Get Acquainted with Pencils Protocol, A Concise Introduction

Bittime - Pencils Protocol, what is it? This is an article that will be a brief introduction to understanding the Pencil Protocol.

Pencils Protocol is a decentralized platform with advanced technology that offers auction services for assets and RWA on the Blockchain.

What is Pencils Protocol?

Pencils Protocol is a decentralized platform that brings the next generation of DeFi technology. Previously, Pencils Protocol was called PenPad.

Pencils Protocol is not just a new name to replace PenPad. More than that, Pencils Protocol represents a new era of DeFi innovation and integration .

Last May, Pencils Protocol successfully introduced its two main functions, namely:

1. Staking and Liquid Staking
2. Liquidity Vaults

The function containing the interesting features above has increased, thereby strengthening the role of Pencils Protocol as an important component in the Scroll ecosystem. 

Pencils Protocol also introduced Pencil, a rewards system designed to recognize and reward supporters and community members.

Check Today's Crypto Market:

Pencils Protocol Background

Pencils Protocol has had a very successful launch thanks to their community support and hard work. 

This project is one of the few projects in the current market cycle to achieve a community oversubscription level of over 250%. 

Also Read: What is Hamster Kombat? How to Play Hamster Kombat Game?

Following this successful launch, Pencils Protocol's primary focus has shifted to leveraging synergies between the launchpad and staking to fundamentally serve the Scroll ecosystem. 

By exploring how these elements are naturally integrated in Pencils, they enable dynamic interactions between different functions, which is an innovation. 

Their ambition is to become the main gateway to bridge total value locked (TVL) across the Scroll ecosystem. 

Pencils Protocol not only connects ideas and innovation but also channels and optimizes capital flows within the ecosystem, ensuring seamless integration and interaction between various funds and projects.

Staking and Liquid Staking on Pencils Protocol

It cannot be denied that liquid staking is one of the hottest topics in the Web 3.0 industry. 

Total Value Locked (TVL) in liquid staking projects has jumped from $12.28 billion in March 2023 and to more than $62 billion in March 2024.

The Pencils Protocol staking product will be launched in two stages:

Stage 1: Introducing traditional staking to the platform

Stage 2: Introducing LSD (Liquid Staking Derivatives) and Retaking Product Lines

Also Read: What is TLX Finance? Decentralized Platform with High Leverage

In initial stage 1, users can stake five asset categories:

• Scroll Token (when Scroll is launched)
• Pencil Protocol Token
• ETH/ETH Derivatives
• BTC/BTC Derivatives
• Stablecoins

Other high-quality ERC20 assets in the Scroll ecosystem will also be added gradually.

Users will be able to receive “pTokens” when they stake those tokens on Pencils Protocol. A “pToken” is a “staking certificate,” representing the staked token. 

However, these tokens are ERC20 tokens that can earn additional yields in DeFi pools on top of the yields earned by the base token.

Also Read How to Buy Crypto:

Understanding Pencils Protocol Vault

Pencils Protocol Vaults is a liquidity farming tool. Users can deposit tokens, such as "pToken", and collect LP tokens. 

Pencils Protocol works with top DEX on Scroll to help facilitate these pools and provide Vault users with access to liquidity.

Pencils Protocol Vaults, as a collection of liquidity pools on Scroll, creates a decentralized liquidity market. 

Also Read: What is StakeDAO (SDT) Token? Gateway to Profitable DeFi Opportunities

Different groups may set different rates and leverage ratios to compete for depositors. 

The Vaults Contract will automatically allocate the funds necessary to create a unified liquidity layer on Scroll.

Pencils Protocol will then reward early adopters with multiple revenue streams. 

Check Crypto Prices Today:

Users will not only earn base yields from their deposits and staked LP tokens, but they will also receive points from Pencils Protocol, Scroll, and DEXs that partner with Pencils Protocol. 

Pencils Protocol Vaults v2 will expand its partnership with the top liquid staking protocol, giving Vault users more ways to earn rewards. 

Users will be able to earn reward points from Eigen Layer , top DEXs on Scroll, and LRT projects.

By offering a diverse and competitive set of rewards, Pencils Protocol aims to attract more users and assets to Pencils Protocol Vaults to become the platform of choice for restaking and wealth creation on Scroll.

How to Buy Crypto on Bittime

You can buy and sell crypto assets in an easy and safe way through Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.

Also Read:

How to Play Hamster Kombat, Get Attractive Prizes from This Complete Guide

Hamster Kombat Airdrop, Read the Complete Guide

Getting to Know Ethermail: Email Transformation in the Web3 Era

DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.