Mound (MND) Update as-of 02-Oct-2021
Hello Mound Fam,
By next week, the QBT rewards will be boosted 1.5x and the QBT collateral ratio will be changed from 0% to 25%. This is quite good news for those 8.33M QBT tokens (belong to MND Vault) farming on the Deposit market.
Let’s begin with our norm :)
Highlights this week
- PancakeBunny’s Qubit SAV TVL as-of 2 Oct 2021 09:15 UTC dropped from 172.8M to 165M USD -> Link
Note : Read more about Qubit SAV here - The principal + rewards of polyBUNNY tokens (in polyBUNNY maxi pool) held by the Dev team = 917,927 + 523,961 = 1,441,888 tokens. Plus, additional “25,380” polyBUNNY sitting in the wallet without farming -> Link
- All participants of the Qubit protocol will receive 50% bonus rewards for 3 weeks (5th -26th October 2021) and the QBT collateral ratio will change to 25% on 4th October 2021 -> Link
- PancakeBunny UI Update -> Link
Mound Vault TVL & Status
As-of 2nd October 2021 09:15 UTC, the Mound Vault numbers are as follows:
TVL (Total Value Locked) = 23.231 Million USD
BUNNY tokens = 3 Million tokens
QBT tokens = 100 Million tokens
Total MND Staked = 2.189 Million tokens (Around 80.54% of total supplies)
Effective value of MND token (TVL / MND tokens) = 8.55 USD
Current Market Price = 6.97 USD
Rewards Distribution Mechanism = 30-Days-Amortization
Note : 30-Days-Amortization means the daily rewards will calculate from the remaining rewards in the pool divided by 30 days. Read more details in my update on 12-Sept
Insights
(1) When will 1 million polyBUNNY tokens be added to the Mound Vault?
Since 12 Sept 2021 until now (2 Oct 2021), it seems like the polyBunny minted to the Dev wallet is around 2,500 tokens per day in average.
First theory : Reverse calculation tokens minted to dev from total supply
As-of October 2th, 2021 09:25UTC, the total polyBUNNY supply is around 6,615,370 tokens. With this number, it means there are 6,615,370 x (0.15 / 1.15) = 862,874.35 tokens minted to the team. If they use this approach to decide when they will add the tokens to MND vault, we will need to wait for (1,000,000–862,874.35) / 2,500 = 55 days (Around 26 Nov 2021)
Note : The team burned 320,500.946 polyBUNNY tokens minted to them (caused by the flash loan attack) since 27 July 2021, 05:00 UTC. So, if they deduct these burned tokens, we will need to wait longer than 55 days.
Second theory : Stick with the principal tokens in Dev Wallet
As-of October 2th, 2021 09:25UTC, the total polyBUNNY principal in the Dev wallet is around 941,146 tokens. If they use this approach to decide when they will add the tokens to MND vault, we will need to wait for (1,000,000–941,146) / 2,500 = 24 days (Around 26 Oct 2021)
(2) APR of the QBT tokens in the Mound Vault?
According to the Dev’s model, the daily QBT rewards will be around 16,341.76 QBT/day or 5.96% APR based on 100M QBT
However, after monitoring my daily QBT rewards got from the MND vault since 24-Sep-2021, it seems like the QBT reward rate on 24-Sep-2021 was around 0.0076 QBT/MND/day and the rate keep increasing to 0.0086 QBT/MND/day on 30-Sep-2021.
If my theory is correct, the model indicates that the MND vault currently get QBT rewards around 29,680 tokens per day or 0.0135 QBT/MND/day or 10.833% APR. So, we can expect the reward rate will steadily go up to 0.0135 QBT/MND/day or more than that after 1–2 months.
Note : This is not counting the 50% boosted rewards that we will get during 5–26 Oct 2021.
(3) Mound Valuation & Daily Reward generation
As-of 2-Oct-2021 09:15 UTC, the asset in Mound Vault are as follows:
- BUNNY = 3,000,000 tokens @ 4.93USD : 64% APR
Note: Since 19 Aug until now, the Bunny Maxi pool hasn’t got the performance fees to boost its APR because the FRE mechanism is now using all fees to buy back BUNNY from the market instead of minting new ones
Need to understand BUNNY FRE -> Read my FRE article here - polyBUNNY = 0 tokens @ 1.35 USD : 183% APR
Note: The polyBUNNY maxi APR rate keep declining, it seems to me like the polyBUNNY accumulated rewards in the pool will be empty soon. Since the FRE mechanism is now using all fees to buy back polyBUNNY from the market instead of minting new ones, so we haven’t had remaining fees to fill-in rewards to the polyBUNNY maxi pool. - QBT = 100,000,000 tokens @ 0.079 USD : 10.833% APR
Note: I will use the reward rate from my model to calculate the rewards for this week
the MND vault’s asset values = (3,000,000 x 4.93) + (100,000,000 x 0.079) = 22.69 millions USD
So far, there are only 2.190 Million MND tokens staked in the Mound Vault and around 10,000 MND tokens in form of MND/WBNB LP. So we may begin to assume that the remaining MND tokens won’t be staked forever.
