Recently, the leading DeFi protocol Pencils Protocol in the Scroll ecosystem has made a series of major market progress. Since September 18, $DAPP tokens have successively launched IDOs on platforms such as Tonkensoft, Bounce and Coresky, and they were sold out in a short period of time. At the same time, after the token sales were completed, DAPP tokens were successively logged into a series of platforms such as Gate and Bybit on September 27, and a series of activities including Trade to earn and Staking were launched simultaneously, heralding the full launch of the ecological economic system.

Users in the new IPO market have shown great enthusiasm for $DAPP, and in the secondary market, we also have certain growth expectations for it and have reason to be optimistic about it in the long run.

1.Scroll Ecosystem Head Protocol, Siphoning Users and Funds

Pencils Protocol is the leading DeFi protocol in the Scroll ecosystem. Its TVL has now exceeded US$350 million, accounting for about half of Scroll's TVL. Even from an industry perspective, Pencils Protocol can easily exceed US$350 million with only a single chain and only opening the Farming section among many products. This is a veritable DeFi unicorn project.

Therefore, it not only captures top resources, funds and users in the Scroll ecosystem. With the development of its multi-chain trend and the expansion of its business, the TVL data of the Pencils Protocol will continue to break through and maintain its position in the top echelon.

Therefore, judging from the valuation of Pencils Protocol alone, it is expected to maintain the same position as the top DeFi projects such as Uniswap and AAVE. The valuation of $DAPP should be aligned with the top assets such as UNI and AAVE. $DAPP, which has just been launched on CEX and has just opened for trading, has huge room for value growth.

2. Strong profitability

Pencils Protocol itself has strong profitability. For example, the Farming and Vaults products that have been launched now have strong hematopoietic scenarios. For example, the fees and loan income when users participate in staking and use Vaults products can all be profitable. In particular, the cooperation between Vaults products and Mind Network can capture income from AI, FHE and other series of networks.

Features that have not yet been launched, such as auctions and shops, will further help Pencils Protocol establish in-depth links with more projects, ecosystems, and tracks, and will also be the engine for capturing the value of the Pencils Protocol ecosystem.

Therefore, with multiple profit channels brought by multiple product segments, and with the support of over 550,000 active users and $350 million TVL, the Pencils Protocol platform will generate huge trading volume and obtain very considerable continuous platform income. The Pencils Protocol platform will use part of the platform income to repurchase and destroy $DAPP tokens, which will bring strong upward momentum to the tokens, which is an important value foundation for the continued rise of DAPP tokens.

3. Multiple application scenarios

$DAPP token is an important ecological token of the Pencils Protocol platform. Holders of DAPP token will be able to obtain a series of rights and interests, such as increased returns in the Vaults section, early allocation of quotas in the auction section, and airdrops of a series of high-quality assets in the future, etc. At the same time, DAPP token is also an important circulating asset in the ecosystem, such as a payment asset in the LaunchPad section, used to purchase some RWA assets in the Shop function, etc.

It is foreseeable that the DAPP token will continue to maintain rigid demand in the Pencils Protocol ecosystem due to a series of application scenarios.

4. Low circulation

The DAPP token itself has a low circulation. For example, whether it is the IDO round or the airdrop round, it is not fully released, but a small part is released in the early stage and released linearly in the following months to a year. At the same time, whether in the platform, CEX or some DeFi partners, the DAPP token has built a series of staking scenarios, such as the Farming of the DAPP token that will be launched on the platform, and the Staking launched on Gate, Bybit and other platforms, which will further restrict the circulation of the DAPP token. With the launch of Vaults and the auction function next month, the DAPP token will have a further rigid demand and will be continuously destroyed, which means that the DAPP token itself always maintains a low circulation.

Under the premise of low circulation, launching more trading platforms will further drive the increase in the value of DAPP tokens.

In general, whether from the project fundamentals of Pencils Protocol, the profitability of the project itself, or the DAPP token model and the fundamentals of deflation and market circulation, it has extremely strong upward potential and is worth holding in the long term.