Cours de Pencils Protocol Token

Pencils Protocol is a decentralized platform that provides auction services for blockchain assets and real-world assets (RWAs). It focuses on yield aggregation and offers leveraged farming services, using Scroll’s zero-knowledge technology. The protocol aims to become a key player in the Scroll ecosystem, offering products like farming, enhanced liquidity pools, synthetic assets, NFT launches, and on-chain loyalty programs.

The native token of Pencils Protocol is $DAPP. This token is primarily used for governance, staking, auction platform collateral, and accessing various benefits within the ecosystem. Staking $DAPP allows you to participate in farming, gain access to exclusive strategy products, and use it as collateral for auctions. The token is now available for purchase, but users are advised to be cautious of fraudulent websites during the buying process​.

Pencils Protocol is a decentralized platform on the Scroll ecosystem that offers farming, auctions, and staking services. It provides opportunities to deposit assets like ETH, WBTC, stablecoins, and its own token, $DAPP. Here's how it works:

1. Farming: You can deposit tokens into Pencils Protocol's vaults, where your assets are pooled and lent to borrowers. This generates yield from the interest paid by borrowers. The interest rate is dynamic, adjusting based on the pool's utilization to reward depositors fairly. In addition to this yield, you earn points like Pencils and Scroll points that unlock extra benefits on the platform.

2. $DAPP Token: $DAPP is used for governance, staking, and collateral within the platform. Staking $DAPP gives you privileges like higher leverage in vaults, access to exclusive products, and participation in auctions. By staking, you also receive $pDAPP, which can be further staked or used to provide liquidity.

3. Auctions: To list assets on the auction platform, sellers must stake $DAPP as collateral, ensuring security and community oversight in the auction process.

4. Point System: Early adopters of the protocol receive Pencils points linked to $DAPP, granting access to farming methods and exclusive policies, fostering community engagement.

Through these mechanisms, Pencils Protocol aims to maximize asset utilization and provide rewards to its users while expanding the Scroll ecosystem.

Pencils Protocol was launched in March 2024 as a decentralized platform for auction services, yield aggregation, and staking in the Scroll ecosystem. Initially known as PenPad, it later rebranded to Pencils Protocol to reflect its expanded offerings beyond just an IDO launchpad. The protocol focuses on leveraging Scroll's zero-knowledge technology to provide enhanced DeFi services. By September 2024, it had achieved a total value locked (TVL) of approximately $319 million, becoming the top DeFi platform in the Scroll ecosystem.

The project is backed by prominent investors such as OKX Ventures, Animoca Brands, and Gate Labs. It has a comprehensive roadmap for 2024, starting with the platform's launch and its staking and vault product beta in Q2. In Q3, the protocol introduced features like diversified launch products and the Pencils Protocol Shop for multi-chain transactions. In Q4, it focuses on community-led initiatives and providing technical support for new projects.

The protocol uses its $DAPP token for governance, collateral in auctions, and staking privileges. You earn rewards and benefits within the ecosystem by participating in staking and farming activities. The Pencils points system also plays a crucial role, providing additional incentives and privileges to community members.

The Pencils Protocol (DAPP) token serves multiple purposes within the Pencils Protocol ecosystem:

1. Governance: It allows you to participate in community voting, influencing decisions related to development, interest rates, policies, and emergency measures.

2. Token Farming: By staking $DAPP, you earn $pDAPP, an equity certificate token at a 1:1 ratio. Staking $pDAPP can generate additional subsidies and liquidity on decentralized exchanges.

3. Auction Collateral: If you want to list assets on the auction platform, you need to stake $DAPP as collateral, which helps safeguard against malicious activities. If misconduct occurs, the staked $DAPP is redistributed to community members.

4. Vault Privileges: Staking $DAPP gives you access to benefits like higher leverage and priority access to limited products in the protocol's vaults.

5. Financial Services: $DAPP is integrated into various DeFi products, allowing you to provide liquidity, borrow, or stake to earn rewards.

6. Point System: Early adopters earn Pencils points tied to $DAPP, unlocking new farming methods, exclusive policies, and other benefits.

7. Shop: You can use $DAPP in the virtual shop to trade NFTs, real-world assets (RWAs), and other digital products within the ecosystem.

In addition, you can trade Pencils Protocol token against other cryptocurrencies listed on the KuCoin Spot Market after doing your own research (DYOR). Based on your investment goals and risk tolerance, you can buy, sell, or HODL $DAPP in your portfolio.

The total supply of Pencils Protocol token is 100 million DAPP tokens, distributed as follows:

> Treasury (10%): 10 million DAPP with an 18-month linear vesting schedule.

> Early Supporters (16%): 16 million DAPP, with 15% unlocked at the Token Generation Event (TGE) and a 12-month linear vesting.

> Public Sale (20%): 20 million DAPP available for sale.

> Ecosystem Incentives (20%): 20 million DAPP with an 18-month linear vesting period to support ecosystem growth.

> Community (15%): 15 million DAPP allocated to the community, vested over 18 months.

> Core Contributors and Advisors (12%): 12 million DAPP, with a 3-month cliff and 18-month vesting period.

> Airdrop (3%): 3 million DAPP for community rewards.

> Marketing and Liquidity Provision (4%): 4 million DAPP to support marketing and liquidity initiatives.

To participate in the Pencils Protocol (DAPP) airdrop, follow these steps:

1. Visit the Pencils Protocol Platform: Go to the Pencils Protocol website and connect your wallet. Make sure you switch to the Scroll network.

2. Stake Assets: Deposit at least $100 worth of supported assets like ETH, USDC, USDT, rsETH, puffETH, or Stone. For every $100 you stake, you earn 1 Pencil point per hour, which increases your eligibility for the airdrop. Holding the stake for longer periods can earn you badges, boosting your rewards.

3. Earn Points: Participate in various activities on the platform, such as marketing, ecosystem contributions, or ambassador programs, to earn more Pencil points. These points grant you access to favorable token allocations and priority placement in the airdrop.

4. Verify Your Identity: On the profile page, verify your identity using platforms like Google, Twitter, GitHub, or Aspecta to mint the SOUL NFT. Completing the Pencils ZK Verification after the specified date is necessary to qualify for the airdrop.

5. Complete Galxe Tasks: Engage in additional tasks released by Pencils Protocol on Galxe for more points and rewards.