But, to be conservative, I will treat just some of them as permanently unstaked tokens.
So, from now on, I will calculate the NAV and token holdings per MND using the average between MND total supply and MND staked in the vault.
MND averaged tokens = 0.5 x [2.717 (Total Supply) + 2.190 (MND staked)] = 2.4535
MND NAV per token = 22.69 / 2.4535 = 9.248 USD
And for every 1 MND token holding, it equals to hold 3 tokens as follows:
- 3 / 2.4535 = 1.223 BUNNY
- 0 / 2.4535 = 0 polyBUNNY
- 100 / 2.4535 = 40.758 QBT
The current daily rewards in Mound Vault will include:
BUNNY daily rewards = (3,000,000 x 4.93) x (64% / 365 days) = 25,933 USD
Note : this is around 5,260 BUNNY tokens per day
QBT daily rewards = (100,000,000 x 0.079) x(10.833% / 365 days) = 2,344.67 USD
Note : this is around 29,680 QBT tokens per day
polyBUNNY daily rewards = 0 USD
Note : this is around 0 polyBUNNY tokens per day
Daily rewards per MND token = (25,933 + 2,344.67) / 2,453,500 = 0.0115 USD
So, the %APR of MND Vault could be as follows:
= 0.0115 / 9.248 USD per day
= 0.1243 % APR per day
= 45.37% APR per year
Note :
- This number is the daily reward actually generated by Mound vault not counting the 75-days-accumulated BUNNY rewards from previous months
- You may notice that the APR on the Mound website showing 100++% APR but please keep in mind that the rewards distributed this month includes both the 75-days-accumulated BUNNY rewards and the actual daily reward.
(4) MND Vault Reward Prediction
Using the 30-days-amortization reward distribution method, we can then predict the reward per MND during 2 - 9 Oct 2021 as shown in the table below.
In simpler term, if we have 1,000 MND staked in the MND Vault, we should get around:
02-Oct-21 = 5.6 BUNNY + 8.9 QBT
03-Oct-21 = 5.5 BUNNY + 9.1 QBT
04-Oct-21 = 5.4 BUNNY + 9.2 QBT
05-Oct-21 = 5.3 BUNNY + 9.6 QBT***
06-Oct-21 = 5.2 BUNNY + 9.9 QBT***
07-Oct-21 = 5.1 BUNNY + 10.2 QBT***
08-Oct-21 = 5.0 BUNNY + 10.6 QBT***
09-Oct-21 = 4.9 BUNNY + 10.9 QBT***
*** I counted the 50% boosted rewards during 5–26 Oct 2021 in my prediction
(5) Summary
It seems like the PCB SAV TVL growth has been stopped at 165M USD.
With the additional 1.5x boosted QBT rewards during 5–26 Oct 2021, it will temporarily 1.5X boost APR of the PCB SAV, bQBT, bQBT/BNB Pools as well. Hopefully, this boost will be attractive enough to significantly boost the PCB SAV TVL up to 500M USD in upcoming weeks.
Plus, according to the “Qubit Important Update Notice” article, the QBT collateral ratio will be changed from 0% to 25% allowing the investors (and MND Vault!!!) who deposit their QBT on Qubit platform to gain some borrowing power to create new investment strategies either on-chain or cross-chain soon.
I hope we will see some good news regarding MND vault investment strategy utilizing this 25% QBT Collateral ratio soon!!!
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Thank you for reading this long article. You may notice so many assumptions and calculations in this weekly update. So, please don’t treat these as financial advices and try to DYOR, I will try my best to not being too optimistic or pessimistic as well.
Lastly, please feel free to share any facts or thoughts regarding Mound here so we can strengthen this and upcoming articles to be more helpful for our family.
Regards,
Hope
[Mound Related Articles written by the Mound team]
https://tanatesukonrattanamaetee.medium.com/mound-related-articles-written-by-mound-team-3755e25cece
[My MND Articles]
https://tanatesukonrattanamaetee.medium.com/my-mound-articles-bc412aeb03ef