Hello Mound Fam,
The hacker still hasn’t returned the stolen funds back to the Qubit Finance team plus moving 7,500 ETH to Tornado cash. The latest status (as-of 13-Feb-2022 01:00AM UTC) is that the remaining stolen funds are 22,212.5888 ETH stored in one wallet.
- Qubit Protocol Exploit Reports on 28-Jan / 29-Jan / 31-Jan / 1-Feb
- Theori Blog : Qubit Bridge Post-mortem
- Hacker moved around 7,500 stolen ETH to Tornado on 7-Feb -> Here
- Qubit announced the compensation plan and next steps -> 8-Feb / 11-Feb
- The announcement regarding the Mound dev team restructuring and transform the protocols to DAO -> Here
MND Status as-of 13-Feb-2022
Total MND Staked = 2.189 Million tokens (80.55% of total supplies)
Underlying Assets per 1 MND & APR
- 3 / 2.3 = 1.304 BUNNY/MND : 51% APR
- 100 / 2.3 = 43.478 QBT/MND : 5.38% APR
- 1 / 2.3 = 0.4347 polyBUNNY/MND : 146% APR
- Note : From the hacker’s wallet address, it seems to me like the hacker didn’t borrow any QBT and the 89.5M QBT liquidity still exists on the platform. So, the implication is that the 33.33M QBT belong to the MND vault was not stolen.
Reward Distribution per 1 MND as-of 13 Feb 2022
- 0.00200 BUNNY/MND/day
- 0.00712 QBT/MND/day
- 0.05597 polyBUNNY/MND/month*
MND rewards per day in USD
= [(0.00200 x 0.4408) + (0.00712 x 0.0016) + (0.05597 x 0.075 / 30)]
= 0.001033 USD per MND per day
APR vs MND Market Price = 0.001033 x 365 / 0.3576 = 105.43%
APR vs MND Effective Value = 0.001033 x 365 / 1.1= 34.27%
Reward prediction next week
If we have 1,000 MND staked in the MND Vault, we should get around:
14-Feb-22 = 2.00 BUNNY + 7.12 QBT
15-Feb-22 = 2.00 BUNNY + 7.12 QBT
16-Feb-22 = 1.99 BUNNY + 7.12 QBT + 55.97 polyBUNNY**
17-Feb-22 = 1.99 BUNNY + 7.11 QBT
18-Feb-22 = 1.99 BUNNY + 7.11 QBT
19-Feb-22 = 1.98 BUNNY + 7.11 QBT
16-Mar-22 = 1.93 BUNNY + 6.86 QBT + 53.89 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.
MND/WBNB PCS Liquidity Pool
- 14,820 MND / 13.10 WBNB / APR% = 104.41%
BUNNY/PolyBUNNY/QBT Status as-of 06-Feb-2022
Since all liquidities on Qubit platform (except QBT) were stolen, I will not update the statistics related to the BUNNY Qubit SAV, Qubit Deposit Market and Qubit Borrow Market at the moment. However, the following items can still be tracked:
- bQBT = 52.222M Tokens / QBT Staked= 78.177M Tokens (66.80%)
- QBT in Supply Market = 137.064M tokens / Circulating Supply = 235.608M tokens (58.17%)
- QBT Staked = 78.177M Tokens/ Circulating Supply = 235.608M Tokens (33.18%)
- PancakeBunny xLP : 6 Pools with 1.8M USD TVL
- PancakeBunny Venus Vaults : 5 Pools with 5.7M USD TVL
- polyBUNNY in MND Vault : Accumulated Rewards since 17th Jan 2022 until now (13th Feb 2022 01.00UTC) = 102,448.238 tokens
- 33.33 million QBT tokens (belong to the MND vault) on the QBT Deposit market. The 5th tranch (8.33M QBT) schedule has been delayed due to the exploit.
Accumulated BNB for buying back & burn BUNNY
According to my update on 18-Dec-2021, the estimation shows that the accumulated BNB in our treasury
= 453 + 28 + 12.60 + 5.59 = 499.19 BNB
At the time I am writing this article (06-Feb-2022 12:40UTC), the BUNNY Price is 0.4408USD & the BNB price is 405 USD. So, we can burn around 499.19 x 405 / 0.4408 = 458,647 BUNNY
Accumulated reserved assets on Qubit Platform
Since the liquidities were stolen, I cannot update the Qubit reserved assets at the moment.
