MoneyArk: An Emerging DeFi Project on Ethereum

Recently, a new DeFi project called MoneyArk has emerged in the Ethereum ecosystem, and its token $Mark has shown remarkable price performance since its launch. Despite the overall DeFi sector being relatively sluggish, the price of $Mark increased by more than 20 times on December 10, drawing market attention.

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

$Mark Token: The Core of the Project

$Mark, as the main token of MoneyArk, is designed to maintain long-term stable growth. The project manages the token through an algorithmic treasury and on-chain automated trading.

A notable feature of $Mark is its transaction tax mechanism. Each transaction incurs a fee of 10%, with 5% distributed to all holders and another 5% used to increase liquidity. This mechanism is designed to encourage long-term holding while providing additional returns to holders.

The total supply of the tokens is fixed at 100 million, with nearly half allocated to the "black hole" contract, effectively reducing the circulating supply. The remaining tokens are used for initial allocations, providing liquidity, and enhancing early yields. Over time, the proportion of tokens held by the black hole contract will gradually increase, and when it reaches 51%, a rebalancing mechanism will be triggered to further enhance the project's liquidity.

USDC Deposit and Algorithmic Treasury

Another way to participate is to deposit USDC into the algorithmic vault. Depositors can earn a daily return of 0.5%, but it is important to note that the principal cannot be redeemed and can only be gradually recouped through daily earnings.

Most of the USDC deposited is used to purchase $Mark tokens, with a small portion allocated for paying yields and other purposes. When the withdrawal demand exceeds a certain ratio of the USDC pool, the system will automatically sell $Mark to replenish funds.

It is worth noting that after extracting part of the profits, the base for calculating subsequent profits will be correspondingly reduced. This mechanism encourages users to maintain long-term investments.

Project Development Trends

MoneyArk initially designed a potential positive feedback loop mechanism:

1. Low valuations and trading fees attract early investors
2. Additional rewards attract USDC deposits
3. USDC deposits drive up the price of $Mark
4. Price increases bring more investment
5. Active trading increases project liquidity

However, this mechanism may face challenges two weeks after the project launch, as the additional $Mark rewards will stop, and investors may take longer to recoup their costs.

Participation Strategy Analysis

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

1. Early purchase of $Mark: may yield the best returns
2. Early deposit of USDC: There is an opportunity to quickly recover costs in the early stage.
3. Late-stage purchase of $Mark: requires taking on higher risks
4. Depositing USDC in the later stages: May face the greatest risk

Investors should fully recognize that there are significant risks associated with whichever method of participation they choose. Before making investment decisions, comprehensive research and risk assessment should be conducted.