The Pencils Protocol has launched a new product section called Auction, indicating further improvement of the ecological landscape. The introduction of this section is extremely important for both the Pencils Protocol itself and the Scroll ecosystem.
The community is becoming a major force in the development of the crypto market
Since DeFi Summer, the rise of the on-chain world has been regarded as a milestone in the crypto industry and an important revolution. As facilities continue to improve during this process, 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 place for attention value, capital, and users, and as the crypto industry continues to expand outward, the scale and energy of the crypto community are growing stronger and more united. In fact, looking at the last 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 weakening 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 as the crypto ecosystem enters early prosperity.
Auction, 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 crucial channel for quality projects to establish connections 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 relatively better at filtering quality projects and becoming an important channel for community users to engage in value investment. They also serve as a vital pipeline for quality projects to capture early sticky and loyal users, 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 sections, achieving a record growth of $400 million in TVL on the Scroll single chain in a short period while attracting over 700,000 active users, 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 section centered around LaunchPad functionality, offering various token auction methods such as English auctions, Dutch auctions, fixed-price auctions, batch auctions, and LBP, providing comprehensive support for 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 projects are offered to the market at prices far below their actual valuations, 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 connecting quality projects in the Scroll ecosystem with the community
Pencils Protocol has the largest user pool and traffic pool on Scroll. In its early stages, it accumulated a large community user base. For users, the potential wealth effect of Auction is an important channel for them to explore early opportunities, capture ecological value, and earn income from the early market. Through the Auction section, it can establish organic links between this group of 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 continuous, 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 market position and competitive advantage of ECO members 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, top exchange listings, and VC connections.
In conjunction with the LaunchPad section, 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 in formulating optimal launch strategies and risk management. Pencils Protocol officially announces its lineup within the ecosystem center, and we are excited to deepen our relationships with partners dedicated to nurturing and expanding high-quality early blockchain projects.
Thus, for the Auction section, 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 connections with the community, capture early users, and achieve early launches, even better positioning themselves 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 sections 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 considered undervalued from the perspectives of protocol value narrative, ecosystem, and the ecological position within Scroll and the DeFi market. Similarly, ongoing ecological progress is also building momentum for the DAPP token's listing on top-tier exchanges.
Overall, the Pencils Protocol ecosystem is currently well-prepared, only lacking the right impetus, which is the Auction section. Its launch will become the catalyst 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 the early stages of development. 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 of the Scroll ecosystem and is particularly crucial for the development of the Scroll ecosystem. By becoming an important launch pad for the Scroll ecosystem, it will be a vital component in driving early prosperity and forming a more cohesive community within the Scroll ecosystem, establishing a long-term mutually beneficial and deeply bonded relationship between the two ecosystems.