MoneyArk: A New Emerging DeFi Project on Ethereum

Recently, a noteworthy new DeFi project called MoneyArk has emerged in the Ethereum ecosystem. Although the current market focus is largely on inscriptions and the Solana ecosystem, the performance of MoneyArk cannot be overlooked. The project recently completed its initial distribution, and its token $Mark skyrocketed in price by over 20 times on December 10, attracting widespread attention.

MoneyArk offers two ways to participate: one is to buy and hold $Mark tokens, and the other is to deposit USDC into its algorithmic treasury to earn daily returns. Let's dive into the core mechanism of this project.

$Mark: The value storage token of MoneyArk

$Mark, as the core token of MoneyArk, aims to achieve long-term stable growth. Its features include:

1. Transaction tax mechanism: A 10% fee is charged on each transaction, with 5% distributed to holders and 5% used to provide liquidity.
2. Fixed total supply: 100 million pieces, of which 49% is allocated to the "black hole" contract.
3. Black Hole Rebalancing: When the balance held by the black hole address reaches 51% of the total supply, a rebalancing operation is triggered.

This design encourages long-term holding while continuously enhancing the protocol's liquidity through a black hole mechanism.

USDC Pool and Algorithmic Treasury

Users can deposit USDC into the algorithmic vault and earn a daily return of 0.5%. It is important to note that the principal is non-redeemable, and users can only gradually recover costs through daily earnings. The distribution of deposited funds is as follows:

• 85% used for automatic purchase of $Mark
• 10% into USDC pool to pay earnings
• 1% allocated to the inviter
• 4% reserved for future use

When the withdrawal amount exceeds 1% of the USDC pool, the system will automatically sell $Mark to replenish the pool.

Project Development Stage Analysis

MoneyArk designed a positive feedback loop mechanism in its early stages:

1. Low valuations attract early $Mark investors
2. Additional $Mark rewards attract USDC deposits
3. USDC is used to purchase $Mark to drive up the price.
4. Increased rewards attract more USDC deposits.
5. Enhance trading activity to increase protocol liquidity
6. Good data attracts more investors

However, the additional $Mark rewards will stop after 14 days, which may put USDC depositors in a difficult position.

Participation Strategy Analysis

Depending on the timing and method of participation, it can be roughly divided into four situations:

1. Early purchase of $Mark: The most ideal strategy
2. Early deposit of USDC: suboptimal solution
3. Purchasing $Mark in the mid to late stage: higher risk
4. Late-stage deposit of USDC: highest risk

It is worth noting that regardless of the method of participation chosen, MoneyArk carries a high level of risk, and investors should act cautiously and fully assess their own risk tolerance.