Ethereum DeFi new project attracts follow, with both returns and risks.

Recently, a noteworthy new project called MoneyArk has emerged in the Ethereum DeFi space, with its token $Mark experiencing a price surge of over 20 times shortly after its launch. The project offers two ways to participate: buying and holding the $Mark token, or depositing USDC into the algorithmic treasury to earn daily returns.

$Mark, as a value storage token for the project, aims to maintain long-term low volatility and continuous growth. Its features include a 10% transaction tax mechanism, half of which is allocated to holders and the other half used to provide liquidity. This design does not encourage frequent trading, but rather encourages long-term holding. The total supply of $Mark is fixed at 100 million, with nearly half allocated to the "black hole" contract, resulting in a relatively low circulating supply.

Another way to participate is to deposit USDC into the algorithmic vault. Depositors can earn a daily return of 0.5% on their invested funds, but the principal cannot be redeemed and can only be gradually recovered through daily earnings. Most of the deposited funds are used to automatically purchase $Mark tokens, with a small portion used to pay out earnings and for other purposes.

The project initially designed a spiral rising mechanism. Low valuation and trading fees attract early investors, while additional rewards attract USDC deposits. The invested USDC is then used to purchase $Mark, causing the price to rise and forming a positive feedback loop. However, after 14 days, the additional rewards will stop, and participants may face the dilemma of recovering their profits and principal.

From the perspective of timing and method of participation, early purchase of $Mark may be the most ideal strategy, allowing one to enjoy price increases and trading fee dividends. Early deposits of USDC are the second-best option, potentially recovering costs quickly through additional rewards. Participation in the later stages, whether by purchasing $Mark or depositing USDC, will significantly increase the risks.

It is important to emphasize that participating in such projects carries high risks, and investors should act cautiously and fully assess the potential risks and returns.