GM Scallopers!
We have recently pushed a major update for Scallop’s sCoins and in this article, we will be introducing the new Wrapped sCoins and some of sCoins unique features.
Wrapped sCoins
With our latest update, sCoins are now viewable across all Sui wallets and platforms!
This new update will unlock endless opportunities and utilities for Scallop sCoins in the coming weeks. Some of these opportunities includes:
- Integration of sCoins on supported DeFi protocols
- Displayed in all supported Sui wallets
- Transferable across supported Sui wallets
Following this update, Scallopers with the old sCoins will have to migrate their sCoins to the newer Wrapped sCoins via Scallop dApp!
Simply head to Scallop dApp and select the “Migrate” button. This will automatically convert all of your old sCoins and replace with the new sCoins, including the staked sCoins in the sCoins pool.
What are sCoins?
sCoins are essentially Scallop’s very own liquid derivative tokens. When a user supplies asset into Scallop Lending Pool, the user will receive the corresponding sCoin in return as representation of their deposit on Scallop. Likewise when a user withdraws their asset from Scallop Lending Pool, the user will return the respective sCoin back to Scallop.
sCoin’s Interest Bearing Mechanism
The core feature of sCoins is that it is an interest-bearing token. This means that the value of sCoins will gradually increase over time.
The relationship between sCoins and its underlying assets is also determined by an exchange rate.
An example to illustrate sCoin’s mechanism:
Given User A supplies SUI into Scallop’s SUI Lending Pool
Exchange Rate at the time of deposit: 1sSUI = 1.1 SUI.
Supply Interest Rate = 12% per year.
After 1 month, the value of sSUI is expected to go up by 1%.
After 1 month, the Exchange Rate becomes: 1sSUI = 1.111 SUI.
Therefore, holding sCoins not only represent the amount of assets supplied on Scallop but it also represents the interest earned over time.
For more information on sCoins, check out our detailed documentation: https://docs.scallop.io/scallop-lend/lending/scoin
