ScallopMicro-cap
Moderate risk — strong position on Sui, but single-chain concentration and immature security tooling on a young blockchain are real constraints
Top Risks
1
Single-ecosystem concentration: as Sui's top lending protocol, Scallop is fully exposed to Sui chain risk, bridge failures, and ecosystem-wide contagion
2
Multi-oracle dependency (Pyth, Switchboard, Supra) on a younger chain — oracle infrastructure is less battle-tested than Ethereum equivalents
3
Sui's Move-based smart contracts have a shorter audit history than Solidity, with fewer security tools and researchers available
Risk Breakdown
Frequently Asked Questions
Is Scallop safe to use?
Scallop receives a B- risk grade (28/100) from Hindenrank, where lower scores indicate lower risk. 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.
What are the main risks of using Scallop?
The key risks identified for Scallop are: (1) Everything runs on Sui. If SUI token crashes 50%, mass liquidations would overwhelm the thin trading liquidity on Sui's exchanges, creating bad debt (2) Sui's smart contract language (Move) has far fewer security researchers and audit tools than Ethereum's Solidity, meaning bugs are harder to catch (3) The protocol relies on three separate price feeds (Pyth, Switchboard, Supra) -- if they disagree during a volatile moment, interest rates and liquidations can misfire
What is Scallop's risk score breakdown?
Scallop scores 28/100 across eight risk dimensions: Mechanism Novelty: 2/15, Interaction Severity: 6/20, Oracle Surface: 2/10, Documentation Gaps: 3/10, Track Record: 0/15, Scale Exposure: 3/10, Regulatory Risk: 5/10, Vitality Risk: 7/10. The highest risk area is Vitality Risk at 7/10.
How does Scallop compare to other Lending protocols?
Among 90 rated Lending protocols on Hindenrank, Scallop ranks #11 by safety (lowest risk score = safest). Its 28/100 risk score and B- grade place it among the safer Lending protocols.
Has Scallop ever been hacked or exploited?
Scallop scores 0/15 on the Track Record risk dimension, indicating no significant exploits or security incidents in its history. However, past performance does not guarantee future security.
Last scanned 2026-02-16