by Kriss | Scallop
Smart Contract and DeFi technology have been growing very fast since 2014 when Ethereum was released. In 2019, many DeFi projects were announced and it affected the financial concept of all humans, it has made a great impact on traditional finance markets around the world. Meanwhile, NFTs walk into people's lives too, and there is a lot of potential in the usage of it in many aspects, it can be used to represent things including photos, videos, audio, and other types of digital assets.
In February 2020, Solana released its Mainnet beta, besides the low Gas fees and fast speed like many new L1 or L2 chains, the features of the high composability, unique account structure, parallel, and statelessness make Solana an outstanding Layer 1 blockchain. Scallop team thinks Solana will be one of the best layer 1 blockchains.
In 2022, we can see various kinds of great well-growing DeFi protocols on Solana, such as lending/borrowing protocol, AMM protocols, order books, options, etc. Given that there have been many types of DeFi protocols existing, if we want to build an outstanding protocol in the Solana ecosystem, we need it to be something innovative. Therefore, we have decided to build a no-loss protocol, the core logic of it is inspired by Pooltogether on Ethereum. No-loss protocol is a kind of smart contract that makes the fund pools use lending protocols to earn interest and use verified randomness functions routinely to pick one or some participant to win all the interest, it's a flexible DeFi app that can maximize the potential yield and with no principal loss. No-loss protocol is also an interesting protocol that could let you put a few tokens there, and maybe the next time you check it, you will find you earned lots of tokens.
Pooltogether inspires Scallop a lot, the problems we solved which Web 2.0 ages can't solve for no-loss protocols are third-party verification and verification randomness, and we build on Solana even solve the issues that other no-loss protocols are facing including high Gas fees and slow transaction, they make other no-loss protocols still not perfect due to it still cost a lot for most of the people and the funds are also not flexible. Meanwhile, we also found there are no apparent no-loss protocols competitors running or close to launching on Solana Mainnet.
Common DeFi protocols webpages are often overwhelmed with digits and numbers and make them lacking in warmness, it's hard to increase the app user’s stickiness because it doesn’t create a connection between protocols and users. We think we can build a new type of DeFi protocol, the core product is a no-loss protocol and combines a unique ocean-themed NFTs ecosystem on it, making Scallop become an enthusiasm protocol, and also make users have chance to win something else while they are having bad luck.
We are going to create ocean-themed tokens and NFTs to be unique on-chain collectibles as the extra protocol rewards, and it would be like Pokemon Cards or action figures, users can see them while they are visiting our site, and it can increase the application stickiness by making them feel like they are checking their collection cabinet, and our NFTs will also interact with our protocol, making Scallop be like a small Web3 NFTs project.
We think Scallop protocol will have a huge opportunity to take a part in the DeFi market and have its own community, and we are not only going to make an attractive DeFi protocol but also going to create an ocean-themed Web3 brand, sharing blockchain technology, Web3, and DeFi knowledge.