Pencils Protocol has launched a new product section called Auction, which signifies the further improvement of the ecological landscape. The launch of this section is of great importance not only for the Pencils Protocol protocol itself, but also for the Scroll ecosystem.
The community is becoming an important force in driving the development of the crypto market
Since the DeFi Summer, the rise of the on-chain world has been considered a milestone in the crypto industry, as well as an important revolution. In this process, as the facilities have been continuously improved, the community has gradually become an important player in the industry and has gradually moved to the center of the industry stage.
Essentially, the community is a collection of users in the crypto market, a self-organized and decentralized organization that anyone can join to become a member of the crypto community. In this new industry stage, the community has become the largest gathering place for attention value, capital, and users in the industry. As the crypto industry continues to expand, the scale and energy of the crypto community are constantly growing and becoming more united. In fact, from the recent two market cycles, whether it is the Non-Fungible Token explosion, the previous MEME wave, the MEME craze, or the current MEME wave, they are all inseparable from the community's support.
Starting from the MEME craze, the community is constantly weakening the discourse power of VCs and CEXs. Under the new market rules, the community is becoming an important leader in the crypto market, which may be the inevitable result of the rise of the on-chain world and the awakening of decentralization awareness. Therefore, at this stage, for crypto projects to face the market and for the crypto ecosystem to usher in early prosperity, it is essential to establish effective connections with the community and gain their support.
Auction, the key to a new round of explosion for Pencils Protocol
The decentralized LaunchPad is playing an important role in the post-crypto era, as it is an important channel for high-quality projects to establish connections with direct community users before the ecosystem is launched. Especially with the continuous improvement of on-chain infrastructure, on-chain LaunchPad has become more democratized, publicized, transparent, and decentralized, further promoting the community users' trust in this type of launch mode.
Compared to various disorderly Mints, the LaunchPad is relatively better able to screen high-quality projects and become an important channel for community users to make value investments. At the same time, it is also an important channel for high-quality projects to capture early sticky users and loyal users, establish an early community, and empower their entry into the market.
Pencils Protocol is the leading comprehensive DeFi protocol in the Scroll ecosystem. In the early stage, through the launch of Farming and Vaults product sections, it achieved a record-breaking growth of $400 million in TVL on the Scroll single-chain in a short period of time, and attracted more than 700,000 active users, constantly ushering in highlights. In the new stage, for Pencils Protocol, the launch of the Auction product may be the key to driving the ecosystem to a new round of explosion.
Pencils Protocol's Auction is a product section with LaunchPad functionality at its core, which can provide various token auction methods such as English auction, Dutch auction, fixed-price auction, batch auction, and Liquidity Bootstrapping Pool (LBP), and more comprehensively support high-quality projects on the Scroll ecosystem as a springboard to capture capital, users, attention, and market resources from the Scroll ecosystem.
At the same time, the projects launched on Auction adopt a unique listing strategy, that is, the projects are listed on the market through Auction at a price far lower than the actual valuation, in order to ensure that the participating users can all make a profit. The LaunchPad concept of Auction is community-first, where anyone can join in a similar way to a Fair Launch. To ensure fairness and feasibility, Auction is based on the ZK solution of the Scroll underlying layer to maximize the guarantee of fairness and credibility.
An important channel for connecting high-quality projects and the community in the Scroll ecosystem
Pencils Protocol is the largest user pool and traffic pool on Scroll. In the early stage, it has accumulated a large community user base. For the user end, the potential wealth effect of Auction is an important channel for users to extract early opportunities from the Scroll ecosystem, capture ecosystem value, and earn income from the early market. Through the Auction section, it can establish an organic connection between these users and high-quality projects on Scroll, in order to maximize value while continuously forming value growth.
On the Scroll ecosystem project side, Pencils Protocol's Auction has launched a new Ecosystem Hub (ECO), which provides resource support for high-quality projects to enter the market and provides momentum for their continuous and long-term development. Any member who joins the Auction ECO can utilize shared resources and strategic partnerships to build a strong support network for emerging projects. By combining the forces of early project search, public chain fund support, global KOL access, marketing services, security audits, token sales, and venture capital resource integration, it enhances the market position and competitive advantage of ECO members.
For project parties, the ecosystem hub provides capital and growth resources covering major public chains, providing one-stop support for project launch, including KOL promotion, community building, cross-chain integration, contract audits, market-making services, top exchange listings, and VC connections.
In conjunction with the LaunchPad section, the ECO not only improves the launch efficiency of projects and reduces the promotion costs, but also ensures that the experienced investment team within the ECO alliance provides valuable advisory support, guiding the projects to develop the best launch strategy and risk management. Pencils Protocol has officially announced its lineup within the ecosystem hub, and we are pleased to deepen our relationship with partners dedicated to cultivating and expanding high-quality early-stage blockchain projects.
Therefore, for the Auction section, it is not only the first choice for Scroll ecosystem users to capture and discover high-quality projects, but also an important window for high-quality projects on Scroll to establish connections with the community, capture early users, and achieve early launch or even better market-facing. In conjunction with Pencils Protocol's role as an important aggregated yield platform and liquidity hub on Scroll, the value system of Pencils Protocol will continuously form a cycle and generate a flywheel of value growth.
Charging up for the explosion of DAPP tokens
DAPP tokens are the most important value assets in the Pencils Protocol ecosystem. They not only represent equity, such as holding and staking to obtain a series of ecosystem rights (LaunchPad quota priority allocation, new project subscription discounts, etc.), but also the continuous operation of the ecosystem value system will continuously empower the DAPP tokens and accelerate the burning of DAPP tokens to achieve value concentration and growth. Currently, the market capitalization of DAPP tokens is only 2 million, which is verified to be undervalued from the perspective of protocol value narrative, ecosystem, and the ecological position of Scroll and DeFi market. Likewise, the continuous ecosystem progress is also charging up for the listing of Pencils Protocol's DAPP tokens on top-tier exchanges.
Overall, the Pencils Protocol ecosystem is currently well-prepared, and the missing piece is the Auction section. Its launch will become the fuse to drive Pencils Protocol to achieve a new round of growth, and it will also be an important positive factor for DAPP tokens and Pencils Protocol.
From the perspective of the Scroll ecosystem, the launch of the SCR token is an important milestone for the full-scale startup of the ecosystem, but the ecosystem is still in the early stage of development. In the new industry stage where the community dominates the market, what is currently lacking in the Scroll ecosystem? Perhaps it is a LaunchPad with a wealth effect.
Therefore, Pencils Protocol's launch of Auction has filled the blank in the LaunchPad field in the Scroll ecosystem, and it is of great importance to the development of the Scroll ecosystem. By becoming an important launch pad for the Scroll ecosystem, it will become an important component in driving the early prosperity of the Scroll ecosystem and forming a more cohesive community. The two ecosystems will also establish a long-term mutually beneficial and deeply bound relationship.
