MoneyArk: An Emerging Ponzi Scheme Project in the DeFi Space

Recently, Ethereum DeFi projects have been relatively sluggish, but a new project called MoneyArk attracted market attention on December 10, with its token $Mark surging over 20 times in price on that day. This project claims to offer two ways to participate: buying and holding $Mark tokens, or depositing USDC into a so-called "algorithmic vault" to earn a "perpetual" return of 0.5% daily.

$Mark Token: The Core of the Project

$Mark, as the main token of MoneyArk, is designed to maintain long-term stability and growth. The project manages token circulation through automated on-chain transactions.

A notable feature of $Mark is its 10% transaction tax mechanism:

• 5% allocated to all holders
• 5% for providing liquidity

This mechanism discourages frequent trading and instead encourages long-term holding to receive dividends.

The total supply of $Mark is 100 million, distributed as follows:

• 49% allocated to "black hole" contract
• 19% for initial allocation
• 8% provide initial liquidity
• 14% used to increase early USDC pool returns
• Remaining for marketing, airdrops, and team allocation

It is worth noting that nearly half of the tokens are locked in a "black hole" address, which does not participate in actual circulation. Over time, the proportion of tokens accumulated in the black hole address will increase, and when it reaches 51%, it can trigger a rebalancing mechanism.

USDC Deposit Mechanism

Another way to participate is to deposit USDC into the project's "algorithmic treasury". Depositors can earn a daily return of 0.5%, but the principal cannot be redeemed and can only be recouped through accumulated earnings.

Distribution of funds for deposit usage:

• 85% used to purchase $Mark
• 10% into USDC pool for yield payments
• 1% to the referrer
• 4% reserved for future use

When users withdraw more than 1% of the USDC pool, the system will automatically sell $Mark to replenish funds. Unclaimed earnings can be reinvested, but withdrawals will affect the calculation base for subsequent earnings.

Project Operation Mechanism Analysis

MoneyArk initially designed a spiral ascending mechanism:

1. Low valuations and trading fees attract early $Mark investors
2. Additional $Mark rewards attract USDC deposits
3. USDC deposits are used to purchase $Mark to drive up the price
4. Increased rewards attract more USDC deposits
5. Active trading increases protocol liquidity
6. Data improvement drives more investment

However, 14 days later, the additional $Mark rewards will stop, and USDC depositors will face a dilemma: withdrawing profits in a timely manner will reduce the base for future earnings, while not withdrawing poses a risk to the safety of funds.

Participation Strategies and Risks

From the perspective of time and method, the strategies for participating in this project can be divided into:

1. Early purchase of $Mark: most ideal
2. Early deposit of USDC: sub-optimal
3. Later purchase of $Mark: higher risk
4. Later deposit into USDC: highest risk

Regardless of the strategy adopted, this project carries extremely high risks, and investors must exercise caution.