Pencils Protocol is the largest comprehensive DeFi platform in the Scroll ecosystem. With the DAPP token entering the market, the economic system of the Pencils Protocol ecosystem will also begin full operation. Currently, the DAPP token has been successively launched on mainstream trading markets such as Gate, Kucoin, Bitget, and Coinone, allowing global users to participate in the construction of the Pencils Protocol ecosystem by holding DAPP tokens. As the Pencils Protocol ecosystem expands its business scope, DAPP will continuously receive empowerment.
In fact, the DAPP token currently belongs to the small market cap category, with a circulating market value of only $2.95 million and an FDV of around $14 million. The current status of the token is severely inconsistent with its fundamentals and business aspects. When we look at the previous round of valuations, similar projects like Yearn Finance and Alpaca Finance have token market caps generally above $1 billion, indicating that there is still significant growth potential for DAPP itself.
It is evident that DAPP is still in the very early stages of development, and there are two new opportunities that will help DAPP tokens explode: one is the full launch of the Scroll ecosystem, and the other is the in-depth expansion of Pencils Protocol in both ecological and business aspects.
The full launch of the Scroll ecosystem: The catalyst for DAPP token explosion
Scroll is a notable ecosystem in the zk-Rollup camp, and before the TGE of the SCR token, the DeFi system of this ecosystem had not been fully opened. With the recent launch of the SCR token and its further introduction to the market, it has become the final piece of the puzzle driving the Scroll ecosystem towards prosperity.
Therefore, the further improvement of the Scroll ecosystem means that more and more developers, dApps, funds, and users will flock to the Scroll ecosystem.
Pencils Protocol is the leading project in the Scroll ecosystem. It is not only the largest comprehensive DeFi platform and yield aggregator in Scroll but also the largest liquidity hub and LaunchPad platform. Users can stake LRT tokens through the Farming section, engage in leveraged mining through Vaults, participate in staking on the Mind Network, and soon utilize the active yield feature of Vaults and participate in Auctions on the LaunchPad to capture income. Pencils Protocol will serve as a comprehensive and important income source for the Scroll ecosystem.
For projects in the Scroll ecosystem, they need to capture users, funds, and liquidity. Pencils Protocol, backed by over 700,000 active users, is the largest attention value hub on Scroll. Its Vaults section is also the most important liquidity hub on Scroll, and for emerging projects looking to enter the Scroll ecosystem, the Auction launchpad is the optimal choice. Therefore, whether for Scroll ecosystem projects or users, Pencils Protocol can meet needs and provide deep empowerment.
The DAPP token, as an important equity asset in the Pencils Protocol ecosystem, is also a significant functional asset within the ecosystem. It will be continuously empowered in this process, with its necessity constantly increasing, becoming an important "value container" for both the Pencils Protocol ecosystem and the Scroll ecosystem.
Overall, the full launch of the Scroll ecosystem represents the comprehensive operation of the ecological value flywheel, and Pencils Protocol will thus welcome new opportunities, which will become the catalyst for the explosion of DAPP tokens.
Expansion of the Pencils ecosystem and business: Continuously empowering DAPP's explosion
The expansion of the Scroll ecosystem has sounded the horn for DAPP's explosion, while the expansion of the Pencils Protocol ecosystem and business will continuously provide momentum for DAPP's explosion.
In fact, with the gradual introduction of Farming and Vaults product sections to the market, Pencils Protocol is now able to meet users' yield needs and has become an important part of Pencils Protocol's early growth and capturing early seed users. At the same time, Pencils Protocol has also begun to gradually establish protocol revenue based on the aforementioned sections.
In this new development phase, Pencils Protocol is about to make new progress in its business aspect, with the Auction section now available to the market. An important part of the Auction product section is the wealth-effect LaunchPad, which is unique in its listing strategy, where listed projects will enter the Auction at a price far below their true valuation, allowing users to participate in a manner similar to Fair Launch. Meanwhile, the Auction has also launched the Ecosystem Hub, providing funding and growth resources covering major public chains for ecological projects, offering one-stop support for project launches, including KOL promotion, community building, cross-chain integration, contract auditing, market-making services, top exchange listings, VC connections, and more.
The Auction section will serve as an important launchpad and pipeline for Scroll ecosystem projects to connect with the market and community users, and it holds significant importance for the prosperity and development of the Scroll ecosystem.
In addition to the LaunchPad section, the Auction is also expected to introduce a series of auction functions in the future, such as early sales of quality assets, equity assets, and RWA assets, to help Pencils Protocol and the Scroll ecosystem bring in more quality assets, potentially becoming an important pipeline for connecting with the Web2 world.
It is foreseeable that the Auction is a major section for empowering DAPP tokens. Most intuitively, holding and participating in staking DAPP will grant a series of ecological rights, such as priority participation, discounts, and more. This will endow DAPP with more practical functions and enhance its market circulation, increasing its necessity. Additionally, the launch of the Auction will further increase protocol revenue, bringing new opportunities for DAPP's destruction. Currently, the Auction LaunchPad is about to welcome its first Launch project, Rho Markets, with the Launch Pool staking set to open soon (app.pencilsprotocol.io/auctions). User participation in DAPP staking will be related to the quota of the first Launch project.
Moreover, the DAPP staking activity in the Farming product has already started on November 12 and will end on November 25, with a non-activity period APY of 20%, while the first week's APY during the activity will be doubled to 40%, and the second week will be 1.5 times, or 30%.
As an important launchpad for the Scroll ecosystem, the Auction will further focus more attention and is expected to bring more derivative value to DAPP, such as airdrops. Thus, 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 BTCFi. Currently, it has become one of the largest BFTFi LRT staking protocols in this field through cooperation with a series of LRT protocols. By expanding into the BCTFi field, Pencils Protocol is expected to become one of the drivers unlocking the trillion-dollar value of the BTC system and bringing this value into the ecosystem to empower DAPP.
In the long term, Pencils Protocol will continue to delve into the Scroll ecosystem and develop towards a multi-chain trend, which will provide opportunities for the long-term value capture of DAPP. Therefore, the full launch of the Scroll ecosystem will be a new opportunity for both the Pencils Protocol ecosystem and DAPP.