Ethereum DeFi new project MoneyArk sparks heated discussion

Recently, a new project MoneyArk has emerged in the Ethereum DeFi space, performing remarkably during the bull market. The project launched on December 10 and conducted its initial distribution, with its token $Mark skyrocketing over 20 times in price on the same day, attracting market attention.

MoneyArk offers two ways to participate: one is to buy and hold $Mark tokens, and the other is to deposit USDC into the algorithmic treasury to earn daily returns.

$Mark Token Characteristics

$Mark, as the core token of MoneyArk, aims to achieve long-term low volatility and sustained growth. Its main features include:

1. Transaction tax mechanism: A 10% fee is charged on each transaction, of which 5% is distributed to holders and 5% is used to provide liquidity.
2. Fixed total supply: 100 million coins, nearly half allocated to the "black hole" contract.
3. Black Hole Rebalancing: When the holdings of the black hole address exceed 51%, a rebalancing operation is triggered to increase liquidity.

USDC Deposit Mechanism

Users can deposit USDC into the algorithmic vault and earn a daily return of 0.5%. However, please note:

1. The principal cannot be redeemed and can only recover costs through daily earnings.
2. 85% of the deposited funds are used to purchase $Mark, and 10% goes into the USDC pool to pay for returns.
3. When withdrawals exceed 1% of the USDC pool, $Mark will be automatically sold to replenish.
4. The receipt of earnings will affect the calculation basis for subsequent earnings.

Project Development Cycle

MoneyArk initially designed a spiral ascent mechanism:

1. Low valuations and trading fees attract early investors.
2. Additional $Mark rewards attract USDC deposits.
3. USDC purchases $Mark drive up the price.
4. High returns attract more USDC deposits.
5. Active trading increases protocol liquidity.

However, canceling the additional $Mark rewards after 14 days may put investors in a difficult situation.

Participation Strategy Analysis

According to the participation time and method, it can be divided into four situations:

1. Early purchase of $Mark: Most ideal, enjoy price increases and dividends.
2. Early deposit of USDC: suboptimal, may quickly recover costs.
3. Purchase $Mark in the middle to late stages: you need to bear high transaction fees and bet on a larger increase.
4. Depositing USDC in the mid to late stage: highest risk, may become others' exit liquidity.

Regardless of the strategy adopted, investors should fully recognize the risks and participate with caution.