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Pencils Protocol is a native project of the Scroll ecosystem. The project is positioned as a one-stop revenue aggregator and auction platform. In terms of functions, it integrates Launchpad, unified asset aggregation and distribution, leveraged income and other functions, aiming to maximize the asset utilization of users. Recently, the TVL of Pencils Protocol exceeded 300 million US dollars, becoming the project with the highest TVL in the Scroll ecosystem. Not only that, Pencils Protocol is also the first DeFi protocol in the crypto industry that is based only on a single chain. The TVL soared from 200 million US dollars to 300 million US dollars in just 24 hours, breaking history!

Pencils Protocol: Single-chain DeFi protocol TVL record maker

In fact, Pencils Protocol is already the largest DeFi system in the Scroll ecosystem, and is in a leading position. Focusing on the Pencils Protocol itself, it has created a one-stop aggregated income system, which is the first aggregation system in the industry that combines DeFi + Launchpad + Auction functions, bringing users multiple income options.

From the perspective of the DeFi system, it has created an extremely innovative DeFi system featuring leveraged mining.

From the perspective of the leveraged income section, it includes two ports, namely the pledge port and the leveraged lending mining port. The pledge port supports users to pledge assets and obtain income from the pool, which serves as a reserve pool for the lending port. On the lending port, users can borrow larger funds from the pledge pool in the form of leveraged lending and directly conduct liquidity mining to increase income.

The new leveraged mining system is helping the Scroll ecosystem to capture liquidity more effectively. By connecting with different on-chain protocols, Pencils Protocol will become an efficient liquidity center for the Scroll ecosystem. Currently, the staking end of Pencils is connected to a series of LSD/LRT protocols, which can provide long-term support for various LRT, LSD protocols and LST assets.

On the staking side, Pencils Protocol has reached cooperation with a number of LRT protocols such as EtherFi, StakeStone, KelpDAO and Puffer, and supports the staking of LRT assets such as STONE/pufETH/wrsETH, while capturing Scroll Marks, Pencils points, EigenLayer points, StakeStone W1 Points, Kelp Miles, Puffer Points and other series of point rewards through a one-fish-many-kill approach. At the same time, Pencils Protocol is also expanding into the BTC ecosystem. In addition to supporting the staking of WBTC tokens, it has also reached cooperation with Solv Protocol and Free.tech to further support the staking of solvBTC.b assets while providing users with multiple benefits, so as to continuously expand the ecological boundaries into potential areas.

Through a series of layouts, the narrative of Pencils Protocol is also being highly recognized by the market. At present, the TVL data of Pencils Protocol has exceeded 300 million US dollars (the total TVL of the Scroll ecosystem is about 775 million US dollars, and Pencils Protocol accounts for half of it), and has become the top DeFi project with the highest TVL data in the Scroll ecosystem. Not only that, according to Defillama data, Pencils Protocol TVL data ranks first in the Scroll ecosystem in terms of weekly and monthly increments and growth rates.

At the same time, Pencils Protocol is currently only built in the Scroll ecosystem, which means it is only a single-chain protocol. From an industry perspective, Pencils Protocol is a rare on-chain project in the industry that can soar from $200 million to $300 million in just 24 hours (its pledge has been open for less than 3 months), and it is expected to break the record.

In addition, based on the user's contribution and activity, Pencils Protocol will continue to provide long-term incentives to users. For example, Pencils Protocol will launch a series of high-quality assets in the Launchpad section through IDO and other methods in the future, and users will

The effective duration of the above-mentioned pledge, the size of the funds, and the participation in Launchpad will all be used as the basis for their contribution to the allocation of quotas. The higher the contribution value, the more allocations they will receive. This will greatly increase the stickiness of the above-mentioned users to participate in Pencils Protocol and keep the TVL data strong.

As the Pencils Protocol ecosystem continues to expand, its TVL data continues to grow, which means that the current valuation of Pencils Protocol is still seriously underestimated (especially since its ecosystem token PDD has not yet TGE).

Is $300 million TVL just the beginning? Pencils Protocol will continue to grow wildly

In fact, Pencils Protocol’s TVL exceeding $300 million is just the beginning. It is still continuing its diversified layout to continuously expand the scale of ecological funds.

l Siphoning value from the BTCFi space

Currently, Pencils Protocol is actively expanding in the BTCFi field. As mentioned above, Pencils Protocol now supports staking of wBTC tokens. At the same time, Pencils Protocol has also begun to cooperate with Solv Protocol and Free.tech to support the staking of SolvBTC.b assets in Pencils Protocol.

Solv Protocol is a basic income platform based on Delta neutral strategy, providing services for increasing income of currency-based assets. Among them, SolvBTC.b obtained by depositing BTC into Solv Protocol can enjoy strategy-based income, and the strategy income comes from a variety of Delta neutral strategies denominated in BTC on platforms such as Binance, Bybit and GMX. Through cooperation with Pencils Protocol, users can pledge SolvBTC.b assets to obtain strategy income, and can further obtain interest income from Pencils Protocol, and on this basis, can further obtain 8 times Solv XP ​​points, 4 times Pencils points and Scroll Marks points rewards.

It is worth mentioning that before August 17, users who bridge SolvBTC.b to the Scroll ecosystem through Free.tech will enjoy a 0 handling fee discount. Driven by a series of incentives and preferential policies, many users have participated in the SolvBTC.b staking of Pencils Protocol.

While Pencils Protocol is firmly in the first echelon of the Scroll ecosystem, its extensive cooperation with a series of BTCFi ecological protocols will promote its in-depth expansion into the BTCFi field. It is expected to help Bitcoin fully release its value and carry a market of more than 100 billion US dollars. This trend is expected to promote the Pencils Protocol ecosystem to further achieve large-scale growth in the short term.

l Multi-chain trend development

Scroll is currently a major battlefield for the development of the Pencils Protocol ecosystem, and in the long run, multi-chain development will remain the main theme of the Pencils Protocol ecosystem. As the industry's first DeFi+Auction ecosystem, it is driving the on-chain revenue ecosystem to a new paradigm. The expansion of multi-chain is expected to drive Pencils Protocol to continuously replicate the achievements of the Scroll ecosystem, and is expected to far surpass old ecosystems such as MakerDAO in terms of imagination and development potential.

Overall, the Pencils Protocol ecosystem is experiencing rapid growth, and the $300 million TVL is just the beginning.