Mound (MND) Update as-of 12-Dec-2021
Hello Mound Fam,
The In-chain Multiplexer (Leveraged Farming) feature seems to be delayed to launch on 15-Dec-2021. So, we will have 2 good news coming together next week!!!
News
- In-Chain Multiplexer (Leveraged Yield Farming) on PancakeBunny will be launched on 15 Dec 2021 -> Link
- Qubit — X-Collateral, the game changer feature will be launched before 19 Dec 2021 -> Link
MND Status as-of 12-Dec-2021
TVL (Total Value Locked) = 9.104 Million USD
BUNNY tokens = 3 Million tokens
QBT tokens = 100 Million tokens
polyBUNNY tokens = 1 Million tokens
Total MND Staked = 2.246 Million tokens (82.646% of total supplies)
Effective value of MND token (TVL / MND tokens) = 3.35 USD
Current Market Price = 1.94 USD
Pay BUNNY Rewards = 0.0024 BUNNY/MND/day
Pay QBT Rewards = 0.0089 QBT/MND/day
Pay polyBUNNY Rewards = 0.0609 polyBUNNY/MND/month*
MND/WBNB PCS Liquidity Pool Statistics:
- MND tokens = 11,910 MND
- WBNB tokens = 40.85 WBNB
- APR% = 57.47%
BUNNY/PolyBUNNY/QBT Status as-of 12-Dec-2021
- PCB SAV TVL = 115M USD / Qubit TVL = 400.5M USD
- The ratio of PCB SAV TVL / Qubit TVL = 28.71%
- bQBT = 33.802M Tokens / total qScore = 41.892M scores
- The ratio of bQBT / total qScore= 80.68%
- QBT in Supply Market = 101.649M tokens
- polyBUNNY in MND Vault : 26-days Accumulated Rewards = 44,899 + 77,681 = 122,580 tokens. For 30 days, we should get around 140,000 tokens.
- 25 million QBT tokens (belong to the MND vault) within the QBT Deposit market.
- BUNNY Supply Net Rate = 54.52%, Borrow Net Rate = -4.80%
- 147,656 BUNNY in Supply market / 71,942 BUNNY tokens are borrowed or 48.72% BUNNY tokens are borrowed.
Accumulated BNB for buying back & burn BUNNY
So far, we have had 4 income streams for accumulating the BNBs for buying back and burn our beloved BUNNY tokens as follows:
- Cantata : Busy Bunnies minted = (3,121 minted items - 856 items for marketing purpose**) x 0.2 BNB = 2,265 x 0.2 = 453 BNB
**Thanks to Mitten for providing Busy Bunnies Contract so we can track the accumulated BNB accurately.
- Last time, on 14 Sept 2021, we burned 11,281 BUNNY using the 2.5months accumulated fees from the no-loss pots. So, for this time, I’m guessing that 3 months accumulated fees from no-loss pots could burn approximately 10,000–15,000 BUNNY or around 28–42 BNB.
- For now, the Auction Lowest Bid for each Wine NFT = 1.05 BNB, so we will collect 1.05 BNB x 9 Wine NFTs = 9.45 BNB.
- BUNNY Prediction Market : Treasury Amounts = 5.49BNB.
My estimation shows that the accumulated BNB in our treasury
= 453 + 28 + 9.45 + 5.49 = 495.94 BNB
At the time I am writing this article (12-Dec-2021 08:00UTC), the BUNNY Price is 1.587 USD & the BNB price is 566 USD. So, we can burn around 495.94 x 566 / 1.587 = 176,875 BUNNY
MND Valuation as-of 12-Dec-2021
The underlying assets in the Mound Vault are as follows:
- BUNNY = 3,000,000 tokens @ 1.59 USD : 54% 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 - QBT = 100,000,000 tokens @ 0.022 USD : 5.28% APR
Note: After monitoring the results, the QBT reward rate has been declined from 0.0095 QBT/MND (5 Dec 2021) to 0.0089 QBT/MND (12 Dec 2021) and my model indicates that the reward rate could keep being declined to 0.0065 QBT/MND or 5.28% APR. - polyBUNNY = 1,000,000 tokens @ 0.44 USD : 171% 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.
the MND vault’s asset values = (3,000,000 x 1.59) + (100,000,000 x 0.022) + (1,000,000 x 0.44) = 7.41 millions USD
So far, there are only 2.246 Million MND tokens staked in the Mound Vault and less than 20,000 MND tokens in form of MND/WBNB LP. However, to be conservative, we will assume that there will eventually be around 2.3 Million MND staked to the vault.
