Pencils Protocol is the largest comprehensive DeFi platform in the Scroll ecosystem. With the DAPP token facing the market, the Pencils Protocol ecosystem will also usher in full operation. Currently, the DAPP token has been successively launched on mainstream trading markets such as Gate, Kucoin, Bitget, and Coinone, and global users can participate in the construction of the Pencils Protocol ecosystem by holding the DAPP token. As the Pencils Protocol ecosystem expands in business, the DAPP will continue to be empowered.
In fact, the DAPP token is still a small-cap token, with a current circulating market value of only $2.95 million and an FDV of around $14 million, which is seriously inconsistent with its fundamentals and business. When we look at the previous valuation, similar projects like Yearn Finance and Alpaca Finance have token market values basically above $1 billion, so there is still huge growth potential for the DAPP itself.
It can be seen that the DAPP is still in the very early stage of development, and there are two brand 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 Pencils Protocol in the ecosystem and business.
The full launch of the Scroll ecosystem: the fuse for the explosion of the DAPP token
Scroll is a technically prominent ecosystem in the zk-Rollup camp, and the DeFi system of this ecosystem has not been fully activated before the SCR token TGE. With the recent launch of the SCR token and its further market-oriented approach, it has become the last piece of the puzzle to drive the prosperity of the Scroll ecosystem.
Therefore, the further improvement of the Scroll ecosystem system means that more and more developers, dApps, capital, and users will flow into the Scroll ecosystem.
Pencils Protocol is a leading project in the Scroll ecosystem, not only the largest comprehensive DeFi platform and yield aggregator in Scroll, but also the largest liquidity hub and LaunchPad platform. Users can participate in staking LRT tokens in the Farming section, leverage mining through Vaults, participate in staking on the Mind Network, and soon use the active yield function of Vaults and participate in the LaunchPad Auction to capture income. Pencils Protocol will serve as a comprehensive and important income endpoint for the Scroll ecosystem.
For projects in the Scroll ecosystem, they need to capture users, capital, and liquidity. Pencils Protocol, backed by more than 700,000 active users, is the largest attention value hub on Scroll, and its Vaults section is also the most important liquidity hub on Scroll. For emerging projects to enter the Scroll ecosystem, the Auction launch pad is the best choice. So whether it is Scroll ecosystem projects or users, Pencils Protocol can meet their needs and deeply empower them.
The DAPP token, as an important equity asset and functional asset in the Pencils Protocol ecosystem, will be continuously empowered in this process, with increasing rigid demand, and become an important "value container" in the Pencils Protocol ecosystem and even the Scroll ecosystem.
Overall, the full launch of the Scroll ecosystem represents the full operation of the ecosystem value flywheel, and Pencils Protocol will also usher in a brand new opportunity, which will become the fuse for the explosion of the DAPP token.
The expansion of the Pencils ecosystem and business: continuing to empower the explosion of DAPP
The expansion of the Scroll ecosystem has sounded the trumpet for the explosion of DAPP, and the expansion of the Pencils Protocol ecosystem and business will provide continuous power for the explosion of DAPP.
In fact, with the successive launch of the Farming and Vaults product sections, Pencils Protocol is currently able to meet the income needs of users and become an important part of Pencils Protocol's early growth and capture of early seed users. At the same time, Pencils Protocol has also begun to gradually establish protocol revenue based on the above sections.
In the new development stage, Pencils Protocol will also see new progress in its business. The Auction section has already been launched to the market. An important part of the Auction product section is the wealth-effect LaunchPad, which is unique in its listing strategy, with projects listed at far below their true valuation, allowing users to participate in a similar way to a Fair Launch. At the same time, Auction has also launched the Ecosystem Hub, providing capital and growth resources covering major public chains for ecosystem projects, and providing one-stop support for project launch, including KOL promotion, community building, cross-chain integration, contract auditing, market making services, leading exchange listing, and VC connection.
The Auction section will serve as an important launch pad and channel for Scroll ecosystem projects to reach the market and establish connections with community users, and it is also of great importance to the prosperity and development of the Scroll ecosystem.
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 the Scroll ecosystem introduce more high-quality assets, and it is expected to become an important channel for connecting with the Web2 world.
It can be foreseen that Auction is a major empowerment section for the DAPP token, the most intuitive being that holding and participating in the staking of DAPP will enjoy a series of ecosystem rights, such as priority participation and discounts. This will endow the DAPP with more practical functions and increase its market liquidity and rigid demand. At the same time, the launch of Auction will also further increase the protocol revenue, bringing a brand new opportunity for the burning of DAPP. Currently, the Auction LaunchPad is about to welcome its first Launch project Rho Markets, and the Launch Pool staking will soon be opened (app.pencilsprotocol.io/auctions), and the user's participation in DAPP staking will be related to the quota of the first Launch project.
As an important launch pad for the Scroll ecosystem, Auction will also further focus more attention, and is expected to bring more derivative value to DAPP, such as airdrops. So the Auction section will be a new opportunity for the Pencils Protocol ecosystem to achieve growth.
In addition to the Auction product section, Pencils Protocol will also continue to expand into the BTCFi field. Currently, it has become one of the largest BFTFi LRT staking protocols through cooperation with a series of LRT protocols in this field. By expanding into the BTCFi field, Pencils Protocol is expected to become one of the drivers to unlock the value of the trillion-dollar BTC system and bring it into the ecosystem to empower the DAPP.
In the long run, Pencils Protocol will also continue to dig deeper into the Scroll ecosystem and develop towards multi-chain trends, which will provide opportunities for the long-term value capture of DAPP. So the full launch of the Scroll ecosystem will be a brand new opportunity for both the Pencils Protocol ecosystem and the DAPP.
