20 times on the first day of launch, the Ponzi project MoneyArk on Ethereum caused a new FOMO?

Decentralized Finance projects on Ethereum have been crushed in the recent bull market, overshadowing the wealth-creating effect of inscriptions and the Solana ecosystem. But in fact, a new Ponzi project, MoneyArk, recently went live and carried out 1D0, and the price of the $Mark Token increased by more than 20 times on December 10.

There are two ways to participate in MoneyArk, one is to buy and hold $Mark Tokens, and the other is to deposit USDC into the Algorithm Treasury to receive a “perpetual” 0.5% daily yield. This is described below by PANews.

Value Store Token $Mark

$Mark is a store of value Token in MoneyArk, designed to maintain long-term low Fluctuation and sustained growth, managed by Algorithm vaults through automated, on-chain transactions.

An important feature of the $Mark is its transaction tax mechanism, where each transaction (buy, sell, and transfer) incurs a 10% fee, of which 5% is distributed evenly among all holders and 5% is used to provide Liquidity (half is automatically sold). Then, in a full buy and sell, a total of 20% transaction tax will be charged, discourage users from trading frequently, on the contrary, holding $Mark can receive trading fee dividends.

The total supply of $Mark is fixed at 100 million, of which 49% is allocated to the “blackhole” contract, 19% to 1D0, 8% to provide initial Liquidity, 14% to increase the yield of the initial USDC pool, and the remaining small amount of Token is used for marketing, Airdrop, and distribution to the team.

Since nearly half of the Tokens are allocated to the Burn Address, and this part of the Token will not actually circulate, this part can be considered when calculating the total Market Cap of $Mark. The $Mark held by the Burn Address will also accumulate transaction fees, at the beginning the Burn Address holds 49% of the $Mark, and the holding ratio will rise over time, and when the $Mark Token held by the black hole reaches 51% of the total supply, the black hole rebalancing operation can be triggered. At this time, 0.5% of the total amount of $Mark is sold for USDC, which is used together with another 0.5% of $Mark to form LP.

The way the black hole accumulates transaction transaction fees can be approximated as the protocol captures value in this way, and the initial liquidity and the subsequent liquidity accumulated by the black hole constitute the liquidity owned by the MoneyArk protocol. Liquidity will increase over time.

USDC pool with algorithm vault

Another way to participate is to deposit USDC in the algorithm vault, depositors can get 0.5% of the invested funds every day, but be aware that this is risky, the principal cannot be redeemed, and can only rely on the daily income to recover the cost (and earn more income).

Of the deposited funds, 85% of USDC is used to automatically purchase $Mark Tokens, 10% is sent to the USDC pool for payment of earnings, 1% is distributed to inviters, and the remaining 4% is reserved for future use.

When a participant’s withdrawal amount exceeds 1% of the USDC pool, the Smart Contract will automatically sell the $Mark Token held to replenish the USDC pool.

The unclaimed income can be reinvested, but it should be noted that when a part of the income is claimed, the deposit will be deducted from the withdrawn part when calculating the subsequent income. If a user deposits 10,000 USDC and receives a total of $250 in 5 days, if the profit is withdrawn, the subsequent daily gain will become (10,000-250)*0.5%.

Spiral rising with death spiral

In the beginning, MoneyArk had a very good spiral rising mechanism. The project is 1D0 at a low valuation, and early $Mark buyers can not only enjoy high certainty of upside, but also get fee income as early as possible during periods of frequent transactions. At the same time, for the first two weeks, a total of 1% of the total amount of $Mark Tokens is distributed to USDC depositors every day, and those who deposit USDC early may quickly recoup their costs through $Mark rewards.

In the initial stage, MoneyArk is expected to achieve a spiral rise in the form of “left foot on right foot”.

• Attract investors to buy $Mark early with low valuations and transaction fees;
• Attract users to invest USDC as soon as possible with additional $Mark rewards;
• The invested USDC is used to buy $Mark, causing the price to rise;
• Funds for USDC depositors rise, which in turn attracts USDC deposits;
• The more active the user’s trading, the more black hole funds, and the better the liquidity;
• The improvement in various data prompted investors to buy $Mark.

But after 14 days, there will be no additional $Mark rewards for USDC depositors, at which point it will take at least 200 days to recover costs. USDC depositors will also find themselves in a dilemma, if they withdraw their earnings in time, they will pay high gas fees, the base for calculating returns will also be dropped, and the payback period will be longer; if they are not withdrawn in time, it will be questionable whether they can fully recover their funds in the end.

How and when to participate in MoneyArk

If you roughly judge from the two dimensions of participation method (buying $Mark or depositing USDC) and participation time (early or mid-to-late), it can be divided into four situations:

Buying $Mark Tokens early is ideal, and the deposited USDC will generate new purchasing power, not only to gain capital appreciation when the price rises, but also to receive dividends from transaction fees.

Depositing USDC early is a suboptimal option, and it is possible to recoup costs with additional $Mark rewards for the first 14 days, and continue to earn benefits later.

This is especially true for buying $Mark in the mid-to-late stages, where you need to pay a 10% fee for buying and selling, and the transaction is not as active as in the early days, so you can only bet on a larger increase in the price of $Mark.

The worst investment strategy is to deposit USDC in the middle and late stages, when there is no additional $Mark reward, and the principal deposited by yourself may also become the exit liquidity for all participants in the early stage.

It should be noted that both buying $Mark and investing in USDC have high risks, and investors should be cautious about participating.