Gotbit Hedge Fund has made a significant investment, channeling $4.3 million into the liquidity of the leading DeFi protocol Scallop on the SUI blockchain. This move has propelled Scallop to the forefront on SUI, capturing over 25% of the total value locked (TVL) on the platform. Scallop stands out by offering an attractive APR of over 20% for stablecoins such as USDC and USDT, drawing the attention of major investors in the market.
The entire Gotbit team is set to work on their Token Generation Event (TGE), with expectations of seeing APR rates between 50-90% in the first six months following the launch of veSCA tokens. This substantial boost in earnings is not anticipated to lead to $SCA inflation, as it remains beneficial for institutional investors to purchase and lock $SCA tokens. This strategy aims to secure a larger share of guaranteed $SUI rewards (from Mysten Labs until November), maintaining a high APR requires a significant pool of locked $VeSCA tokens. The equation is simple: a sharp decrease in supply coupled with rising demand typically leads to a surge in value.
Reflect on the DeFi summer of 2021-2022, exemplified by $COMP, to understand the potential impact. While not implying a direct comparison, Gotbit and our institutional clients plan to further invest in Scallop and support the DeFi ecosystem on SUI. Therefore, it’s crucial to stay informed, do your own research (DYOR), and note this is not financial advice (NFA)!
Gotbit played a pivotal role in advising the Scallop team against a conventional IDO, which often leads to quick flips by retail investors, leaving the team and investors locked for 6-12 months. Get ready to enjoy the developments this Friday, March 8, and perhaps even earn enough to buy a bouquet through app.scallop.io.