Is Scallop Safe?
Risk Grade: B- (28/100)
Scallop is rated as moderate risk — some novel mechanisms, generally well-understood.
Moderate risk — strong position on Sui, but single-chain concentration and immature security tooling on a young blockchain are real constraints
The top lending protocol on the Sui blockchain, where you deposit tokens to earn interest or borrow against them. It holds $200M in deposits and raised $3M. Its B- grade reflects that being the biggest lender on a young blockchain means absorbing all ecosystem-wide shocks, with fewer battle-tested security tools than Ethereum.
TVL
$24M
Mechanisms
8
Interactions
5
Value Grade
D+
Key Risks for Scallop Users
Everything runs on Sui. If SUI token crashes 50%, mass liquidations would overwhelm the thin trading liquidity on Sui's exchanges, creating bad debt
Sui's smart contract language (Move) has far fewer security researchers and audit tools than Ethereum's Solidity, meaning bugs are harder to catch
The protocol relies on three separate price feeds (Pyth, Switchboard, Supra) -- if they disagree during a volatile moment, interest rates and liquidations can misfire
Top Risk Factors
- •Single-ecosystem concentration: as Sui's top lending protocol, Scallop is fully exposed to Sui chain risk, bridge failures, and ecosystem-wide contagion
- •Multi-oracle dependency (Pyth, Switchboard, Supra) on a younger chain — oracle infrastructure is less battle-tested than Ethereum equivalents
- •Sui's Move-based smart contracts have a shorter audit history than Solidity, with fewer security tools and researchers available
Risk Score Breakdown
Scallop's highest risk area is Vitality Risk (7/10). Here's how each dimension contributes to the overall 28/100 score:
Read the Full Scallop Risk Report
This protocol has 2 collapse scenarios. 2 high-severity interaction risks identified. See the full mechanism classification, interaction matrix, and deep-dive recommendations.
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