By participating in SCA staking and holding veSCA, Scallop users can gain access to a myriad of features and incentives.
Introducing the first of many veSCA’s token utility — Boosted Borrowing Incentives!
Scallop will be launching our SCA Borrowing Incentives, where users who borrow from Scallop will receive SCA incentives as reward on top of the current SUI incentives. By staking SCA for veSCA tokens, users will be entitled to a BOOSTED SCA incentives when they borrow.
Borrowing Incentive Details
Start Date: 25th March 2024
Week 1 Rewards: 28,000 SCA
Do note that weekly SCA incentives will be dynamically adjusted. Weekly incentives will be announced at the start of each week.
veSCA Boost Mechanism
The more veSCA you hold, the more SCA reward you receive when borrowing on Scallop!
- All borrowers on Scallop will receive SCA rewards.
- Only veSCA holders will be entitled to boosted SCA rewards.
- SCA reward boost will vary from 1x to 4x, depending on the amount of veSCA held.
- When the veSCA held decays to 0, the SCA reward boost will reset to 1x.
veSCA Boost Calculation
The amount of incentive boost received depends the amount of veSCA held with respect to the user’s borrowed amount.
The more a user borrows, the more veSCA has to be held in order 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 Reward Distribution
The weekly SCA reward incentives will be dynamically adjusted.
For Week 1, the total SCA incentives will be 28,000 SCA.
