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

Written by: Jiang Haibo, PANews

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

There are two ways to participate in MoneyArk. One is to buy and hold $Mark. Token, the other is to deposit USDC into the algorithm treasury to obtain a "permanent" daily income of 0.5%. PANews will introduce this below.

Store of ValueToken $Mark

$Mark is a value storage token in MoneyArk, which is designed to maintain long-term low volatility and continuous growth, and is managed by an algorithmic treasury through automated, on-chain transactions.

An important feature of $Mark is its transaction tax mechanism. Each transaction (buy, sell and transfer) will generate 10% in fees, of which 5% is evenly distributed to all holders, and 5% is used to provide liquidity (half will be sold automatically). Therefore, in a complete buy and sell, a total of 20% transaction tax will be charged, which discourages users from frequent transactions; on the contrary, holding $Mark can get transaction fee dividends.

The total supply of $Mark is fixed at 100 million, of which 49% is allocated to the "Black Hole"contract(Blackhole); 19% for 1D0; 8% for providing initial liquidity; 14% for increasing the returns of the initial USDC pool; the remaining small amount of tokens is used for marketing, airdrops and distribution to the team.

Since nearly half of the tokens are allocated to the black hole address, and this part of the tokens will not actually circulate, this part can be considered to be excluded 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 holds 49% of $Mark. As time goes by, the holding ratio will increase. When the $Mark tokens held by the black hole reach 51% of the total supply, the black hole rebalancing operation can be triggered. At this time, 0.5% of the total $Mark is sold in exchange for USDC, and together with another 0.5% of $Mark, it is used to form LP.

The way that Black Hole accumulates 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 Pool and Algorithmic Vault

Another way to participate is to deposit USDC in the algorithmic treasury. Depositors can receive a daily return of 0.5% on their investment, but please note that this is risky and the principal cannot be redeemed. You can only rely on daily returns to recover costs (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 revenue payment, 1% is allocated to the inviter, and the remaining 4% is reserved for future use.

When the withdrawal amount of participants exceeds 1% of USDC pool, SmartcontractThe held $Mark tokens will be automatically sold to replenish the USDC pool.

Unclaimed earnings can be reinvested, but please note that after claiming a portion of the earnings, the portion claimed will be deducted from the deposit when calculating subsequent earnings. For example, if a user deposits 10,000 USDC and earns a total of 250 USD in 5 days, if the earnings are withdrawn, the portion earned each day will become (10,000-250)*0.5%.

Upward spiral and death spiral

At the beginning, MoneyArk had a very good spiral upward mechanism. The project was launched at a low valuation. Early $Mark buyers could not only enjoy a high certainty of rising space, but also receive handling fee income as early as possible during the period of frequent transactions. At the same time, in the first two weeks, a total of 1% of $Mark tokens were distributed to USDC depositors every day. Early users who deposited USDC could quickly recover their costs through $Mark rewards.

In the early stages, MoneyArk is expected to achieve an upward spiral by “stepping on the right foot with the left foot”.

• Attract investors to buy $Mark as early as possible with low valuation and transaction fees;

• Use additional $Mark rewards to attract users to invest in USDC as early as possible;

• The invested USDC is used to purchase $Mark, causing the price to rise;

• The amount of rewards distributed to USDC depositors increases, which can attract USDC deposits;

• The more active the user's trading, the more liquidity the protocol has through transaction fees and black holes;

• Number of itemsXiaobai NavigationThe improvement in 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 the cost. USDC depositors will also be caught in a dilemma. If they withdraw their earnings in time, they will have to pay high gas fees, and the base for calculating the earnings will also be reduced, and the payback period will be longer; if they do not withdraw their earnings in time, it will be questionable whether they can finally recover their funds.

How and when to participate in MoneyArk

If we roughly judge from the two dimensions of participation method (buying $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 deposited USDC will form new purchasing power, which will not only gain capital appreciation when the price rises, but also receive dividends from transaction fees.

Depositing USDC early is a suboptimal solution. It is possible to recover the cost in the first 14 days by relying on the additional $Mark reward, and continue to earn income afterwards.

Buying $Mark in the middle and late stages is even worse, as you need to pay 10% for each transaction, and the trading is not as active as in the early stages, 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. At this time, there is no additional $Mark reward, and the principal you deposit may also become the exit liquidity of all early participants.

It should be noted that whether purchasing $Mark or investing in USDC, there are high risks, and investors should participate with caution.

The article comes from the Internet:20 times on the first day of launch, the Ponzi project MoneyArk on Ethereum caused new FOMO?

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