MoneyArk: An Emerging DeFi Project on Ethereum

Recently, the DeFi projects in the Ethereum ecosystem have performed relatively flat, but a new project called MoneyArk has attracted market attention. This project was launched recently and conducted an initial distribution, with its token $Mark increasing in price by more than 20 times on December 10.

MoneyArk offers two ways to participate: buy and hold $Mark tokens, or deposit USDC into its algorithmic treasury to earn a daily return of 0.5%.

$Mark: The core token of MoneyArk

$Mark is the value storage token of MoneyArk, designed to maintain long-term stable growth. It is managed by an algorithmic treasury through automated on-chain transactions. A notable feature of $Mark is its trading tax mechanism: every transaction incurs a 10% fee, half of which is distributed to all holders, while the other half is used to increase liquidity. This mechanism encourages long-term holding rather than frequent trading.

The total supply of $Mark is fixed at 100 million, with nearly half allocated to the "black hole" contract. This portion of the tokens will not circulate but will accumulate transaction fees. When the $Mark held by the black hole address reaches 51% of the total supply, a rebalancing operation will be triggered to use some of the tokens to increase liquidity.

USDC Pool and Algorithmic Vault

Another way to participate is to deposit USDC in the algorithmic treasury. Depositors can earn 0.5% of their invested funds daily, but the principal cannot be redeemed. Most of the deposited funds are used to purchase $Mark tokens, while a small portion is used to pay out yields and for other purposes.

When the withdrawal amount exceeds 1% of the USDC pool, the system will automatically sell $Mark tokens to replenish the pool. Unclaimed earnings can be reinvested, but after claiming the earnings, the calculation base for subsequent earnings will be correspondingly reduced.

Project Development Prospects

The initial design of MoneyArk seems to create a virtuous cycle: undervaluation attracts early investors, high returns attract USDC deposits, and deposits push up the $Mark price, forming positive feedback. However, after the additional rewards period in the first two weeks, the project faces challenges in sustainability.

The best time and way to participate in MoneyArk depends on individual risk tolerance and market judgment. Early purchases of $Mark may yield the highest returns, but they also come with high risks. On the other hand, participating later, especially by depositing USDC, may face greater uncertainty.

Regardless of the participation method chosen, investors should fully recognize the high-risk characteristics of DeFi projects, make prudent decisions, and allocate funds reasonably.