Smart contract analysis reveals two contract functions that enable malicious behavior: (1) a blacklist function allowing the deployer to permanently block any wallet from selling CHAKE tokens, and (2) a setTax function allowing the deployer to raise transaction taxes to 100% at any time — making selling economically impossible. These functions enable behavior consistent with traps that can prevent users from selling their tokens. All investor capital is at risk of permanent loss.
Most honeypot contracts use a single mechanism to trap funds. Chake Protocol uses two, which is more sophisticated and more dangerous. The blacklist function allows the deployer to target specific wallets — for example, large holders who might destabilize the price if they sell — and permanently block them from executing sell transactions. This gives the deployer surgical control over who can exit and when.
The setTax function provides a broader escape valve: when the deployer is ready to exit, they raise the tax rate to 100%, making all sell transactions economically impossible for everyone simultaneously. This triggers a panic among holders who suddenly cannot exit, while the deployer uses their privileged access to drain the liquidity pool. The combination of targeted blacklisting and universal tax manipulation gives the deployer complete control over the exit timeline.
The 1,000,000% APY figure is the highest yield claim in our database of analyzed projects. To put it in perspective: 1,000% APY (which we already classify as Ponzi-level) means 10x in a year. 1,000,000% APY means 10,000x in a year — a $1,000 investment theoretically becomes $10,000,000. This number is so far beyond any conceivable legitimate yield that it functions not as a financial projection but as a psychological trigger.
The target demographic for this claim is investors who are new enough to crypto to not immediately recognize the impossibility, but excited enough by the number to act before thinking. The 1,000,000% figure creates a sense that this is a "once in a lifetime" opportunity that must be seized immediately — exactly the FOMO pressure needed to bypass the due diligence that would reveal the malicious contract functions.
Chake Protocol's whitepaper being a rehash of defunct DeFi projects reveals something important about the operation: this is not a first-time scam. Projects that plagiarize documentation from multiple failed predecessors are typically run by operators with experience in the space — they know what documentation looks legitimate enough to attract investors, and they know the malicious contract functions that maximize extraction before the inevitable collapse.
The "Layer-1 blockchain with integrated perpetual DEX" framing (from the previous analysis) combined with the actual contract being a simple ERC-20/BEP-20 token with malicious functions is a classic mismatch between marketing claims and technical reality. The sophisticated branding exists to attract a more technically-aware investor who might dismiss a simple meme coin, while the underlying contract is the same trap used in hundreds of previous scams.
| Category | Score | Weight | Assessment |
|---|---|---|---|
| Smart Contract Security | 100/100 | Critical | |
| Team Transparency | 97/100 | High | |
| Yield Claims / Tokenomics | 100/100 | High | |
| Whitepaper Originality | 88/100 | Medium | |
| Marketing Authenticity | 85/100 | Medium | |
| OVERALL RISK SCORE | 94/100 | CRITICAL RISK — MALICIOUS CONTRACT | |
Chake Protocol contains contract functions that enable malicious behavior (blacklist+setTax): blacklist (blocks wallets from selling) and setTax (raises fees to 100%). Anonymous team, 1,000,000% APY psychological manipulation, plagiarized whitepaper. Near-certain total loss.
← Back to All Projects