Mound (MND) Update as-of 14-Aug-2021
Hello Mound Fam,
For the update this week, I will try to cover three main topics below.
- 1 million polyBunny tokens hasn’t been added to the Mound Vault yet?
- APR of the QBT tokens in the Mound Vault?
- The synergy of QBT & BUNNY?
Anyway, let’s begin with our norm first!!
Highlights this week
- QBT Audit has been completed by Peckshield -> Link
- The principal + rewards of polyBUNNY tokens (in polyBUNNY maxi pool) held by the Dev team already reached 1 million tokens -> Link
- The Dev team propose the voting to mint the BUNNY tokens value 100,000 USD so we can expand the Bunny community to Mdex and Huobi Eco-Chain -> Link
Mound TVL & Status
As-of 14 August 2021 11:10 UTC, the TVL (Total Value Locked) in Mound Vault is 80.01 Millions USD including 3.382M BUNNY tokens plus 100M QBT tokens. The polyBUNNY tokens still have not been included in the vault yet. The Mound vault website is now showing the Effective value of MND token (MND TVL / number of MND tokens) of 29.44 USD and the accumulated farming rewards of 382,040 BUNNY tokens or 0.14 BUNNY per MND token
Insights
(1) When will 1 million polyBUNNY tokens be added to the Mound Vault?
The BUNNY deployer wallet has already reached 1 million polyBUNNY tokens on polyBunny Maxi pool and keep receiving the rewards around 6–7k tokens in daily basis.
However, the tokens have not been added to the Mound Vault yet. In our Discord and Telegram community, I think we have had 3 theories that the Dev team could add the polyBunny tokens to the Mound vault as follows:
First Theory : Only when the “minted” polyBUNNY tokens in the Dev Wallet reached 1 million tokens.
[My thought] Currently, total supply of polyBunny tokens = 5.814 million tokens. So, the tokens minted to Dev Wallet = 5.814M x (15 / 115) = 758,347 tokens. However, the Dev team burned 320,500 tokens minted from the flash-loan attack. So the current minted tokens to Dev wallet = 758,347–320,500 = 437,847 tokens. So, it will take us months or a year to reach 1 million tokens with this approach. This is in contradiction with what stated in the 3rd item of Mound Mini FAQ article below. With this theory, they won’t make it by 10 Sept (the date of the first claim). So, I have to disagree with this assumption.
Second Theory : Only when the “principal” polyBUNNY tokens in the Dev Wallet reached 1 million tokens.
[My thought] Currently, the principal of polyBunny tokens in the Dev Wallet under the Maxi Pool = 813,902 tokens. And the principal keep increasing around 2k tokens per day. So, it will take us 100 more days (3+ months) to reach 1 million tokens with this approach. This is in contradiction with what stated in the 3rd item of Mound Mini FAQ article. With this theory, they won’t make it by 10 Sept (the date of the first claim) as well. So, I have to disagree with this assumption.
Third Theory : Only when the Mound Vault nearly or already launched
[My thought] The team’s portion of polyBUNNY already reached 1 million tokens. However, there could be some obstacle or additional development efforts/prerequisites that need to be done before adding these tokens to the Mound Vault. Another possibility is that the Dev team could intentionally set the timeline to add the tokens to the Vault near the launch date for marketing purpose. Anyway, this theory aligns with what stated in the 3rd item in the Mound Mini FAQ article. With this theory, they can make it on the launch date (10 Sept) or prior. Plus, they can pay “a portion of the allocated polyBUNNY” on the first claim as mentioned in the 1st item in their own article as well.
In summary, I believe in the third theory that the team will add 1 million polyBUNNY tokens to the Mound Vault near or at the launch date (10 September 2021). Plus, on the first claim date, we will get the rewards in both BUNNY and “a portion of the allocated polyBUNNY”.
Accumulated BUNNY Rewards on 10 Sept will be around 700,000 tokens. So, we should get around 700,000 / 2,717,604 = 0.257 BUNNY per MND token
Accumulated polyBUNNY Rewards on 10 Sept will be less than 180,000 tokens. So, we should get around 180,000 / 2,717,604 = 0.066 polyBUNNY per MND token or less than that.
