The Pencils Protocol has launched a new product segment, Auction, marking a further enhancement of its ecological landscape. The introduction of this segment is extremely important for both the Pencils Protocol itself and the Scroll ecosystem.
The community is becoming a significant force driving the development of the crypto market.
Since the DeFi Summer, the rise of the on-chain world has been regarded as a milestone in the crypto industry and an important revolution. Throughout this process, as facilities continue to improve, the community has gradually become an important player in the industry, moving towards the center stage.
Essentially, the community is a collection of users in the crypto market, a spontaneous and decentralized organization where anyone can join and become a part of the crypto community. In this new phase of the industry, the community has become the largest gathering of attention value, capital, and users, and as the crypto industry continues to expand, the scale and energy of the crypto community are growing stronger and more united. In fact, looking at the recent two market cycles, whether it was the NFT explosion, the previous meme wave, the inscription craze, or the current meme wave, they all relied on the community's support.
Since the inscription craze began, the community has been continuously diminishing the influence of VCs and CEXs. Under the new market rules, the community is becoming an important leader in the crypto market, which may be an inevitable result of the rise of the on-chain world and the awakening of decentralized awareness. Therefore, at this stage, it is essential for crypto projects to establish effective links with the community and gain support to thrive in the market.
Auction is the key to a new round of explosion for Pencils Protocol.
Decentralized LaunchPads are playing an important role in the post-crypto era, serving as a vital channel for quality projects to connect with direct community users before launching in the ecosystem. Especially with the continuous improvement of on-chain infrastructure, on-chain LaunchPads are becoming increasingly democratized, public, transparent, and decentralized, further enhancing community users' trust in this launch method.
Compared to various chaotic Free Mints, LaunchPads are better at filtering quality projects and becoming an important channel for community users to make value investments. They also serve as a crucial pipeline for quality projects to capture early sticky users and loyal customers, establish early communities, and empower their market entry.
Pencils Protocol is a leading comprehensive DeFi protocol in the Scroll ecosystem. In its early stages, it launched Farming and Vaults product segments, achieving an innovative record of $400 million in TVL growth on the Scroll single chain within a short period, while attracting over 700,000 active users and continuously reaching new heights. In this new phase, launching the Auction product may be the key to driving the ecosystem towards a new round of explosion.
The Auction of Pencils Protocol is a product segment centered around LaunchPad functionality, offering various token auction methods such as English auctions, Dutch auctions, fixed-price auctions, batch auctions, and LBP. It comprehensively supports quality projects in the Scroll ecosystem to use it as a springboard to capture funds, users, attention, and market resources from the Scroll ecosystem.
At the same time, the projects launched through Auction adopt a unique listing strategy, where the listed projects are offered to the market at a price significantly lower than their actual valuation, ensuring that participating users can achieve profits. The philosophy of Auction's LaunchPad is community-first, allowing anyone to join in a manner similar to Fair Launch. To ensure fairness and feasibility, Auction is based on Scroll's underlying ZK solution, maximizing fairness and trustworthiness.
An important channel for linking quality projects and the community in the Scroll ecosystem.
Pencils Protocol has the largest user pool and traffic pool on Scroll. In its early stages, it accumulated a massive community user base. For users, the potential wealth effect of Auction serves as an important channel for them to explore early opportunities, capture ecological value, and earn income from the early market. Through the Auction segment, it can establish organic links between these users and quality projects on Scroll, maximizing value while continuously generating value growth.
On the project side within the Scroll ecosystem, Pencils Protocol's Auction has launched a new Ecosystem Hub (ECO), providing resource support for quality projects entering the market and driving their sustained, long-term development. Any member joining the Auction ECO can leverage shared resources and strategic partnerships to create a strong support network for emerging projects. By combining early project searches, public chain fund support, global KOL outreach, marketing services, security audits, token sales, and venture capital resource integration, the ECO members' market position and competitive advantage can be enhanced.
For project parties, the ecosystem hub provides funding and growth resources covering major public chains, offering one-stop support for project launches, including KOL promotion, community building, cross-chain integration, contract auditing, market-making services, listings on top exchanges, and VC connections.
In conjunction with the LaunchPad segment, the ECO not only improves project launch efficiency and reduces promotion costs but also ensures that experienced investment teams within the ECO alliance provide valuable consulting support, guiding projects to develop optimal launch strategies and risk management. Pencils Protocol officially announces its lineup at the center of the ecosystem, and we are excited to deepen our relationships with partners committed to nurturing and expanding high-quality early blockchain projects.
Thus, for the Auction segment, it is not only the first choice for Scroll ecosystem users to capture and discover quality projects but also an important window for quality projects on Scroll to establish links with the community, capture early users, and achieve early launches, even better positioning in the market. Coupled with Pencils Protocol's role as an important aggregation yield platform and liquidity hub on Scroll, the value system of Pencils Protocol will continuously form a cycle and create a value growth flywheel.
Building momentum for the DAPP token explosion.
The DAPP token is the most important value asset in the Pencils Protocol ecosystem. It not only represents rights, such as holding stakes and obtaining a series of ecological rights (priority allocation for LaunchPad quotas, discounts for new listings, etc.), but also the operation of the ecological value system, where multiple segments will continuously empower the DAPP token and accelerate its destruction to achieve value concentration and growth. Currently, the DAPP token has a market cap of only 2 million, which is verified to be undervalued from both the protocol value narrative and ecological perspective, as well as in the context of Scroll and the DeFi market. Similarly, ongoing ecological progress is also building momentum for the DAPP token to launch on top-tier exchanges.
Overall, the Pencils Protocol ecosystem is currently well-prepared, only lacking the right catalyst, which is the Auction segment. Its launch will become the trigger for driving Pencils Protocol to achieve a new round of growth, and it will also be a significant boon for the DAPP token and Pencils Protocol.
From the perspective of the Scroll ecosystem, the launch of the SCR token is an important sign of the ecosystem's comprehensive activation, although it is still in its early developmental stages. In this new industry phase where the community leads the market, what is currently most lacking in the Scroll ecosystem? Perhaps it is a LaunchPad launcher with wealth effects.
Therefore, the launch of Auction by Pencils Protocol fills the gap in the LaunchPad field within the Scroll ecosystem and is particularly crucial for its development. By becoming an important launchpad for the Scroll ecosystem, it will be a vital component in driving early prosperity and forming a more cohesive community, establishing a long-term mutually beneficial and deeply bonded relationship between the two ecosystems.