Mound (MND) Update as-of 04-Sep-2021
Hello Mound Fam,
For this week, we’ve got the MND vault staking button we’ve been waiting for. By September 10th, 2021 06:00 UTC, I’m really excited we will be able to claim our rewards from the vault!
I believe many of us already read the latest Mound Vault article and notice that “the 100M QBT allocated for the MND Vault will be deposited in equal portions over a twelve month period”, right?
I’ve read that as well and I will try my best to analyze “why” the team will do this in the Insight section. So, let’s begin with our norm first!
Highlights this week
- Qubit Platform TVL reached 1.1 Billion USD TVL and keep growing rapidly (Avg. +100 million USD per day) -> Link
- The principal + rewards of polyBUNNY tokens (in polyBUNNY maxi pool) held by the Dev team = 853,594 + 317,743 = 1,171,337 tokens. Plus, I’ve just seen a good sign that there are additional “135,380.514” polyBUNNY in the wallet without farming! -> Link
- MND Vault details was shared on September 3th, 2021 stated that the vault will be launched on 10 Sept 6:00UTC -> Link
PLEASE DO NOT FORGET TO STAKE YOUR MND BEFORE 10 SEPT 4:00UTC TO GET THE FIRST CLAIM REWARDS!!!
- Our Mound Family member, KJ, created an anonymous survey to help bringing our community voices to the Mound team. If you have time, please help our fam! -> Link
Mound TVL & Status
As-of 4th September 2021 6:30 UTC, the Mound Vault numbers are as follows:
TVL (Total Value Locked) = 76.007 Million USD
BUNNY tokens = 3.5477 Million tokens
QBT tokens = 100 Million tokens
Effective value of MND token (TVL / MND tokens) = 27.97 USD
Total MND Staked = 1.474 Million tokens (Around 54% of total supplies)
(1) When will 1 million polyBUNNY tokens be added to the Mound Vault?
Even the principal of polyBUNNY tokens in the polyBUNNY maxi pool held by the Dev team = 853,594 tokens. BUT I’ve just seen a good sign that there are additional “135,380.514” polyBUNNY in the wallet without farming!
So, without the polyBUNNY rewards, the dev wallet should now have 853,594 (polyBunny Maxi principal) + 135,380 (additional assets in the Dev wallet) = 988,974 tokens and can easily reach 1 million tokens in one week from now.
So, again, I still believe that the team will add 1 million polyBUNNY tokens to the Mound Vault at the launch date. Plus, on the first claim date, we will get around 0–0.066 polyBUNNY per MND depending on the Mound Team decision on what they will do with their 317,743 polyBUNNY rewards.
(2) When/How will 100M Qubit tokens (in the Mound Vault) being farmed?
According to MND Vault latest article, the QBT Vault has still being audited by PeckShield. Again, to be safe, we may think that this QBT vault launch date “could” be on the same date as Mound Vault launch date (10 Sept).
(3) APR of the QBT tokens in the Mound Vault?
In case anyone needs to understand more about my assumption and my thought process regarding QBT Vault APR prediction, please read my update last week first.
For this week, I will try to predict the QBT Vault APR using the latest Qubit TVL and the new information I’ve read from the latest Mound Vault article. These numbers should be as follows:
- Rewards for BNB/BTC/ETH/USDT/BUSD Single Asset Vaults (SAV) on Qubit Platform= 770,000 QBT per day
- PancakeBunny SAV TVL as-of 4 Sept = 43 million USD which equals to 43 / 1,140 = 3.77% of Qubit Platform.
- According to the latest Mound Vault article, the QBT Vault size for this month will equal to 100,000,000 QBT / 12 = 8.33 Million meaning that PancakeBunny will have 8.33 million qScore
- Since the total qScore on Qubit Platform as-of 4 Sept 2021 6:30UTC is around 4.284 million qScore.
