It's been almost two years since I wrote a tutorial on Scroll. Whether from a technical perspective or from the perspective of ecosystem development, it feels necessary to interact with the Scroll ecosystem.

Scroll may be a key airdrop in the third or fourth quarter of 2024 (possibly earlier than zk's token issuance). Take advantage of the current airdrop activities before they end and make the most of it.

This article mainly introduces Scroll's affiliated project—Pencils Protocol. It is a one-stop yield aggregator and auction platform on Scroll, integrating functionalities such as Launchpad, asset aggregation and distribution, and leveraged yield, providing users with a richer and more diverse on-chain asset service experience.

The Season 3 airdrop activity of Pencils Protocol allows for multiple benefits: participating in the Staking Pool can yield high APR returns and earn a series of rewards including Scroll Marks, Pencils Points, EigenLayer Points, StakeStone W1 Points, Kelp Miles, Puffer Points, and ecological alliance airdrop rewards.

StakeStone W1 Points, Kelp Miles, and Puffer Points have been introduced several times before, but the crypto dog has never mentioned Scroll Marks. Today, we will introduce Scroll Marks, which may be the direction for most people to pursue airdrops in the second half of the year.

The crypto dog is a "teach a man to fish" type of blogger, who won't just write a soulless, cold tutorial and throw it at everyone without explanation. Instead, we will clearly outline (and sometimes even calculate): what is the significance of pursuing a project? What is the direction? What are the key points?

Only by understanding these can we make money clearly; otherwise, you might feel busy every day but not earn any money, not even enough to buy an Audi Q5 in a year.

Only by clarifying the significance of Scroll Marks can we understand the importance of pursuing Pencils Protocol.

1. About Scroll Marks

(1) What are Scroll Marks

Scroll Marks is a user points statistics data released by Scroll on May 15, mainly tracking the scores of users' bridging data and gas burning data since the launch of the Scroll mainnet on October 10, 2023.

In the future, projects will distribute airdrops based on Scroll Marks (which we consider as points).

Eligibility criteria (meeting any one grants points):

• Previously bridged ETH, wstETH, and STONE to Scroll (more bridging assets will be opened later)
• Burned 5u of gas on the Scroll network

http://scroll.io/sessions

The gas data is from the snapshot on April 29. Don't be discouraged by this date; this is the data from Session Zero. There will be a Session One, and whether there will be Two or Three is currently unknown, but there will definitely be a Session One, so if you want to participate, you need to act quickly.

Let's take a look at the data metrics so we can have a better direction.

(2) Scroll Marks Data Metrics Analysis

Scroll Marks currently tracks 25,215,566 addresses, with the following breakdown:

• 0 marks: 587,363 addresses
• 1--10 marks: 377,759 addresses
• 11--20 marks: 47,532 addresses
• 21--50 marks: 127,851 addresses
• 51--100 marks: 309,974 addresses
• 101--200 marks: 354,525 addresses
• 201--300 marks: 148,814 addresses
• 301--400 marks: 71,384 addresses
• 401--500 marks: 37,850 addresses
• 500+ marks: 67,782 addresses

• Among these 25 million addresses, nearly 590,000 users have a Mark of 0;
• Most users are in the 1--10 Marks range;
• 50% of people have only 83 Marks;
• To enter the top 10%, you need to hold 2,130 Marks.

So the direction is clear: strive to get your points into the top 10%, so you won't have to worry about Scroll officials diluting your points with future Session One/Two/Three releases, thus obtaining a higher allocation.

(3) How to Increase Points

For public chains, the way to increase points is to calculate transaction volume; you can see your ranking based on the volume of transactions.

Transaction volume ranges are as follows:

• TOP 10%: 9,000U
• TOP 30%: 999U
• TOP 50%: 99U

The number of interactions with ecological contracts is as follows:

• TOP 10% number of contracts used: 17
• TOP 20% number of contracts used: 12
• TOP 30% number of contracts used: 9
• TOP 50% number of contracts used: 5

https://dune.com/0xlemonhard/scroll-users-statistics

From the data above, it can be seen that to improve your ranking, you can directly increase your transaction volume.

There are many ways to increase transaction volume, such as interacting with projects in the Scroll ecosystem (represented by contracts in the above image). You can also use cross-chain transactions more frequently, which can both burn GAS and increase transaction volume.

From the cross-chain data, 90% of users have only crossed 1 ETH or less, which indicates that there will be a lot of data skew in this area.

If the amount bridged is too small, the TVL will inevitably not increase, leading to serious liquidity issues for the ecosystem.

The three cross-chain points standards on Scroll Marks sufficiently illustrate the importance of cross-chain, so let's take a look at the focus of Pencils Protocol's Season 3.

2. About Pencils Protocol

(1) Project Overview

Pencils Protocol, formerly known as Penpad, is a one-stop yield aggregator and auction platform on Scroll, integrating functionalities such as Launchpad, asset aggregation and distribution, and leveraged yield, providing users with a richer and more diverse on-chain asset service experience.

• Investment Background

Investors include OKX Venture, Animoca Brands, Gate, Galxe, Presto Labs, Aquarius, Arcanum, Agarwood, Sandy (Scroll co-founder), etc.

