Is DeFi back? Understanding the Hype Behind This $300M TVL Project

A $300M+ TVL DeFi project backed by names like OKX Ventures and Animoca, that has already generated a 1000% ROI in 2024 and is expected to give a 5000% ROI by 2025: sounds too good to be true? Throw in the fact that it is one of the top three yield farming protocols in the ecosystem, and you have Pencils Protocol ($DAPP), a DeFi platform you must keep an eye on as we approach the last leg of 2024.

Pencils Protocol’s recent IDO on Tokensoft not only sold out, but was oversubscribed by 7x. As the next phase is expected to arrive soon on Tokensoft, another $DAPP sale is currently live on Gate.io Startup until September 27, fast selling out as we speak. Early investors can expect massive listing gains!

Previously known as Penpad, Pencils Protocol is a next-generation decentralized platform that offers auction services for both blockchain-based assets and real-world assets or RWAs. 

The platform partners with Scroll, a zkEVM (zero-knowledge Ethereum Virtual Machine). Notably, Pencils Protocol is currently the #1 DeFi project on Scroll! The protocol aims to be a comprehensive DeFi ecosystem, and boasts strong user engagement, with over 571K active users. 

Pencils Protocol has recently recorded an $80 million post-money valuation after the latest funding round led by Taisu Ventures, Bing Ventures, DePIN, and Black GM Capital. As we mentioned before, OKX Ventures has also invested in Pencils Protocol, setting the project up for an OKX Cryptopedia listing. Historically, about 60% of the projects listed on OKX Cryptopedia head to OKX Exchange, leading to greater exposure. 

Along with being one of the top three DeFi farming protocols across the world, Pencils Protocol is now also integrated with Binance Web3 Wallet. Overall, the project shows strong fundamentals, slowly evolving into a complete DeFi platform expected to make significant ROI in this year and the one to come. 

DeFi is back!

Pencil Protocol’s recent IDO on Tokensoft proves one thing: DeFi projects are gathering steam again, and projects like Pencils Protocol are bringing user confidence back into DeFi.

2024 has been a good year for crypto so far. Bitcoin and Ethereum ETFs have launched in the US, while RWA, memecoins, AI, and DePIN have emerged as some of the key narratives in crypto. In recent news, AI-related crypto are in fact seen leading the current altcoin surge! As a next bull run is expected soon, many are turning back to the big winner during the bull run of 2021-2022: DeFi platforms. 

Some dubbed 2021 the Year of DeFi, so good was the sector’s performance during the last bull run. However, the Terra-LUNA death spiral in 2022 shook people’s faith in DeFi, as it attested to unsustainable yield. Is that issue gone this time?

DeFi holds a TVL (total value locked) of $85.537 billion as we near the end of 2024 Q3. Now, that number is a good way off the ATH, but if you look at the DeFi TVL chart below, you’d notice that the recent growth of DeFi has been the biggest since the high of the last bull run. 

The seasoned investors expect DeFi to have a big role in the next bull run as well. A March 2024 research report from Bernstein stated, “We expect a big bang DeFi recovery and the investor narrative to come back as the future of blockchain finance.” The same report also clarified that while unsustainable yields may have held DeFi back in 2022, but this time the yield is real and regulatory clarity is there too. In fact, global asset managers may consider DeFi ETFs (exchange-traded funds) or active DeFi funds the way BlackRock and other big names have launched Bitcoin ETFs. 

Pencils Protocol: $0 to $300M+ in TVL in 2 months 

Pencils Protocol currently holds a TVL of over $350M. The platform uses zero-knowledge technology to protect user privacy, and ensures an unbiased process to protect fair launches. Pencils Protocol aims to be an all-encompassing DeFi ecosystem with offerings that include yield farming, staking, and vaults, with more like DeFi lending and borrowing to come. The protocol brings advanced yield optimization strategies, and allows dynamic bidding for high-value assets in the web2 and web3 spheres.

The native $DAPP token allows staking, rewards, higher leverages, early project allocation opportunities, and more. Further, there’s a deflationary buyback system in place for these $DAPP tokens, ensuring the token increases in value over time with a limited supply.

To incentivize user engagement, Pencils Protocol has also introduced the ‘Pencils’ point system. Users contributing to the Scroll ecosystem through Pencils Protocol are rewarded with Pencils, which later translate into benefits like early token allocations and exclusive merch. 

With backers like OKX Ventures, Animoca, and Gate.io Labs, Pencils Protocol is expected to give a 5000% ROI by 2025. For the investor thinking ahead, $DAPP could be a great investment right now.

Visit the Pencils Protocol official website today to learn more, and DYOR before you invest! 

Happy investing!