# sCoin

**What is sCoin?**

**What is sCoin?**

Scallop is a decentralized financial money market that allows users to lend and borrow various cryptocurrencies. When users make a supply in Scallop lending pools, they receive sCoin that represents supplies (e.g. sSUI for SUI supplies, sUSDC for USDC supplies).

The main functions of these sCoin are:

Interest-bearing: sCoin value will increase over time, reflecting the interest earned on deposits.

Exchange Rate: The relationship between sCoin and its underlying assets is determined by the exchange rate. This is a value indicating how many underlying assets sCoin can be exchanged for. This exchange rate will grow over time as the interest earned on the deposit is added back to the underlying asset.

The price calculation of sCoin is based on the price of its underlying asset. The following are the basic concepts of sCoin price calculation:

When you deposit to Scallop for the first time, the amount of sCoin you will get depends on the current exchange rate. But over time, the exchange rate rises due to the accumulation of interest. For example, if the exchange rate of sSUI increases to 1.03, it means that each sSUI now represents more SUI.

For example, if the price of 1 SUI is $1 USD, and the exchange rate of sSUI is 1.03, then the price of sSUI will be: sSUI price = 1*1.03 = $1.03

It is important to understand that the price of a sCoin is correlated to the price of the underlying asset and that the exchange rate will rise over time and accrue interest. Therefore, holding sCoin not only represents the ownership of the underlying assets but also represents the interest earned.

You will be able to view the types and amount of sCoin you have on Scallop’s dApp.

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