Can ZKEVM become a new round of narrative in the market? —— Take you to understand the 60th issue of Binance Launchpool, Scroll (SCR)

1. Binance coin listing announcement

Binance Launchpool has launched the 60th phase of the SCROLL (SCR). Users can invest BNB and FDUSD into the SCR reward pool after 18:00 on October 9, 2024 (Eastern Time). The SCR activity time is 2 days.

Binance will list Scroll (SCR) on pre-market trading at 18:00 (ET) on October 11, 2024, and open the SCR/USDT trading market. The end time of pre-market trading and the time of spot listing will be announced later, so please stay tuned for announcement information. The maximum individual holding amount is 2,500 SCR.

• Token Name: Scroll (SCR)

• Total Token Supply: 1,000,000,000 SCR

• Initial circulation: 190,000,000 SCR (19% of total token supply)

• Launchpool Total: 55,000,000 SCR (5.5% of the maximum token supply)

• BNB pool (the website will be updated within 24 hours of this announcement and before the event starts): total rewards 46,750,000 SCR (accounting for 85%)

• FUSD pool (the website will be updated within 24 hours of this announcement and before the event starts): total reward 8,250,000 SCR (15%)

2. Project Introduction

1) Project Vision

Scroll is a zkEVM-based zkRollup on Ethereum, used as a Layer 2 solution to solve Ethereum's congestion problem. Scroll was founded in 2021 and is committed to creating an EVM (Ethereum Virtual Machine) equivalent zk-Rollup for better compatibility.

2) Core Technology

Scroll is the bytecode-level equivalent of Ethereum's zkEVM Layer-2. Created in collaboration with the Ethereum Foundation's PSE team, Scroll is a developer-friendly zkRollup that is aligned with Ethereum's values. It has launched on the mainnet and plans to decentralize validators and sequencers. Scroll has developed the world's first true zkEVM, using the advanced Halo2 proof system, and is the most EVM-compatible zkEVM on the market.

Scroll proposed the first ZK hardware accelerator, PipeZK, opened up the ZK hardware market, and built its own GPU zkEVM prover that is 10x faster than CPU.

• Scroll’s network consists of three layers:

Sorting layer: Contains an execution node and a rollup node. The execution node sorts and executes the user's transactions, and the rollup node publishes the transaction data and validity proof to Ethereum Layer 1 to ensure data availability and final confirmation.

Proof layer: includes a coordinator and a group of provers. The coordinator assigns blocks to provers and verifies the proofs returned by provers on the chain. Provers generate zkEVM validity proofs for L2 transactions to ensure the correctness of transactions.

Settlement layer: consists of a bridge contract and a rollup contract. It determines the final order of transactions for Scroll's chain, verifies validity proofs, and allows messaging between Ethereum and Scroll.

• The transaction lifecycle of the Scroll protocol consists of the following three phases:

Confirmation phase: The user submits the transaction to the L1 bridge contract or L2 sorter. Usually confirmed within 3 seconds.

Commit phase: The transaction is included in a batch and submitted to L1. Anyone can confirm it through L1, usually within a few minutes.

Final stage: The validity proof of the batch is generated and verified on L1 and will never be rolled back. Usually takes tens of minutes.

3. Project financing history

According to Rootdata, Scroll has completed more than 83 million US dollars in financing. The seed round corresponded to a valuation of 40 million US dollars and was completed in October 2021. Investors include: Mask Network, Inception Capital, and A&T Capital. The A round corresponded to a valuation of 350 million US dollars and a financing of 30 million US dollars. It was completed in April 2022. Investors include: Polychain, Bain Capital Crypto, Robot Ventures, Geometry, Ryan Sean Adams, Santiago Roel Santos, Anthony Sassal, Ying Tong Lai, and Carlos Aria. The latest round of financing corresponds to a valuation of 1.8 billion US dollars, with a financing of 50 million US dollars, and was completed in March 2023. Investors include: Polychain, Sequoia China, Bain Capital Crypto, Variant Fund, IOSG Ventures, Newman Capital, Qiming Venture Partners, and Moore Capital Management.

4. Team Information

Cofounder: Ye Zhang is the co-founder of Scroll. He received his undergraduate degree from Peking University and has been working on ZK proof since 2018. Previously, he mainly studied zk proof hardware acceleration and zk cryptographic algorithm principles. Later, his doctorate was also in zk, and he also conducted research at Conflux.

Co-founder: Sandy Peng is the co-founder of Scroll. He graduated from Cambridge University and worked in research at the Hong Kong Securities Regulatory Commission. In 2017, he started working on Web3 project investment. He also worked on game and product projects before. Currently, he is responsible for non-technical work in the team. He also worked at Fission Capital as a blockchain project investment partner.

Co-Founder: Haichen Shen is the co-founder of Scroll and leads the engineering team. He is also an open source enthusiast and has been contributing to multiple open source projects, including zkEVM, Apache TVM, and RAF. Haichen studied at Tsinghua Yao Class for undergraduate and received his Ph.D. from the University of Washington. His research direction is biased towards the field of underlying systems. After graduation, he worked at Amazon on building machine learning systems.

5. Social Data

Official website: https://scroll.io/

Twitter: 813.7K, https://x.com/Scroll_ZKP

Youtube: 22K, https://www.youtube.com/@Scroll_ZKP

6. Token Economic Model:

The total amount of SCR tokens is 1 billion, and 19% of the tokens will be unlocked at the opening, mainly from airdrops and Launchpool, ecology, foundations and a small amount of airdrops.

7. Historical coin statistics on Binance

1) Recent statistics

The frequency of Binance listing coins recently is lower than in the first half of the year, but the enthusiasm of funds participating in new listings remains unabated. This mining has attracted more than 2 billion FUSD and 18.5 million BNB participants.

2) BNB borrowing cost calculation

According to the BNB borrowing cost of Binance Exchange, the SCR payback price is around 2.4U.

3) Comparison with peers

We compared the launch and subsequent development of tokens on Binance Launchpool that are also ZK+L2 ecosystems. STRK and ZK are on similar tracks. Due to different market environments, we believe that the short-term top can be 2.4U or even higher.

Since STRK experienced a spike on the first day of trading, but we counted it as the closing price of the day, if we calculate purely based on the short-term opening price, a top fluctuation of 2-3U is reasonable.

4) Pre-Market Reference

The highest price of SCR in Bitget Pre Market is currently 1.67U, while Kucoin is around 1.65U. Relatively speaking, Bitget's trading volume is close to 1M, with better depth, which can better reflect the pre-market investors' pricing of SCR.

8. Conclusion

We believe that the top of SCR's opening price will exceed the 2U-2.4U fluctuation (since STRK also reached 7U at the time, but closed at 2U on the same day). In the long run, from a valuation perspective, SCR may face a correction.

9. References

Binance Announcement,

https://www.binance.com/en/support/announcement/introducing-scroll-scr-on-binance-launchpool-and-pre-market-22df1ba38f4a4033924a1adecf93735e

Binance Research,

https://www.binance.com/zh-CN/research/projects/scroll

Rootdata, Scroll

https://www.rootdata.com/zh/Projects/detail/Scroll?k=Mjc0Mw%3D%3D