Scallop Lend
Rejected venues wait the longest for re-review; a rejection has to earn another look before the scheduled date.
Scallop is an upgradeable pooled money market on Sui where suppliers receive interest-bearing sCoins and borrowers post collateral subject to oracle and liquidation controls. The August 15, 2026 survey reported about $10.14M supplied and $2.47M borrowed. Rejected on the chain: the Sui review completed August 14, 2026 found that holdings on Sui can be frozen by a third of stake through standing validator deny lists, and that a Foundation-organized upgrade in May 2025, the Cetus response, moved funds without the owner’s keys. Nothing settled on Sui is reachable for advised client money, whatever the venue’s quality.
- The Sui chain verdict changes
- Deploys meaningful liquidity on a chain the registry approves
The research file
Applicability to the surveyed record
Scallop documents a Sui pooled lending market where suppliers deposit assets and receive interest-bearing sCoins, borrowers open overcollateralized obligations, and oracle prices plus liquidation factors govern solvency. Every sCoin, collateral object, debt update, oracle check, liquidation and withdrawal is a Sui transaction, directly satisfying the v1 rejected-chain dossier.
Current observation and perimeter
The DefiLlama protocol API read on 2026-08-15 classified Scallop Lend as Lending, reported only Sui, and showed approximately $10.14M TVL with about $2.47M borrowed. Current primary documentation likewise describes Sui gas, Sui objects and Sui-upgradeable contracts; no approved-chain deployment is evidenced.
Control and exit applicability
Scallop says its contracts and interest, liquidation, oracle and asset-pool parameters are upgradeable. Pyth and Supra feed its X-Oracle, which can halt borrowing and collateral withdrawal when prices are anomalous. Suppliers redeem sCoins for the underlying pool asset or swap them, subject to available liquidity, protocol outflow limits and Sui settlement.
Why the shared dossier decides
The shared v1 rejected-chain rule controls before protocol-quality diligence because all relevant rights and exits remain on Sui. Reopen only if the Sui chain verdict changes or Scallop deploys meaningful, separately auditable liquidity on an approved chain; then review governance and upgrades, markets and caps, oracles, liquidations, audits and incidents, utilization, stressed withdrawals and named lending alternatives.
Sources
The claims above trace to these. Where a number could not be independently verified, the thesis says so.
- Scallop — core lending architecture · primary · accessed 2026-08-15
Supports: Sui lending pool, sCoins, collateral debt, Pyth and Supra oracles, liquidation - Scallop — interest rates and upgradeable parameters · primary · accessed 2026-08-15
Supports: utilization rates, upgradeable contracts, liquidation parameters, oracle integrations, asset pools - Scallop — withdrawals · primary · accessed 2026-08-15
Supports: sCoin redemption, underlying withdrawal, secondary swap exit, Sui gas - Scallop — outflow limits · primary · accessed 2026-08-15
Supports: withdrawal limits, pool liquidity, daily caps, exit control - DefiLlama — Scallop Lend survey record · secondary · accessed 2026-08-15
Supports: current TVL, borrowed amount, Sui-only perimeter, Lending category
Inherited controls
The verdict above grades the protocol layer. Every position also inherits the asset it holds and the chain it settles on. The least safe layer sets the position’s grade, and the position table names which one that is.
| Chain | Verdict | Grade | Control constraint |
|---|---|---|---|
| Sui | Rejected | freezable | freeze and seizure are demonstrated: standing validator deny lists began freezing the Cetus exploiter’s ~$162M within about 80 minutes, and a Foundation-organized vote later moved the frozen funds without the owner’s keys. |