BUNNY FRE Mechanism (Mint or Buy-back?)

FRE Mechanism : Either “Mint” or “Buy-back”

FRE (Floating Rate Emission)

FRE Definition from Gitbook
  • Direct rewards (eg. LP or CAKE) = 70%
  • BUNNY tokens (from either minting or buying back) = 30%
  • BUNNY tokens (FRE based minting rate) = 6%

When will the FRE mechanism mint or buy-back?

  • FRE threshold setup in the Bunny Minter Contract (now, it is 40 BUNNY : 1 BNB)
  • The ratio of BNB Price / BUNNY Price
Buy back BUNNY when the BNB/BUNNY ratio >FRE Threshold (40 BUNNY : 1 BNB)
Mint BUNNY when the BNB/BUNNY ratio < FRE Threshold (40 BUNNY : 1 BNB)

What is the FRE mechanism doing right now?

  • FRE threshold = 40 BUNNY : 1 BNB
  • BUNNY price = 7.41 USD
  • BNB price =458.39
BUNNY Minter Contract as-of 21th Aug 2021 5:50 UTC, FRE Threshold = 1 BNB : 40 BUNNY & In “Market Buy” mode

My Thoughts

  1. Buy-back” mode has been activated because the BNB/BUNNY price ratio is much greater than 40 (Now it is 61.86)
  2. Bunny Maxi Pool APR dropped from 300%APY to 115.80%APY due to the fact that the accumulated rewards in the BUNNY treasury was rebooted on 19th August (Due to compensation end) -> Related PancakeBunny article
BUNNY Maximizer Pool APY = 115.80 as-of 21th August 2021 6:50 UTC
Qubit Launch Date
QBT SAV Launch
  • BTC/ETH/BNB (Bullish trend)
  • QBT/BNB LP Pool (2000% APY)
  • QBT (Will launch on 24th August)
  • MND (Low price, high NAV)
  • polyBUNNY (APY > 500%)
  • The Higher PancakeBunny SAV APR
  • The more attractive BUNNY pools
  • The more TVL
  • The more performance fee
  • The more buying pressure from “FRE mechanism” & “investors”
  • The better BUNNY price
  1. Thank you for your contribution & hardworking to create the financial innovations for us, our Mound family. I do appreciate it.
  2. Provide an idea regarding “compromising the FRE mechanism”.
    Instead of choosing one way or another, can we perform both “buy-back” and “minting” at the same time with the dynamic percentage adjustment based on the BNB/BUNNY ratio vs FRE threshold. For example, if the BNB/BUNNY ratio is 60 while the FRE threshold is 40, instead of buying back using “ALL” collected performance fee. Can this be splitted to 2 portions; 70% for buying back and 30% for sending to Bunny Maxi pool stakers. And I truly believe your team already collected enough statistics and can model and tune this formula to destroy this vicious cycle.

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Tanate Sukonrattanamaetee

Tanate Sukonrattanamaetee

A Software engineer who loves reading and sharing any interesting and useful things

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