(2) When will 100M Qubit tokens (in the Mound Vault) being farmed?
The Dev team answered this in the 5th item in their MND Mini FAQ Article that the date should be at or soon after the launch of Qubit. Since the Qubit platform has been completely audited by Peckshield. Plus, the Qubit platform already passed 4 from 6 steps in the Mound security regime. One remaining item for them is to resolve the issues identified by the audits and bounty program. My guess is that the Qubit platform could be launched after the BSC Security Summit event (around Aug 19th, 2021 at 3pm UTC) or soon after that.
In summary, I expect the Qubit platform to be launched around August 19th, 2021 or soon after that. It won’t be late to September 2021 since they already completed the Audit by Peckshield.
IMPORTANT : If the Dev team is planning to wait for the 2nd audit as well, the Qubit Platform launch date could be delayed to September 2021.
(3) How will 100M Qubit tokens (in the Mound Vault) being farmed?
According to the 5th and 6th items in MND Mini FAQ Article, there will be a QBT Vault created in the PancakeBunny website to generate a stable, high qScore for all of the assets staked to the PancakeBunny SAVs.
Note: For anyone who needs to understand more about how the QBT Vault will benefit the the MND token stakers, please read my “Mound (MND) Vault Mechanisms & Rewards” article.
(4) Mound Valuation
As-of 14th August 2021 11:10 UTC, the asset in Mound Vault are as follows:
- BUNNY = 3,382,040 tokens @ 9.92 USD : 156.76% APR
- polyBUNNY =1,007,523 tokens @ 5.33 USD : 211% APR
- QBT = 100,000,000 tokens @ 0.4653 USD : 0% APR
the MND vault’s asset values = (3,382,040 x 9.92) + (1,007,523 x 5.33) + (100,000,000 x 0.4653) = 85.45 millions USD
MND NAV per token = 85.45 / 2.717 = 31.44 USD
And for every 1 MND token holding, it equals to hold 3 tokens as follows:
- 1.2445 BUNNY
- 0.3707 polyBUNNY
- 36.797 QBT
The current daily rewards in Mound Vault will include:
BUNNY daily rewards = 3,382,040 x 9.92) x(156.76% / 365 days) = 144,089.66 USD
polyBUNNY daily rewards = (1,007,523 x 5.33) x (211% / 365 days) = 31,043.58 USD
Total daily rewards = 144,089.66 + 31,043.58 = 175,133.24 USD
Daily rewards per MND token = 175,133.24 / 2,717,604 = 0.0644 USD
So, the current %APR for MND vault
= 0.0644 / 31.44 USD per day
= 0.2050 % APR per day
= 74.81% APR per year
(5) Claiming Mechanism
According to the Mound Vault countdown, the MND token holders should be able to start claiming their rewards by 10th September 0:00UTC.
- Claiming rewards could be distributed as x BUNNY tokens, y polyBUNNY tokens and z QBT tokens
- polyBUNNY rewards can be claimed in the Polygon network (Switch wallet network in the Mound Vault Website). The polyBUNNY rewards will NOT be wrapped to BSC token.
- Claiming Frequency could be in daily basis
- We can expect a “claim” button in Mound Vault website to claim the rewards as we have had on the pBUNNY compensation pool
(6) Claiming Reward Distribution (1st time)
As stated in the 1st item in the MND Mini FAQ article, we should expect the first claim that will consist of BUNNY and a portion of the allocated polyBUNNY. For the estimated rewards, since I believe in the third theory mentioned in above 1st Insight. So, per 1 MND token, we should get our first claim rewards around 0.257 BUNNY + 0.066 polyBUNNY (or less).
(7) APR of the QBT tokens in the Mound Vault
According to QBT Gitbook, there will be around 1.6 million QBT tokens emitted as the daily rewards for QBT Suppliers and Borrowers (Not count 410K QBT tokens emitted to Dev team in daily basis).