So, the % portion of QBT Vault’s qScore = 8.33 / (4.284 + 8.33) = 66%
- From the 2nd bullet above, the PancakeBunny SAV TVL = 3.77% of Qubit Platform while the qScore of QBT Vault will be 66% of Qubit platform. So, it is “more than enough” to boost 2.5X QBT rewards for PancakeBunny SAV
- % Portion of the QBT Bonus rewards generated by PancakeBunny SAV will be distributed to QBT Vault = 10%
PancakeBunny SAV’s QBT Rewards/day = 770,000 x 3.77% x 2.5x = 72,572
PancakeBunny SAV’s QBT Bonus/day = 72,572 x 1.5 / 2.5 = 43,543
QBT Vault’s QBT Bonus/day = 43,543 x 10% = 4,354 QBT per day
Even only 8.33 millions QBT tokens will be locked in the QBT Vault in this month, but I will calculate the %APR based on the 100,000,000 QBT under the Mound vault.
QBT in MND Vault %APR per day = 4,354 / 100,000,000 = 0.004354%
QBT in MND Vault %APR per year = 0.004354% x 365 = 1.589%
So, you may notice that my prediction indicates that the APR drop from last week which was 4.215% to 1.589% for this week.
The only factor that causes the APR dropping came from the ratio between PancakeBunny SAV TVL vs Qubit Platform TVL drop from 10% to 3.77%.
However, this ratio won’t be at 3.77% rate for too long.
Imagine once the SAV migration from Venus to Qubit is completed (on 10 Sept possibly), the new %APR + Autocompounding feature of these SAV vaults will attract the investors from either Venus or Qubit to “move” their money to deposit on these vaults. So, the PancakeBunny TVL growth rate could be very high after launch on its first week.
(4) Mound Valuation
As-of 4th September 2021 6:30 UTC, the asset in Mound Vault are as follows:
- BUNNY = 3,547,730 tokens @ 7.36 USD : 65% 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 =1,171,337 tokens @ 4.05 USD : 189% APR
- QBT = 100,000,000 tokens @ 0.5000 USD : 0% APR
the MND vault’s asset values = (3,547,730 x 7.36) + (1,171,337 x 4.05) + (100,000,000 x 0.5000) = 80.86 millions USD
MND NAV per token = 80.86 / 2.717 = 29.75 USD
And for every 1 MND token holding, it equals to hold 3 tokens as follows:
- 1.3055 BUNNY
- 0.4310 polyBUNNY
- 36.797 QBT
The current daily rewards in Mound Vault will include:
BUNNY daily rewards = (3,547,730 x 7.36) x (65% / 365 days) = 46,499.56 USD
Note : this is around 6,317 BUNNY tokens per day
polyBUNNY daily rewards = (1,171,337 x 4.05) x (189% / 365 days) = 24,564.38 USD
Note : this is around 6,065 polyBUNNY tokens per day
Total daily rewards = 46,499.56 + 24,564.38= 71,063.94 USD
Daily rewards per MND token = 71,063.94 / 2,717,604 = 0.0261 USD
So, the current %APR for MND vault
= 0.0261 / 29.75 USD per day
= 0.0879 % APR per day
= 32.08 % APR per year
However, once QBT Vault launch on 10 Sept. The daily rewards after 10 Sept will look like below.
