🔥 CRYPTO CLASS: PENCILS PROTOCOL | TOTAL VALUE LOCKED $32.55M+ | TOTAL ACTIVE USERS 16.8K+

PENCILS PROTOCOL: The Auction-Fueled, Yield-Driven Scroll Powerhouse Taking DeFi by Storm

Class is now in session — and this isn’t your average crypto 101. This is Professor Crypto, reporting live with the next monster project climbing the DeFi ranks. Buckle up, because we’re diving deep into Pencils Protocol, a project that’s not only turning heads, but flipping the entire Scroll ecosystem upside down. With a Total Value Locked (TVL) sitting at over $32.55M and 16.8K+ active users, this one’s making serious noise in the Web3 halls of power.

"An all-inclusive auction platform and yield aggregator to deliver the next generation experience for Scroll users."

Let’s crack open the textbook of truth and take a tour through the infrastructure, partners, and explosive potential of this DeFi juggernaut. Spoiler alert: Pencils Protocol is not here to play — it’s here to dominate.

Scroll + Pencils: Built for Maximum Utility

Pencils Protocol is native to the Scroll ecosystem — an Ethereum zkEVM L2 solution designed for scaling, speed, and seamless interoperability. And what’s Pencils’ mission?

• Streamline token launches through decentralized auctions.

• Standardize and unify yield aggregation in a fragmented DeFi landscape.

• Empower users with multi-layered rewards, liquid staking, and real asset auctions.

Scroll brings the highway. Pencils brings the race cars.

The All-in-One Yield and Auction Engine

Pencils Protocol isn’t a one-trick pony. It’s a multi-headed beast offering:

• Staking: Users stake ETH and other assets to gain allocation and yields powered by a secure and dynamic interest model.

• Vaults: Offers strategies like leveraged yield farming, synthetic assets, delta-neutral portfolios, and exotic options.

• Auctions: A DeFi marketplace for token sales and RWA auctions — optimized for clarity, engagement, and reward distribution.

Pencils is integrating all the tools needed to make your assets work harder and smarter. Forget idle bags — Pencils activates everything.

Multi-Layered Rewards: Staking Meets Gamification

Pencils Protocol takes a gamified approach to incentivization that keeps the ecosystem sticky. By staking, users unlock:

• Up to 3x Pencils points

• Up to 3x Stone points from StakStone

• Up to 3x Kelp Miles from Kelp DAO

• Up to 2x Puffer Points from Puffer Finance

Get rewarded for supporting the protocol, score exclusive badging, and even earn first dibs on token allocations and merch drops. This protocol is as much DeFi as it is Club Rewards 3.0.

Numbers Don’t Lie: TVL, Adoption, and Community Engagement

Active user base? 16.8K+.

Total Value Locked? Over $32.55 million and rising.

Top decentralized app on Scroll? You guessed it — Pencils.

The traction is fierce — and verifiable on-chain.

Security & Transparency: Built on ZK, Anchored by Trust

Scroll’s zkEVM architecture means zero-knowledge proof baked into the core. Pencils leverages this to ensure:

• Private, bias-proof auction processes

• Efficient cost and computation scaling

• Trustless interactions, with the security of Ethereum mainnet

This isn’t some fly-by-night contract copy. This is real infrastructure with zero-knowledge tech doing the heavy lifting under the hood.

A DeFi Shopping Mall of Protocol Features

Pencils isn’t a single lane. It’s an entire freeway interchange of yield activities:

• Liquid staking and re-staking ETH & BTC assets (like solvBTC)

• Leverage yield vaults (launching soon)

• Liquidity bridging and swapping through XY Finance and Squid

• Interactive launchpad events with unique auction mechanics

Everything connects. Everything rewards. And everything just works.

Scroll’s DeFi Darling — With an Epic Roster of Backers

Let this one sink in — Pencils Protocol is backed by:

• Scroll

• OKX Ventures

• Animoca Brands

• Presto Labs

• Gate.io Labs

• Aquarius

• Arcanum Capital

• AAR Capital

When you’re deep in the DeFi trenches, you learn to follow the smart money. Scroll’s golden child status speaks volumes. These investors aren’t tossing pennies — they’re betting big on protocol dominance.

The Social Signal: Over 100K Followers and Climbing

On Web3 Twitter, traction is everything. Pencils is verified-buzzing with:

• Twitter: 112K+ followers

• Discord: 5.7K members

• Telegram: 72K+ members

• Medium: Deep-dive articles weekly

• Gitbook: Whitepaper and ecosystem docs

The community isn’t just scalable — it’s already scaling. And they’re doing it with memes, badges, and incentives that keep the alpha flowing.

Badges, Roles, and On-Chain Recognition

Pencils Protocol gamifies participation through its scrolling badge system:

• S Badge: Hardcore stakers or Guild Leaders

• Peab Badge: Contributors who hit milestone staking tasks

These badges aren’t just digital trophies. They’re verification of early contributions, unlocking exclusive benefits in future drops and campaigns.

Final Thoughts: The DeFi Alpha of Scroll Has a Name

"This project is backed by some of the biggest giants in the industry... and I absolutely love to see it." — Professor Crypto

Let’s hit the quick TL;DR for all my latecomers to class:

• What It Is: All-in-one auction platform + yield aggregator on Scroll

• Core Offerings: Staking, vaults, auctions, bridge, swap

• Why It Matters: Unifies fragmented yield, enhances asset productivity

• Key Stats: $32.55M TVL, 16.8K+ users, #1 dApp on Scroll

• Partners: StakStone, Kelp, Puffer, Scroll, OKX Ventures, and beyond

If you’ve been waiting for the breakout DeFi project in the Scroll ecosystem — this is it. No cap, just facts. This protocol doesn’t just talk the talk; it walks the walk with millions locked, yield-generating features, and a buzzing user base just getting started.

Consider this one officially added to the Professor Crypto Watchlist™. Shoutout to the entire Pencils Protocol team — keep pushing, keep building. The bull market needs titans, and you’re already halfway up Mt. Olympus.

Useful Links for Further Research