On the Qubit launch date, the deposit amounts in the PancakeBunny Single Asset Vaults (SAV) such as BNB, ETH, BUSD, USDT vaults will be switched from “Venus” to “Qubit”. I assume these amounts will cover around 80% of total deposit amounts in Qubit platform. So, the 80% of the daily QBT rewards (1.6 million x 80% = 1.28 million tokens) could be distributed to these SAV vaults. However, the rewards can be broken into 2 categories:
1) Basic QBT rewards
2) Bonus QBT rewards from qScore
Since, for now, the total QBT circulation supplies are around 175 million tokens. Plus, after Qubit platform launch, the 100 million QBT tokens will be locked to get very high qScore for 2 years. the MND vault’s qScore ratio compared to total qScore will be around 57% (came from 100 / 175).
With below formula, if we assume that the PancakeBunny SAV amounts (l) will be around 80% of total deposit/borrow amounts in Qubit Platform (L), we can then predict the basic rewards and the bonus rewards using below calculation by letting L = l / 0.8
QBT rewards= min(l, l x 0.4 + (l / 0.8) x (100 / 175) x 0.6)
QBT rewards= min(l, l x 0.4 + l x 0.428) = l x 0.828
QBT rewards= basic rewards (l x 0.4) + bonus rewards (l x 0.428)
Bonus Rewards / All Rewards = 0.428 / 0.828 = 51.69%
Since I assume that the QBT daily rewards to PancakeBunny SAV will be 1.28 million tokens. So, the QBT bonus rewards will be 1.28 x 51.69% = 661,632 tokens per day.
So, the daily QBT rewards per MND token will be 661,632 QBT / 2,717,604
= 0.2434 QBT per MND token per day
Since 1 MND hold 36.797 QBT, so the QBT %APR daily rewards will be
= 0.2434 / 36.797
= 0.66% APR per day
= 0.66% x 365 days= 240.90% APR per year
In summary, if 100% of the “Bonus” QBT rewards generated by the PancakeBunny SAV Vaults will be distributed to MND token holder (thru QBT Vault), the max APR for QBT Vault will possibly be 240.90%. However, if the “portion” of the bonus will be distributed to MND token holder, let’s say 30–50% of the bonus, the APR will be dropped to around 72.27–120.45%.
Note : For more Mound Vault mechanism explanation, you may find the details in my “Mound (MND) Vault Mechanisms & Rewards” article
(8) The synergy of QBT & BUNNY
According to (7) QBT APR, you may notice that once the Qubit launch, the deposit amounts in the PancakeBunny SAV Vaults will be switched from “Venus” to “Qubit” platform. Since the Qubit has no withdrawal fees + provide higher rewards than Venus, the PancakeBunny SAV Vaults APR will be much higher.
The more SAV APR, the more TVL.
The more TVL, the more performance fee.
The more performance fee, the more Bunny Maxi APR.
The more Bunny Maxi APR, the more BUNNY price!
Again, 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 to our family.
Regards,
Hope
[Mound Related Articles written by the Mound team]
25th June 2021 : Introducing the Mound (MND) Vault
3rd July 2021 : Mound (MND) FAQ — Swap BUNNY for MND at 1.5x!
19th July 2021 : Updates from Devs : Qubit Launch & Mound Vault
23th July 2021 : MND Week 4 — Final Days to Swap BUNNY for MND!
26th July 2021 : The Next Chapter: MND Distribution
27th July 2021 : PolyBUNNY Recovery — The Burn and MND Compensation
29th July 2021 : polyBUNNY & pBUNNY MND Compensation
3rd August 2021 : Mound Weekly Bulletin — Aug 3rd 2021
8th August 2021 : MND Vault Mini FAQ
[My MND Articles]
Mound (MND) Vault Mechanisms & Rewards
[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 (could be around 0.257 BUNNY and 0.066 polyBUNNY per MND token)
- On 10th September 2021, “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 (could be around 0.06–0.08 USD per MND token)
- In the future (2+ months), the Mound team could add some new project’s token 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