Here’s the results from 51 google-form responses last week,
The top 4 responses are:
29.4% : A) The hacker won’t return any pennies to us (29,724.5747 ETH are all gone)
27.5% : D) The hacker requests 8M USD bounty rewards and will return the remaining funds (88–8M = 80M USD at the moment)
11.8% : C) The hacker accepts the 2M USD bounty rewards and return 29,724.5747 ETH
9.8% : H) The Qubit, Binance and the partners will be able to capture the hacker and get all those funds back
As for now, the hacker already moved 7,500 ETH (or around 25M USD) to Tornado Cash, so it seems like the hacker thinks like the majority of the voting results (he will take them all OR he will need more than 8M USD).
According to the the article regarding compensation and bounty, the team already officially announced a bounty rewards with maximum 500K USD for any key information to identify the hacker.
In my opinion, the team may think that there will be many people provide the key information (let’s assume 10 bounty hunters = 10 x 500K = 5M USD). Plus, those stolen funds belong to the investors not their money, that’s why the team need to set maximum bounty that the team can afford to pay for the bounty.
However, since I do believe the time has its price. Plus, the 57% voting results already thought that the hacker will take around 8M USD or take them all.
So, I think that it does make sense for the team to try proposing the voting to increase the bounty rewards by setting the rewards in 2 categories as follows:
- To Provide some key information that can/might lead to the exploiter identity : 500K USD maximum as prior
- To “hunt” the hacker (fully and obviously identify the hacker identity) : “8M USD paid by the stolen funds”
I do believe more than 60% of the Qubit investors/holders will immediately accept that.
According to the DAO things from the latest article, here are the implications I got.
[To BUNNY/polyBUNNY/QBT/MND token holders]
- BUNNY/polyBUNNY tokens will be capped
- BUNNY/polyBUNNY maxi pool APR will depend on the 0.9% auto-compounding fee & 0.9% withdraw-before-72-hours-fee charged from the Vault investors
- BUNNY/BNB LP and polyBUNNY/ETH will depend on the 0.1% auto-compounding fee & 0.1% withdraw-before-72-hours-fee charged from the Vault investors
- BUNNY maxi pool rewards will be paid in BUNNY and BNB (I guess in 50:50 ratio)
- polyBUNNY maxi pool rewards will be paid in polyBUNNY and ETH (I guess in 50:50 ratio)
- QBT stakers (on Qubit locker) should get the protocol fee sharing aka Qubit reserves got from the Qubit new markets (could be in term of BNB and/or other tokens)
- MND vault rewards will be distributed as BUNNY / BNB / polyBUNNY / ETH / QBT Reserves (in term of BNB and/or other tokens)
- MND/BNB LP will be increased (Wait for the team to confirm they will unstake 15% or 100% of their MND to create MND/BNB LP)
[To the investors on PancakeBunny and Qubit platforms]
- The investors on PCB Qubit SAV pools will get compensation from the team
- The investors on Qubit Deposit Market will get compenstation from the team
- The investors can use the new Qubit markets to deposit/borrow their assets
- The investors will no longer be able to invest on the xLP (Leveraged Yield Farming) pools
- The investors on all PancakeBunny vaults (except BUNNY maxiand BUNNY/BNB pools) will no longer get BUNNY rewards and 1% of their rewards will be charged as auto-compounding fees
- The investors on all polyBunny vaults (except polyBUNNY maxi and polyBUNNY/ETH pools) will no longer get polyBUNNY rewards and 1% of their rewards will be charged as auto-compounding fees
Lastly, in my opinion, after the DAO implementation, the TVL of the BSC-BUNNY/polyBUNNY/QBT will be dramatically dropped for sure.
However, the good things are the BUNNY/polyBUNNY/QBT/MND holders will start receiving the bluechip tokens (such as BNB/ETH/etc.) as the rewards.
So, we need to bet on our services and the investor’s trust after implementing the BUNNY fee structure changes and the new Qubit markets.
I do hope that the investors will still see some values of auto-compounding feature on PancakeBunny and the user-friendly deposit/borrow features on Qubit. I do understand that it is almost impossible to regain trust after 3 hacks BUT who knows…
Hope for the best, prepare for the worst, guys.
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.