Pencils Protocol is the largest comprehensive DeFi platform in the Scroll ecosystem. As the DAPP token is launched to the market, the Pencils Protocol ecosystem and economic system will also be fully operational. At present, DAPP tokens have been launched on mainstream trading markets such as Gate, Kucoin, Bitget, and Coinone. Global users can participate in the construction of the Pencils Protocol ecosystem by holding DAPP tokens. As the Pencils Protocol ecosystem expands in business, DAPP will continue to be empowered.
In fact, DAPP token is still a small-cap token, with a current market value of only $2.95 million and a FDV of about $14 million. The current status of the token is seriously inconsistent with its fundamentals and business. When we look at the previous round of valuation, the market value of tokens of similar projects such as Yearn Finance and Alpaca Finance is basically above $1 billion, so DAPP itself still has a lot of room for growth.
It can be seen that DAPP is still in the very early stages of development. For this token, there are two new opportunities that will help the DAPP token explode. One is the full launch of the Scroll ecosystem, and the other is the in-depth expansion of the Pencils Protocol in terms of ecology and business.
The full launch of the Scroll ecosystem: the fuse for the DAPP token explosion
Scroll is a technically remarkable ecosystem in the zk-Rollup camp. Before the SCR token TGE, the DeFi system of this ecosystem has not been fully launched. With the recent launch of the SCR token and its further marketization, it has become the last piece of the puzzle to promote the prosperity of the Scroll ecosystem.
Therefore, the further improvement of the Scroll ecosystem means that more and more developers, dApps, funds, and users will flock to the Scroll ecosystem.
Pencils Protocol is the leading project of the Scroll ecosystem. It is not only the largest comprehensive DeFi platform and revenue aggregator of Scroll, but also the largest liquidity hub and LaunchPad platform. Users can stake LRT tokens through the Farming section, conduct leveraged mining through Vaults, participate in staking on the Mind Network, and soon use the active income function of Vaults and participate in the LaunchPad of the Auction to capture income. Pencils Protocol will serve as a comprehensive and important revenue end of the Scroll ecosystem.
For projects in the Scroll ecosystem, they need to capture users, funds, and liquidity. Pencils Protocol has more than 700,000 active users and is the largest attention value hub on Scroll. Its Vaults section is also the most important liquidity hub on Scroll. For emerging projects that want to log in to the Scroll ecosystem, the Auction launchpad is the best choice. Therefore, whether it is Scroll ecosystem projects or users, Pencils Protocol can meet their needs and empower them in depth.
As an important equity asset of the Pencils Protocol ecosystem, the DAPP token is also an important functional asset in the ecosystem. In this process, it will be continuously empowered, its rigidity will continue to increase, and it will become an important "value container" for the Pencils Protocol ecosystem and even the Scroll ecosystem.
So overall, with the full launch of the Scroll ecosystem, which represents the full operation of the ecological value flywheel, Pencils Protocol will also usher in a new opportunity, which will become the fuse for the explosion of DAPP tokens.
Pencils Ecosystem and Business Expansion: Continuously Empowering DAPP Explosion
The expansion of the Scroll ecosystem has sounded the clarion call for the explosion of DAPP, and the expansion of the Pencils Protocol ecosystem and business will continue to provide momentum for the explosion of DAPP.
In fact, as the Farming and Vaults product segments are gradually launched to the market, Pencils Protocol is now able to meet users' demands for returns, and have become an important part of Pencils Protocol's early growth and capturing early seed users. At the same time, Pencils Protocol has also begun to gradually establish protocol revenue based on the above segments.
In the new development stage, Pencils Protocol is about to usher in new progress in the business. At present, the Auction section is already facing the market. An important part of the Auction product section is the LaunchPad with a wealth effect. The difference of this LaunchPad lies in its unique listing strategy, that is, the listed projects will be listed on the Auction at a price far lower than the actual valuation, and users can participate in it in a similar way to Fair Launch. At the same time, Auction has also launched the Ecosystem Hub, which provides ecological projects with funds and growth resources covering major public chains, and provides one-stop support for project launches, including KOL promotion, community building, cross-chain integration, contract auditing, market making services, head exchange listing, VC docking, etc.
The Auction section will serve as an important launchpad and channel for Scroll ecological projects to face the market and establish connections with community users. It is also of great significance to the prosperity and development of the Scroll ecology.
In addition to the LaunchPad section, Auction is also expected to launch a series of auction functions in the future, such as the early sale of some high-quality assets, equity assets, and RWA assets, to help Pencils Protocol and Scroll ecosystem introduce more high-quality assets, and is expected to become an important channel for establishing links with the Web2 world.
It is foreseeable that Auction is an important part of empowering DAPP tokens. The most intuitive thing is that those who hold and participate in staking DAPP will enjoy a series of ecological rights and interests, such as priority participation, discounts, etc. Therefore, this will give DAPP more practical functions, reduce the market circulation of DAPP and increase rigidity. At the same time, the launch of Auction will further increase the protocol revenue and bring a new opportunity for the destruction of DAPP. At present, Auction LaunchPad is about to usher in its first Launch project Rho Markets, and Launch Pool staking is about to start (app.pencilsprotocol.io/auctions). The user's participation in DAPP staking will be related to the amount of the first Launch project.
In addition, the DAPP staking activity in the Farming product started on November 12 and ended on November 25. The APY during the inactive period was 20%, while the APY in the first week of the activity was 2 times, or 40%, and in the second week it was 1.5 times, or 30%.
As an important launchpad for the Scroll ecosystem, Auction will further focus more attention and is expected to bring more derivative value to DAPP, such as airdrops, etc. Therefore, the Auction section will be a new opportunity for the Pencils Protocol ecosystem to achieve growth.
In addition to the Auction product segment, Pencils Protocol will continue to expand into BTCFi. Currently, it has become one of the largest BFTFi LRT staking protocols in this field through cooperation with a series of LRT protocols. By expanding into the BCTFi field, Pencils Protocol is expected to become one of the driving forces for unlocking the value of the trillion-dollar BTC system, and introduce these values into the ecosystem to empower DAPP.
In the long run, Pencils Protocol will continue to dig deeper into the Scroll ecosystem and develop towards a multi-chain trend, which will provide opportunities for DAPP to capture long-term value. Therefore, the full launch of the Scroll ecosystem will be a new opportunity for both the Pencils Protocol ecosystem and DAPP.
