Scallop leveraged farming with a veSCA boost

Deposit one coin and the farm runs a borrow-and-lend loop on Scallop for you, earning the lending yield plus Scallop's borrow incentives. JewelSwap's own veSCA boosts those incentives, so you don't have to lock SCA yourself.

2.86x effective leverageCompounds every 4 hoursStable and BTC pairs

Open Scallop farms Read the docs

suiUSDT-USDC farm

APY

Live in app

Leverage

2.86x

DepositsuiUSDT

Borrowed and lentUSDC

Collateral weight65%

Buffer before liquidation35%

RewardssSUI and sSCA, auto-compounded

Four steps, run by the farm

A 65% collateral weight means the farm borrows 65 cents for each dollar you deposit, which works out to 2.86x effective leverage (1 / (1 - 0.65)).

Step 1

Deposit

You deposit the collateral leg, for example suiUSDT, and get a position NFT.

Step 2

Borrow

The farm borrows the debt leg, for example USDC, against your collateral on Scallop.

Step 3

Lend

The borrowed coin goes back into Scallop's lending market to earn supply yield.

Step 4

Boost

JewelSwap's veSCA raises the borrow-incentive rewards, up to Scallop's 4x maximum.

The pairs

Both pairs keep the two legs on the same underlying asset, so price direction mostly cancels out. The return comes from the lending spread and incentives.

suiUSDT-USDC

A stablecoin pair. What moves it is the USDC borrow rate and the size of Scallop's incentive programme, not the market.

sbwBTC-zwBTC

Both legs are Bitcoin from different issuers. zwBTC is the debt leg because it is the only BTC market on Scallop with borrow incentives. Exits can repay directly instead of swapping through the thin sbwBTC/zwBTC market.

Farm details

Collateral weight65% on both pairs

Effective leverage2.86x

Reward tokenssSUI and sSCA

CompoundingEvery four hours, automatic

veSCA boostUp to 4x on incentives, from JewelSwap's veSCA

veSCA key custodyInside the farm contract, removable only by the 3-of-5 multisig

Share of farm rewards to JWLSCA stakers15%

Risks

Borrow-rate risk. If the borrow rate rises above the incentive rate, the carry turns negative.
Incentive risk. Scallop's borrow incentives are a programme, not a guarantee. They can shrink or end.
Liquidation drift. Interest accrues on the debt while the collateral stays put, so the ratio moves toward the threshold over time.
Peg risk between wrappers. On the BTC pair, sbwBTC and zwBTC must both keep tracking BTC.
Smart-contract risk in Scallop and in the JewelSwap farm contract.

Questions

How does Scallop leveraged farming work on JewelSwap?

You deposit collateral such as suiUSDT. The farm borrows against it on Scallop at a 65% collateral weight, supplies the borrowed coin back to Scallop's lending market and collects the lending yield plus Scallop's borrow incentives. Your position is a share of the farm, shown as a position NFT.

Do I need my own veSCA?

No. The boost comes from JewelSwap's own veSCA, funded by JWLSCA stakers. Each farm's veSCA key is held inside the farm contract and only the 3-of-5 multisig can take it out.

How often are rewards compounded?

Every four hours. Rewards are paid in sSUI and sSCA and the protocol harvests and reinvests them, so there is nothing to claim.

Can a Scallop farm position be liquidated?

Yes. Borrow interest accrues while the collateral does not grow to match it, so the collateral ratio drifts toward the threshold over time even if prices stay flat. The 35% buffer gives room, but it is not unlimited.