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

Under the banner of “store of value”, can MoneyArk replicate the algorithmic stablecoin market of the last bull market?

Written by: Jiang Haibo, PANews

DeFi projects on Ethereum have been suppressed in the recent bull market, and overall they have been overshadowed by the wealth-creating effects of Inscription and Solana ecology. But in fact, a new Ponzi project, MoneyArk, was recently launched and conducted 1D0. On December 10, the price of the $Mark token increased more than 20 times.

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 algorithmic vault to obtain a “permanent” daily income of 0.5%. PANews will introduce this below.

Store of value token $Mark

$Mark is a store-of-value token in MoneyArk that is designed to maintain low volatility and sustained growth over the long term and is managed by an algorithmic vault via automated, on-chain transactions.

An important feature of $Mark is its transaction tax mechanism, where each transaction (buy, sell and transfer) incurs a 10% fee, of which 5% is evenly distributed to all holders and 5% is used to provide liquidity ( will automatically sell half). Then, in a complete purchase and sale, a total of 20% transaction tax will be charged, which does not encourage users to trade frequently; on the contrary, holding $Mark can obtain transaction fee dividends.

The total supply of $Mark is fixed at 100 million, of which 49% is allocated to the “Blackhole” contract; 19% is used for 1D0; 8% is used to provide initial liquidity; 14% is used to increase the income of the initial USDC pool; A small amount of remaining tokens are used for marketing, airdrops, and distribution to the team.

Since nearly half of the tokens are allocated to black hole addresses, and these tokens will not actually circulate, you can consider excluding this part when calculating the total market value of $Mark. The $Mark held by the black hole address will also accumulate transaction fees. At the beginning, the black hole address held 49% of the $Mark. As time goes by, the holding proportion will increase. When the $Mark tokens held by the black hole reach the total supply, At 51%, the black hole rebalancing operation can be triggered. At this time, 0.5% of the total amount of $Mark is sold for USDC, and used together with the other 0.5% of $Mark to form LP.

The way black holes accumulate transaction fees can be roughly understood as the protocol capturing more value in this way. The initial liquidity and subsequent accumulated liquidity constitute the liquidity owned by the MoneyArk protocol. Over time, liquidity will increase.

USDC Pools and Algorithmic Vaults

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

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 allocated 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 held $Mark tokens to replenish the USDC pool.

Unclaimed earnings can be reinvested, but it should be noted that after receiving a portion of the earnings, the received portion will be deducted from the deposit when calculating subsequent earnings. For example, if a user deposits 10,000 USDC and gets a total income of 250 US dollars in 5 days, if he withdraws the income, the subsequent daily income will become (10,000-250)*0.5%.

Spirals and Death Spirals

In the beginning, MoneyArk has a very nice spiraling mechanic. The project is 1D0 at a low valuation. Early $Mark buyers can not only enjoy the high certainty of rising space, but also obtain commission income as early as possible during the period of frequent transactions. At the same time, in the first two weeks, 1% of the total $Mark tokens will be distributed to USDC depositors every day. Users who deposited USDC early may quickly recover their costs through $Mark rewards.

In the early days, MoneyArk is expected to achieve a spiral upward by “stepping on the left foot and stepping on the right foot.”

• Attract investors to buy $Mark as early as possible with low valuation and transaction fees;
• Attract users to invest in USDC as early as possible with additional $Mark rewards;
• The invested USDC is used to purchase $Mark, causing the price to rise;
• The amount of rewards allocated to USDC depositors increases, which can attract USDC deposits;
• The more active a user’s transactions are, the more liquidity the protocol has through transaction fees and black holes;
• Improvements in various data prompted investors to buy $Mark.

However, after 14 days, no additional $Mark rewards will be provided to USDC depositors, and it will take at least 200 days to recover costs at this time. USDC depositors will also be in a dilemma. If they withdraw their income in time, they will have to pay high gas fees, the basis for calculating income will also be reduced, and the return period will be longer; if they do not withdraw in time, it will be a question of whether they can fully recover the funds in the end. doubt.

How and when to participate in MoneyArk

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

It is ideal to purchase $Mark tokens early. The USDC deposited will form new purchasing power. Not only can you obtain capital appreciation when the price rises, but you can also receive dividends from transaction fees.

Depositing USDC early is a suboptimal solution. It may recover the cost by relying on additional $Mark rewards in the first 14 days, and you can continue to earn profits in the future.

Buying $Mark in the middle and later stages is even worse. At this time, you need to pay a 10% fee for one purchase and sale, and the transactions are not as active as in the early stage. You can only bet on a greater increase in the price of $Mark.

The worst investment strategy is to deposit USDC in the mid-to-late stage. At this time, there is no additional $Mark reward, and the principal you deposit may also become the exit liquidity of all participants in the early stage.

It should be noted that whether buying $Mark or investing in USDC carries high risks, investors should be cautious when participating.