DeFi New Project MoneyArk Attracts Attention: High-Risk High-Return Model Sparks Controversy

Recently, a new DeFi project MoneyArk has emerged in the Ethereum ecosystem, attracting widespread attention in the cryptocurrency community. The project adopts a high-risk, high-reward model, achieving significant price growth in a short period of time, with its token $Mark increasing in price by more than 20 times after its launch.

The MoneyArk project 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. This model has sparked discussions in the industry about its sustainability.

$Mark token serves as the value storage token for the project, with the design goal of maintaining long-term low volatility and continuous growth. The token employs a 10% transaction tax mechanism, with half allocated to all holders and the other half used to provide liquidity. This mechanism is intended to discourage frequent trading and encourage long-term holding.

The total supply of $Mark is fixed at 100 million, with nearly half allocated to the "black hole" contract. This design significantly reduces the actual circulating supply of tokens, which may impact market capitalization calculations. Over time, the proportion of tokens held by the "black hole" contract will gradually increase, and when it reaches 51% of the total supply, a rebalancing operation will be triggered.

Another way to participate is to deposit USDC into the algorithmic treasury. Depositors can earn 0.5% daily returns, but the principal cannot be redeemed and can only be gradually recovered through daily earnings. This high-yield model comes with high risks, and investors need to consider carefully.

In the early stages of the project, MoneyArk attracted investors through low valuations and additional rewards, creating a spiraling upward pattern. However, after the first two weeks, the additional rewards will cease, which may put investors in a dilemma.

For potential participants, early purchase of $Mark tokens may be the most ideal strategy, while participation in the middle and later stages carries higher risks. Regardless of the chosen method, investors should fully recognize the high-risk nature of it.

Overall, the MoneyArk project demonstrates the innovative and high-risk characteristics of the Decentralized Finance field. Its emergence has sparked deep reflections on sustainability, risk management, and the future development direction of DeFi projects. When participating in such projects, investors need to remain vigilant and conduct thorough risk assessments.