Gate Labs Announces Investment in Pencils Protocol, Supporting Innovation in the DeFi Ecosystem

2024-09-27, 01:40

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Gate Labs, the venture capital arm of Gate.io, has officially announced a strategic investment in Pencils Protocol, a next-generation DeFi platform. This investment aims to accelerate Pencils Protocol's innovation in blockchain asset auctions and yield aggregation, further driving its technological development in Layer-2 networks and zero-knowledge technology. Through this investment, Gate Labs hopes to assist Pencils Protocol in becoming a key player in the DeFi ecosystem with breakthrough technology and broad influence.

![](https://gimg2.gateimg.com/image/article/1727400842eng1.png)

### Pencils Protocol: Redefining the Layer-2 DeFi Ecosystem

Pencils Protocol is an innovative decentralized platform dedicated to providing efficient auction solutions for blockchain-native assets and Real-World Assets (RWA). The protocol not only offers users unified and leveraged yield aggregation services but also optimizes asset utilization through efficient technological means, helping users maximize returns from their assets.

As a native application of the Scroll network, Pencils Protocol leverages zero-knowledge technology to achieve higher privacy protection and scalability within Layer-2 solutions. This integration allows Pencils Protocol to offer more secure and efficient decentralized financial services, particularly enhancing the user experience in yield aggregation and liquidity mining.

Moreover, Pencils Protocol aims to serve as the primary TVL gateway within the Scroll network. Through the synergistic effects of its powerful Launchpad and Farming functions, the protocol is becoming a core driving force in the Layer-2 space, providing users with highly integrated and secure DeFi services.

### Investment Use: From Product Innovation to Community Expansion

This funding will provide Pencils Protocol with significant development capital, to be primarily used in the following areas:
**- **Product Development: Pencils Protocol will heavily invest in the development of its core products and the improvement of protocol infrastructure, ensuring that the platform offers robust features and outstanding performance to users.
**- **Security Enhancements: To ensure the safety of user assets, Pencils Protocol plans to conduct rigorous security audits and penetration testing, ensuring that the protocol's security meets industry-leading standards.
**- **Community Building: Pencils Protocol will allocate substantial resources to expanding its community, attracting more users through various marketing activities and events, and establishing a more active user ecosystem.
**- **Scalability Enhancement: By introducing advanced zero-knowledge technology and other scalability solutions, Pencils Protocol will further improve the platform's performance and privacy protection capabilities, providing a seamless DeFi experience for more users.

With the completion of this funding round, and through continuous technological innovation, community expansion, and security reinforcement, Pencils Protocol is expected to provide users with more efficient and secure asset management tools and bring more innovative financial solutions to the entire DeFi ecosystem.

The Gate Labs team stated: "Pencils Protocol has shown great potential through its innovative auction and yield aggregation services. With the support of the Scroll network and the application of zero-knowledge technology, we believe Pencils Protocol will become an unignorable force in the DeFi space. Gate Labs looks forward to exploring a broader decentralized financial world together with Pencils Protocol."

### About Gate Labs

Founded in 2021 as the venture capital and listing division of Gate.io, Gate Labs is committed to providing comprehensive support and resources to blockchain entrepreneurs, fostering the growth of startups.

### About Pencils Protocol

Pencils Protocol is the next-gen decentralized platform that offers auction services for blockchain native assets and RWAs, along with unified and leveraged yield aggregation services for users to maximize asset utilization. Pencils Protocol also serves as a Scroll native gateway for liquid staking and restaking assets.

Powered by Scroll, Pencils Protocol redefines the Layer-2 sectors by utilizing Scroll’s zero-knowledge technology. We focus on scalable and private DeFi services, enhancing yield aggregation and farming. By leveraging the synergy between the Pencils Protocol launchpad and farming solutions, Pencils Protocol aims to become the primary TVL gateway for the Scroll ecosystem.

Author: Global Marketing Jacky
*This article represents only the views of the researcher and does not constitute any investment suggestions.
*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.

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