MND NAV per token = 7.41 / 2.3 = 3.22 USD
And for every 1 MND token holding, it equals to hold 3 tokens as follows:
- 3 / 2.3 = 1.304 BUNNY
- 100 / 2.3 = 43.478 QBT
- 1 / 2.3 = 0.4347 polyBUNNY
The current daily rewards in Mound Vault will include:
BUNNY daily rewards = (3,000,000 x 1.59) x (54% / 365 days) = 7,056 USD
= 4,438 BUNNY tokens per day
= 4,438 / 2,300,000 = 0.00193 BUNNY/MND/day
= 1.93 BUNNY per 1,000 MND per day
QBT daily rewards = (100,000,000 x 0.022) x(5.28% / 365 days) = 318 USD
= 14,465 QBT tokens per day
= 14,465 / 2,300,000 = 0.00628 QBT/MND/day
= 6.28 QBT per 1,000 MND per day
polyBUNNY daily rewards = (1,000,000 x 0.44) x (171% / 365 days) = 2,061 USD
= 4,684 polyBUNNY tokens per day
= 4,684 / 2,300,000 = 0.00203 polyBUNNY/MND/day
= 2.03 polyBUNNY per 1,000 MND per day
= 60.9 polyBUNNY per 1,000 MND per 30 days
Daily rewards per MND token = (7,056 + 318 + 2,061) / 2,300,000 = 0.00410 USD
APR vs MND effective value = (0.00410 x 365 days) / 3.22= 46.47%
APR vs MND market price = (0.00410 x 365 days) / 1.94 = 77.13%
MND Vault Reward Prediction next week
Using the 30-days-amortization reward distribution method, we can then predict the reward per MND during 13–19 Dec 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:
13-Dec-21 = 2.4 BUNNY + 8.8 QBT
14-Dec-21 = 2.4 BUNNY + 8.7 QBT
15-Dec-21 = 2.3 BUNNY + 8.6 QBT
16-Dec-21 = 2.3 BUNNY + 8.5 QBT + 65.6 polyBUNNY**
17-Dec-21 = 2.3 BUNNY + 8.5 QBT
18-Dec-21 = 2.3 BUNNY + 8.4 QBT
19-Dec-21 = 2.3 BUNNY + 8.3 QBT
…
16-Jan-22 = 2.1 BUNNY + 6.9 QBT + 69.2 polyBUNNY**
** According to the PolyBunny Farming & Reward Distribution Mechanism mentioned in the team’s article, the polyBUNNY monthly rewards will be distributed on 16th of each month.
Thoughts
For the next week, the “BUNNY In-Chain Multiplexer” and “Qubit Cross-Chain Lending” features will be launched on 15-Dec-2021 and 19-Dec-2021 repectively.
Firstly, the “BUNNY In-Chain Multiplexer” feature,
My assumption is that the PancakeBunny platform itself will open the new LP pools (Quite similar concept as their Qubit Single Asset Vaults) so it will utilize the xLP feature on Qubit by posting their asset “A” as collateral on Qubit market and then borrow the asset “B” to create “A-B LP on PCS” and on every X hours, repeat the steps by using the CAKE rewards from PCS to collateralize & create more “A-B LP” then reinvest these LPs back to the pool.
If this is the case, I’m guessing there will be positive impacts to BUNNY, bQBT, QBT and MND as follows:
- To bQBT : The more pools on PCB, the more deposit & borrowing powers, the more QBT rewards shared to bQBT & bQBT/BNB stakers
- To BUNNY : It seems like the In-Chain Multiplexer could charge the protocol fees for buying back and burn the BUNNY tokens
- To QBT : The more deposit & borrowing powers, the more TVL & protocol fees being generated
- To MND : If the In-Chain Multiplexer charge the protocol fees, the MND vault should receive a portion of the fees as well (according to the MND Vault Introduction : Item 2.1)
Secondly, the “Qubit Cross-Chain Lending” feature,
I think this feature will be our game changer feature that will dramatically boost the Qubit TVL “only if” we do aggressively advertise & partnership with the top Defi platforms on ETH chain such as Aave, Uniswap and Compound.
If the partnership is well established and advertised, we should expect the very large funds flowing into Qubit on BSC.
One more thing, after launching the “In-chain Multiplexer on PancakeBunny” and “Qubit Cross-chain Lending” features, the next step that will be another game changer for PancakeBunny could be the “Cross-Chain Multiplexer on PancakeBunny”. If the team decide to launch this feature by this month, it will bring much larger funds flowing into both PancakeBunny and Qubit. This real game-changer feature will easily recover both TVL and price of BUNNY (Not counting our accumulated BNB for burning the BUNNY soon).
IMPORTANT : These are my assumptions that could be wrong. So, please wait for the official announcement of this feature.
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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