• Current Progress of Pencils Protocol

Co-hosted Season 2 with OKX Wallet. In the first and second seasons, the amount of ETH staked by the community reached 275% of the original target to compete for $PDD shares, collaborating with over 50 high-quality industry projects to form a large global community.

(2) Project Mechanism

Pencils Protocol can be understood as an IDO or IEO platform; many projects in the Scroll ecosystem will issue tokens on Pencils Protocol. At the same time, it is also a one-stop yield aggregator platform (the Pencils Protocol Vaults section at the end of the article introduces this; here we mainly introduce the points system).

In previous IDO platforms, you could subscribe for as much as you had, and if you had enough funds, you could monopolize an IDO issuance and take all the allocations. But this is not the case with Pencils Protocol. To prevent VC whales from monopolizing, the platform has implemented many strategies to increase the subscription limits for ordinary users, such as the Pencils points system.

Pencils Points are the core participation contribution system in the Pencils Protocol ecosystem, which can be used to participate in Staking, Vaults, Launch, and future Shop product sections of ecological activities.

(3) What benefits can holders of Pencils Points receive (application scenarios of Pencils Points)?

• In Launch, users can spend Pencils to obtain more allocation or lower prices, increasing their chances of obtaining quality project allocations.
• In Vaults, users can increase their leverage by consuming Pencils, thus obtaining more mining rewards and realizing asset appreciation.
• In the future, when the Shop function is opened, users can spend Pencils to obtain limited products, NFTs, and other virtual or physical goods.
• Users holding Pencils Points have the opportunity to receive airdrops from launch projects.

Currently, the Pencils Protocol platform is launching the $PDD token airdrop distribution activity, where users can accumulate points by completing tasks. The more tasks completed, the more points earned, thus increasing the allocation of tokens that can be obtained at a low cost.

Let's see how to earn Pencils Protocol points and maximize the benefits.

3. Detailed Explanation of Season 3 Activities

(1) Activity Background

Pencils Protocol Season 3 is the focus of this article and the place where users can maximize their benefits.

Previously, Pencils Protocol has launched two airdrop activities:

• Season 1: 2024/2/27--2024/3/22
• Season 2: 2024/3/23--2024/5/20

Now users can easily transfer their Ethereum from Season 2 to Season 3 to earn multiple rewards, including Pencils and airdrops, or withdraw ETH.

Related tutorial: https://medium.com/@PencilsProtocol/maximize-your-returns-why-you-should-stake-your-eth-from-season-2-into-season-3-550cf237003f

• From May 24 to May 31

OKX Activity: After completing the OKX NFT distribution task, mint an exclusive co-branded NFT.

NFT Holders will receive the Pencils Genesis airdrop: a limited-time giveaway of 15,000 $PDD.

(2) About Season 3

S3 supports three assets: ETH, USDT, USDC

Season 3 features three main core activities, including:

• Activity One: Jointly initiated by Pencils Protocol, Scroll, Trust, leading LRT and LSD protocols (StakeStone, Puffer, and KelpDAO), Galxe, etc., providing participating users with super high APR incentives and high multiplier Points during the activity.
• Activity Two: In-depth cooperation with OKX Wallet to provide users with Scroll co-branded NFT rewards.
• Activity Three: Pencils Protocol and ecosystem jointly form an airdrop alliance to provide participants with multiple airdrop incentives.

(3) What benefits can be obtained in Season 3

1. Pencils Points from Pencils Protocol

In addition to receiving airdrops, holders of Pencils Points also enjoy the following benefits since Pencils Points do not reset to zero:

• Guaranteed whitelist for future projects issued on Pencils Protocol
• Priority access to airdrops for projects issued on Pencils Protocol
• Ability to purchase exclusive NFTs and products from the Pencils Shop
• Use leverage from Pencils Vault to achieve greater returns

In other words, Pencils Points act as a golden shovel, providing many benefits to users.

2. Scroll Marks (Scroll Mainnet Points)

The specific weight of Scroll Points (Marks) will be directly related to the user's staking amount and staking duration, corresponding to future Scroll Airdrops.

3. Dynamic APR Incentives During the S3 activity period, the Scroll Foundation will provide dynamic incentives for users participating in the Pencils Protocol Staking Pool. Users can accumulate Pencils and Scroll Points while enjoying single-token deposit yields.

4. Scroll Ecosystem Alliance Airdrop

All users participating in S3 Staking will receive 100% eligibility for the Pencils Protocol Genesis airdrop. In addition, partners will continuously provide airdrop activity incentives to the Staking pool, allowing users to flexibly withdraw various tokens from the Staking pool as additional airdrop rewards.

