Automated Compounding
Reward Harvesting: Automatic collection of earned rewards
Reinvestment: Automatic reinvestment of rewards for compound growth
Gas Optimization: Efficient transaction batching
🛡️ Risk Management
Liquidation Protection: Built-in safeguards against liquidation
Oracle Integration: Real-time price feeds for accurate valuations
Position Tracking: NFT-based position ownership and management
💰 Multi-Layer Yield Generation
Lending Yield: Interest from supplying tokens to lending markets
Borrow Incentives: Rewards for participating in Scallop's incentive program
VeSCA Boosting: Enhanced rewards through VeSCA token staking
Protocol Fees: Share of fees collected from other users
Yield Sources
1. Base Lending Yield
Supply APR: Earn interest by supplying tokens to lending markets
Market Rates: Dynamic rates based on supply and demand
Compound Interest: Automatic reinvestment for exponential growth
2. Borrow Incentive Rewards
SUI Rewards: Earn SUI tokens for borrowing activities
SCA Rewards: Earn SUI tokens for borrowing activities
VeSCA Boosting: Up to 4x multiplier on incentive rewards
3. Protocol Fee Sharing
User Distribution: 70% of yield distributed to position holders
VeSCA Stakers' Fee Collection: 15% of total yield distributed to VeSCA stakers as their commission
Fee Collection: 15% of total yield collected as protocol fees
APR Calculation
Total APR Formula
Total APR = (Supply APR - Borrow APR) × Leverage +
(Base Incentive APR × VeSCA Boost Multiplier)Example Calculation
Supply APR: 9.38%
Borrow APR: 13.43%
Net Supply Yield: -4.05%
Leverage: 2.86x
Base Incentive APR: 10%
VeSCA Multiplier: 4x (with sufficient VeSCA)
Total APR: (-4.05% × 2.86) + (10% × 4x) = -11.58% + 40% = 28.42%
Integration with Scallop
Scallop Protocol Integration
Obligation System: Leverages Scallop's collateral and debt management
Lending Markets: Uses Scallop's lending infrastructure
Borrow Incentives: Participates in Scallop's incentive programs
Oracle System: Integrates with Scallop's price feed system
VeSCA Protocol Integration
Subscription System: Enables boosted rewards through VeSCA staking
Reward Distribution: Enhanced yield distribution to subscribers
Governance: Community-driven protocol management
Community & Support
Getting Help
Documentation: Comprehensive guides and tutorials
Discord Community: Real-time support and discussions
GitHub Issues: Technical support and bug reports
FAQ Section: Answers to common questions
Contributing
Community Governance: Participate in protocol decisions
Bug Reports: Help improve the protocol security
Feature Requests: Suggest new features and improvements
Jewel Scallop Yield Farm represents the next generation of DeFi farming, combining the power of leveraged yield farming with the innovative VeSCA boosting system on the Sui blockchain. Whether you're a DeFi veteran or new to yield farming, Jewel Scallop Yield Farm provides the tools and opportunities to maximize your returns in the Sui ecosystem.
Ready to start farming? Check out our How to Start Farming guide!
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