🥩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:

1. Deposit: Users deposit collateral tokens (e.g., SUI USDT)

2. Borrow: The protocol automatically borrows debt tokens (e.g., USDC) against the collateral

3. Lend: Borrowed tokens are supplied to lending markets to earn yield

4. 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 Rewards

Leverage 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

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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!