Scallop’s SCA Borrowing Incentive is now LIVE!
Stake your SCA for veSCA, and gain up to 4x boost for SCA incentive rewards when you borrow from Scallop!
This article will serve as a guide for you to get started on earning juicy SCA incentives!
Step 1: Head to veSCA page and stake SCA
Step 2 (Only need to be done once): Head to Lending page and migrate borrow incentive by clicking “Migrate and Claim”.
Note: It is important that you migrate borrow incentive, else you will not be able to earn SCA incentives.
If you are a new Scalloper, this step is not required.
Step 3: Switch to Borrowing tab and under Collateral Pools, deposit some collateral assets.
Do note that you will not be able to borrow the same asset that you have deposited as collateral (E.g. You cannot borrow SUI if you deposit SUI as collateral).
Step 4: Switch to Borrowing Pools and borrow SUI to start earning SCA incentives!
And there you have it, you have now successfully borrowed SUI from Scallop and will start earning juicy SCA incentive rewards!
veSCA Boost Calculation
Users who stake SCA for veSCA will be able to receive up to 4X BOOST for their SCA incentives!
The amount of incentive boost received depends the amount of veSCA held with respect to the user’s borrowed amount.
The more veSCA held, the more a user can borrow to receive the Maximum Incentive Boost!
The incentive boost will be calculated based on percentages of user borrow amount compared to total borrowed amount on Scallop, and veSCA held compared to total veSCA amount.
To illustrate:
User borrows a percentage of the total borrowed amount on Scallop: B%
User holds a percentage of the total veSCA amount on Scallop: V%
If V% ≥ B%, Boost = 4
If V% < B%, Boost = 1 + 3 * (V/B)
For example:
As you can see, user C will get 4x the SCA reward compared to user A even with the same borrowed amount.
SCA Incentive Distribution
Users who hold veSCA will have a multiplier applied to their final APR.
For example:
Current SUI borrowing pool incentive is 25.02%.
User has 4x boost from holding veSCA.
Final APR amount = 25.02% x 4 = 100.08%
As you can see, it is highly advantageous to stake SCA for veSCA in order to maximise your yield returns!
To estimate your boost amount, try out Scallop’s official veSCA Boost Calculator!
SCA Staking Platform: https://app.scallop.io/vesca
