The Scallop Investment Adventure: Balancing High Returns and Risks

 **Investors in Scallop**

MystenLabs: It feels like the official SUI.

Basically, this is like my personal memo, so please DYOR (Do Your Own Research) if you read it.

https://app.scallop.io/referral?ref=66f7cba41780368efc67bc4f

DeFi can offer high returns (like 800% yield), but it comes with risks. Here are some of the main risks in DeFi (Decentralized Finance):

- **Impermanent Loss**: The value of assets deposited in liquidity pools can decrease due to price fluctuations.

- **Rug Pull**: A tactic where project developers run away with the funds.

- **Token Price Volatility**: Tokens have very high volatility, and sudden price changes can occur.

- **Security Risks**: Smart contracts can have bugs or vulnerabilities that can be exploited.

- **Regulatory Risks**: There is a possibility of being banned or regulated by authorities in various countries.

I am actually investing, and it's very user-friendly as you can display it in Japanese next to the gear icon on the top right✨

In the "Lending" tab, just select the currency and click "Supply". Currently, the APY for SCA is amazing💰 (as of 2024/9/28).

When you want to withdraw, just click "Withdraw" and it's immediate. To claim rewards earned from the yield, just click "Harvest" displayed at the top!

I was supplying afSui, but the yield was too low, so I withdrew it for now. I also harvested the rewards, so currently, I have zero. SUI supports Japanese and is very seamless and easy to use.

Once you get used to it, you might want to try "Borrowing"🏦. I am depositing haSUI and afSUI, borrowing SUI, converting SUI to afSUI, and depositing it to earn yield. This scheme is amazing...

“I use coins like afSUI as collateral to borrow money. The borrowed money generates returns.”

You can use any coin like afSUI as collateral to borrow money. The borrowed money also earns yield.

I convert the SUI borrowed from Aftermath to afSUI.

This way, the principal keeps growing✨. 

It really feels like decentralized finance💰.

“Here is Scallop.”