QBT daily rewards = (100,000,000 x 0.5000) x(1.589% / 365 days) = 2,176.71 USD
Note : this is around 4,353 QBT tokens per day
Daily rewards after 10 Sept per MND token = (71,063.94 + 2,176.71) / 2,717,604 = 0.0270 USD
So, the %APR after MND vault launch
= 0.0270 / 29.75 USD per day
= 0.0906 % APR per day
= 33.06% APR per year
(5) Claiming Reward Distribution (1st time)
There are many factors that really impact the estimation as follows:
- Bunny Maxi APR dropped from 69% to 65% and could keep dropping to 40.57% APR (= 50% APY)
- QBT Vault launch date will be delayed to 10 Sept or later
- Qubit Platform TVL rapidly increased to 1.1 Billion USD causing the PancakeBunny TVL vs Qubit Platform TVL decrease from 10% to 3.77%
- The consequence of 1.1 Billion Qubit TVL causes the QBT Vault APR prediction dropped from 4.215% to 1.589%
With these new factors, here is my assumption on the accumulated reward distribution per day starting on 10th Sept-10th Oct (assuming that all 2.717 million MND tokens staked in the vault) :
- 585,000 BUNNY / (2,717,604 x 30 days) = 0.00717 BUNNY/MND/day
- 0–180,000 / (2,717,604 x 30 days) = 0–0.0022 polyBUNNY/MND/day
- 0 QBT/MND/day
1) Not counting BUNNY/polyBUNNY/QBT daily rewards we should get from daily farming
2) We might get more rewards if the total MND staked much less than 2,717,604 tokens. I’m guessing it could possibly be around 75–95% MND staked on 10 Sept 4:00UTC (2 hours before Mound vault launch) due to the facts below :
- Someone may not realize they have MND airdrop in their wallet
- Someone may not read the medium article and won’t stake before 10 Sept 4:00UTC
- Someone may decide to leave their MND/BNB LP on PancakeSwap
- I checked the Mound Vault transactions vs Mound token holders, there are only 3,831 stake transactions on MND Vault vs 64,204 MND token holders meaning that there are only 5.9% of MND holders who already staked their MND. I believe there will be more and more holders stake their MND during this week
You may notice that the QBT Vault APR prediction was dropped again from 4.2% to 1.589%.
However, I need to emphasize that this APR drop is purely the consequence of the Qubit Platform TVL increase to 1.1 Billion USD and keep rapidly climbing up.
So, even the Mound team stated that they will lock only 100,000,000 QBT / 12 (= 8.33 Million QBT) for this month seems to be very bad news for our Mound Fam. BUT I would say this APR drop is NOT related to this news because the qScore from these 8.3 million QBT locks are more than enough to boost the QBT rewards on PancakeBunny SAV to 2.5x.
And if we lock all 100 million QBT tokens on the Qubit Platform, it will cause real bad news to the QBT investors who already directly locked their QBT on Qubit platform and will indirectly impact MND investors as well.
Right now, total qScore on Qubit platform is only 4.284 million.
If we lock all 100 million QBT, the % qScore belong to those investors will dramatically drop and their boost rewards may also drop from 2.5X to 1.2X or less than that.
With inattractive rewards, these investors may decide to leave the Qubit platform and go back to Venus or to find other investment for sure. This will ruin the Qubit TVL and QBT price.
Since 1 MND contains 36.797 QBT inside. So, if the QBT price drop, it will directly have negative impact to the MND price as well.
So, is this good decision?
From my opinion, the Mound team decision was not bad. It’s full of very good intention to the whole ecosystem.
However, it would be much better if we can find the way to utilize the remaining 91.67 million QBT tokens somewhere else instead of sitting these tokens in the vault doing nothing.
I still have no idea as well BUT we, our family, should brainstorm to find the better idea to utilize things.
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.
[Mound Related Articles written by the Mound team]
[My MND Articles]
[Mound (MND) in short]
- 2,717,604 tokens fixed supply (All of them have already been minted)
- It will basically hold 3,000,000 BUNNY tokens / 1,000,000 polyBUNNY tokens / 100,000,000 QBT tokens in the vault
- The MND token holders can claim their 1st rewards from the vault first time on 10th September 06:00UTC (could be around 0.00717 BUNNY per MND per day for 30 days)
- On 10th September 2021 06:00UTC , “all” tokens in the Mound vault will being farmed to generate yield for MND token holders
- After the 1st claim, the holders can claim their daily rewards (Around 33% APR)
- In the future (2+ months), the Mound team could add some new project’s token and the fees to the Mound Vault. That means more rewards for the MND token holder in the far future
- In 2 years from now, they “could” have a vote to redeem the tokens from the vault (eg. BUNNY, polyBUNNY, etc.) and return them back to the MND token holder