5. Re-staking Points Rewards

Staking pufETH, rsETH, or $Stone in Pencils Protocol can earn multiple points bonuses:

• Eigenlayer and Puffer Points: Staking pufETH can earn 2x points;
• StakeStone W1 Points: Staking $Stone can earn 3x points for the first 10 days, and then 2x points thereafter.
• Kelp Points 2x (staking rsETH)

(4) Airdrop Strategy

Based on the above, my task is to increase Scroll transaction volume and burn GAS. The strategy is as follows:

1. Premium Account (TOP 10%)

• Required TX: above 5,000u
• Required GAS burned: above 50U
• Asset retention span: over 6 months
• Number of contract interactions: 15

2. Regular Account (TOP 30%)

• Required TX: above 1,000u
• Required GAS burned: above 30U
• Asset retention span: over 3 months
• Number of contract interactions: 10

3. Basic Account (TOP 50%)

• Required TX: above 100u
• Required GAS burned: above 10U
• Asset retention span: over 1 month
• Number of contract interactions: 5

The above is based on existing data and is not a very exhaustive estimate. Therefore, we may adjust according to the situation.

(5) Practical Planning

Looking at Scroll's affiliated project Pencils Protocol, various documents clearly indicate that the weight of the Scroll wallet airdrop assessment is based on: the amount of funds retained and the duration, both of which are positively correlated.

Taking the premium account as an example, the practical plan is as follows:

1. Bridge ETH worth 50u to the Scroll mainnet for transaction fees and future ecological interactions (to increase transaction counts);

2. Bridge 1.5 ETH to Pencils Protocol to increase TX at once, preparing for future dilution. The ETH bridged to Pencils Protocol can be other LST assets, such as StakeStone's $stone, Puffer's $pufETH, KelpDAO's wrsETH (other assets are expected to be added later).

Now let's see how to bridge to Pencils Protocol and increase TX.

4. Pencils Protocol Interaction Tutorial

• Pencils Protocol Season 3 link: https://pencilsprotocol.io/staking
• For users participating in Season 2, one-click ETH transfer and withdrawal: https://pencilsprotocol.io/launch

(1) Unstaking and Transferring (for users participating in Season 2; new users can skip this and see the next section)

1. On the homepage, find the Unstake banner

2. After entering the banner, click [Unstake&Join Season 3 Now] to proceed

3. Choose to view detailed Season 3 introduction or specific operations

Clicking [Yes] or [No] will prompt your wallet to continue with the corresponding operation

Clicking [Yes] or [No] will prompt your wallet to continue with the corresponding operation

(2) Staking Operation Tutorial

1. Click the [Staking] tab at the top of the homepage to enter the Staking page

2. Click the [Deposit] button on the right side of the corresponding Staking asset to pop up the Deposit window

3. Choose the deposit ratio and confirm the amount. Note: After a successful deposit, you will receive the corresponding pToken (e.g., pETH, pUSDC, etc.) at a 1:1 ratio

Staking ends here; Pencils Protocol's staking can be withdrawn. Choose how long to stake based on your expectations for the Pencils Protocol project and Scroll mainnet airdrop, referring to the "airdrop strategy" above for your own choice.

Below are other products from Pencils Protocol; feel free to participate if interested. This is just a project product analysis and basic tutorial.

5. Expansion --- Pencils Protocol Vaults Tutorial (Optional)

Vaults are one of the products in the Pencils Protocol ecosystem, providing a leveraged mining model similar to lending, allowing users to borrow assets from the Vaults pool to achieve multiple yields while receiving multiple ecological points incentives. Vaults 1.0 supports a minimum of 1x leverage, and in the future, Pencils Protocol will gradually open more high-leverage options.

For more product details, please check: https://medium.com/@PencilsProtocol/introducing-pencils-protocol-vaults-1c16a5a26b18

What are the advantages of leveraged mining in Vaults?

• High returns: In addition to basic LP liquidity mining returns, Pencils Protocol also provides points incentives for Vaults users.

Users in Vault 1.0 can increase their LP mining returns by borrowing funds at the lowest cost through increased leverage, and they can also earn high multipliers of Pencils Points, DEX Points, and Scroll Points; in the future, Vault 2.0 will combine with LSD, LRT, etc., to provide users with Native Restaking Yield and multiple points rewards (including EigenLayer, LRT, Penpad, DEX, and Scroll).

• Low risk: Compared to traditional leveraged lending mining, the risk of Vaults products is lower, and the returns are more stable.

Basic Tutorial for Pencils Protocol Vaults

1. Connect your wallet and register to verify your Pencils Protocol account. If you have completed the registration and verification previously, you can skip this step.

2. Enter Vaults, select the corresponding Pool, and click Detail.

3. Choose the asset deposit ratio and leverage multiplier, confirm, and click Deposit. Vaults will automatically complete the leverage allocation and form LP to earn liquidity returns without further operations.

4. In Manage, switch to Withdraw to extract principal and earnings.

That's all for today's tutorial. I introduced methods for premium accounts, regular accounts, and basic accounts to interact with the Scroll mainnet and the ecological project Pencils Protocol. Many strategies in between are important references for us to pursue airdrops.
Each airdrop can be operated with multiple accounts. Currently, the multi-account tool I use is: MorLogin fingerprint browser

https://www.morelogin.com/?from=AANvwSB8onX4

This is one of the many tools I use, which I consider to be a relatively safe Web3 fingerprint browser, also officially reviewed by OK Wallet: