Mound (MND) Update as-of 09-Oct-2021
Hello Mound Fam,
Our PancakeBunny’s Qubit SAV TVL is now growing from 165M to 220M USD!!! Thanks to the additional 50% QBT reward boosted by the Mound team.
Plus, there will be so many events in upcoming weeks such as the 25% QBT collateral ratio initiative on 12th Oct, the Qubit network expansion on 26th Oct, the cross-chain lending service at the end of Oct, Allowing other BSC DApps to use our Qubit lending service in November. All these events will directly & indirectly grow our Mound ecosystem.
So, yeah…
Hope for the best, Prepare for the worst!!!
Highlights this week
- PancakeBunny’s Qubit SAV TVL as-of 9 Oct 2021 03:40 UTC climb up from 165M last week to 220M USD -> Link
Note : Read more about Qubit SAV here - The principal + rewards of polyBUNNY tokens (in polyBUNNY maxi pool) held by the Dev team = 930,049 + 569,545 = 1,499,594 tokens. Plus, additional “25,380” polyBUNNY sitting in the wallet without farming -> Link
- The QBT collateral ratio will change from 0% to 25% on 12th October 2021 (Delayed from 4th to 12th Oct). Plus, Qubit Network expansion and cross-chain lending at the end of October 2021-> Link
Mound Vault TVL & Status
As-of 9th October 2021 03:45 UTC, the Mound Vault numbers are as follows:
TVL (Total Value Locked) = 19.975 Million USD
BUNNY tokens = 3 Million tokens
QBT tokens = 100 Million tokens
Total MND Staked = 2.210 Million tokens (Around 81.3% of total supplies)
Effective value of MND token (TVL / MND tokens) = 7.35 USD
Current Market Price = 6.46 USD
Pay BUNNY Rewards = 0.0049 BUNNY/MND
Pay QBT Rewards = 0.0099 QBT/MND
MND APR vs Market Price = 117.92%
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 2 Oct 2021 until now (9 Oct 2021), it seems like the polyBunny minted to the Dev wallet is around 1,700 tokens per day in average.
First theory : Reverse calculation tokens minted to dev from total supply
As-of October 9th, 2021 03:55UTC, the total polyBUNNY supply is around 6,708,290 tokens. With this number, it means there are 6,708,290 x (0.15 / 1.15) = 874,994 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 (1,000,000–874,994) / 1,700 = 73.5 days (Around 23th Dec 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 that.
Second theory : Stick with the principal tokens in Dev Wallet
As-of October 9th, 2021 03:55UTC, the total polyBUNNY principal in the Dev wallet is around 953,046 tokens. If they use this approach to decide when they will add the tokens to MND vault, we will need to wait for (1,000,000–953,046) / 1,700 = 28 days (Around 6th Nov 2021)
(2) QBT Rewards in the Mound Vault?
After monitoring the results, we’ve kept getting better and better QBT reward rate from 0.0084 QBT/MND last week to 0.0099 QBT/MND today (9 Oct 2021). Since there is the 50% boost rewards, we will keep getting much better rate in upcoming weeks (Could be around 0.0142 QBT/MND on 26 Oct). However, after 26 Oct, my model indicates that the reward rate should steadily decline to around 0.011 QBT/MND/day or 8.833% APR.
(3) Mound Valuation & Daily Reward generation
As-of 9-Oct-2021 03:45 UTC, the asset in Mound Vault are as follows:
- BUNNY = 3,000,000 tokens @ 4.30USD : 60% 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 @ 1.72 USD : 168% 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 @ 0.066 USD : 8.833% 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 4.30) + (100,000,000 x 0.066) = 19.50 millions USD
So far, there are only 2.210 Million MND tokens staked in the Mound Vault and around 6,000 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) + 2.210 (MND staked)] = 2.4635
MND NAV per token = 19.50 / 2.4635 = 7.915 USD
And for every 1 MND token holding, it equals to hold 3 tokens as follows:
- 3 / 2.4635 = 1.217 BUNNY
- 0 / 2.4635 = 0 polyBUNNY
- 100 / 2.4635 = 40.592 QBT
The current daily rewards in Mound Vault will include:
BUNNY daily rewards = (3,000,000 x 4.30) x (60% / 365 days) = 21,205 USD
Note : this is around 4,931 BUNNY tokens per day
QBT daily rewards = (100,000,000 x 0.066) x(8.833% / 365 days) = 1,597.20 USD
Note : this is around 24,200 QBT tokens per day
polyBUNNY daily rewards = 0 USD
Note : this is around 0 polyBUNNY tokens per day
Daily rewards per MND token = (21,205 + 1,597.20) / 2,463,500 = 0.00925 USD
So, the %APR of MND Vault could be as follows:
= 0.00925 / 7.915 USD per day
= 0.1168 % APR per day
= 42.65% APR per year
Note :
- The MND vault APR will eventually decline to this rate after all accumulated BUNNY rewards before 1st claim date are all distributed. It won’t be empty immediately after 10 Oct but it will steadily be declined to this rate in upcoming months.
(4) MND Vault Reward Prediction
Using the 30-days-amortization reward distribution method, we can then predict the reward per MND during 9–16 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:
09-Oct-21 = 4.9 BUNNY + 9.9 QBT
10-Oct-21 = 4.8 BUNNY + 10.1 QBT
11-Oct-21 = 4.7 BUNNY + 10.3 QBT
12-Oct-21 = 4.6 BUNNY + 10.5 QBT
13-Oct-21 = 4.5 BUNNY + 10.7 QBT
14-Oct-21 = 4.4 BUNNY + 10.9 QBT
15-Oct-21 = 4.3 BUNNY + 11.1 QBT
16-Oct-21 = 4.3 BUNNY + 11.3 QBT
Note : I counted the 50% boosted rewards during 5–26 Oct 2021 in my prediction
(5) Summary
With the additional 50% boosted QBT rewards during 5–26 Oct 2021 and launchpad event on Binance has been finished, it seems like the PCB SAV TVL begin to grow from 165M USD last week to 220M USD today (9 Oct 2021 03:45UTC) and keep growing.
Plus, according to the “Qubit Quarterly Roadmap” article, the maximum borrowing power we will get from the QBT collateral on 12 Oct 2021 will be
0.25 x min(0.15USD , QBT price)
So, for example, if we deposit and post QBT as collateral in the following scenarios, we will get the borrowing power as shown below:
A: Deposit 1,000 QBT@0.066 USD
Borrowing power = 0.25 x 0.066 x 1,000 = 16.5 USD
B: Deposit 1,000 QBT@0.15 USD
Borrowing power = 0.25 x 0.15 x 1,000 = 37.5 USD
C: Deposit 1,000 QBT@0.60 USD***
Borrowing power = 0.25 x 0.15 x 1,000 = 37.5 USD***
This formula will help to prevent someone who may try manipulating the QBT price to liquidate the borrowers who use their QBT as collateral. Hopefully, this 25% QBT collateral initiative will go well. And, yes, hopefully, our MND vault will have new strategy to better utilize our QBT instead of just adding them to the QBT Deposit market.
In this Qubit roadmap article, the team also mentioned that the first Qubit network expansion and cross-chain lending are planning to be completed by the end of October, it seems like there will be much more borrowing demands from either new chain (Klatyn or Polygon) or other BSC Dapps on November or upcoming month.
So, we can expect more borrowers on Qubit platform soon. The more borrowing demands, the more healthy and juicy APR for everyone, I guess :)
Again, Hope for the best, Prepare for the worst!!!
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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