Mound (MND) Update as-of 14-Nov-2021

Hello Mound Fam,

The first game partnership event, REVV Racing, has been a great start to convince people to stake their BUNNY tokens to get REVV and cars. Plus, someone even bought the ticket to draw the car (paid by BUNNY token). In total, it’s around 483,000 BUNNY!!! (3.66% of total BUNNY supplies). Looking forward to see how the upcoming events such as cantata NFT event on 24th Nov and the next game partnership will help stabilizing the BUNNY ecosystem.

BUNNY Arcade

News

  • REVV Racing : Staking BUNNY to earn REVV, getting the NFT (Bunny cars) -> Here and Here
  • BUNNY UI Update -> Link

MND Status as-of 14-Nov-2021

TVL (Total Value Locked) = 15.497 Million USD
BUNNY tokens = 3 Million tokens
QBT tokens = 100 Million tokens
Total MND Staked = 2.241 Million tokens (82.46% of total supplies)

Effective value of MND token (TVL / MND tokens) = 5.70 USD
Current Market Price = 3.28 USD

Pay BUNNY Rewards = 0.0029 BUNNY/MND
Pay QBT Rewards = 0.0122 QBT/MND
Add polyBUNNY on approx. 15 Nov 2021
MND APR vs Market Price = 95.58%

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

Mound Stats as-of 14th Nov 2021 10:45 UTC

MND/WBNB PCS Liquidity Pool Statistics:

  • MND tokens = 9,280 MND
  • WBNB tokens = 48.00 WBNB
  • APR% = 122.22%
MND/WBNB PCS Liquidity Pool

PCB/QBT/polyBunny Status as-of 14 Nov 2021

  • Accumulated treasury amounts from Prediction Market increased from 3.9131 (6 Nov 2021) to 4.1688 BNB (14 Nov 2021).
Prediction Market Treasury Amount
PCB vs Qubit Stats as-of 14 Nov 2021
  • The PolyBunny Maxi pool’s principal held by the Dev team = 997,858 tokens
  • Estimated polyBUNNY tokens minted to Dev Wallet = 1,500 tokens per day
  • Days Left to reach 1M polyBUNNY on principal side = 1.428 days (Around 15 Nov 2021)
Dev Wallet : polyBunny Principals

MND Valuation as-of 14 Nov 2021

The underlying assets in the Mound Vault are as follows:

  • BUNNY = 3,000,000 tokens @ 2.71 USD : 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 @ 1.074 USD : 155% 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 @ 0.057 USD : 5.28% APR
    Note: After monitoring the results, the QBT reward rate has been declined from 0.0137 QBT/MND (6 Nov 2021) to 0.0122 QBT/MND (14 Nov 2021) and my model indicates that the reward rate could keep being declined to 0.0065 QBT/MND or 5.28% APR.

the MND vault’s asset values = (3,000,000 x 2.71) + (100,000,000 x 0.057) = 13.83 millions USD

So far, there are only 2.241 Million MND tokens staked in the Mound Vault and around 9,280 MND tokens in form of MND/WBNB LP. So we may begin to assume that the remaining MND tokens won’t be staked forever.

MND averaged tokens = 0.5 x [2.717 (Total Supply) + 2.241 (MND staked) + 0.009 (MND Liquidity) ] = 2.4835

MND NAV per token = 13.83 / 2.4835 = 5.5687 USD

And for every 1 MND token holding, it equals to hold 3 tokens as follows:

  • 3 / 2.4835 = 1.2079 BUNNY
  • 0 / 2.4835 = 0 polyBUNNY
  • 100 / 2.4835 = 40.2657 QBT

The current daily rewards in Mound Vault will include:

BUNNY daily rewards = (3,000,000 x 2.71) x (60% / 365 days) = 13,364 USD
Note : this is around 4,931 BUNNY tokens per day

QBT daily rewards = (100,000,000 x 0.057) x(5.28% / 365 days) = 824.5 USD
Note : this is around 14,465 QBT tokens per day

polyBUNNY daily rewards = 0 USD
Note : this is around 0 polyBUNNY tokens per day

Daily rewards per MND token = (13,364 + 824.5) / 2,483,500 = 0.00571 USD

So, the %APR of MND Vault could be as follows:

= 0.00571 / 5.5687 USD per day

= 0.1025 % APR per day

= 37.44% APR per year

MND Valuation as-if we have polyBUNNY added to the vault

Someone may ask, what if we have polyBUNNY added to the MND vault, how much NAV and APR?

Here it is…

MND NAV per token = (3,000,000 x 2.71) + (100,000,000 x 0.057) + (1,000,000 x 1.074) / 2.4835 = 6.001 USD

And for every 1 MND token holding, it equals to hold 3 tokens as follows:

  • 3 / 2.4835 = 1.2079 BUNNY
  • 1 / 2.4835 = 0.4026 polyBUNNY
  • 100 / 2.4835 = 40.2657 QBT

polyBUNNY daily rewards = (1,000,000 x 1.074) x (155% / 365 days) = 4,560 USD
Note : this is around 4,246 polyBUNNY tokens per day

So, if we include polyBUNNY to the MND vault,

Daily rewards per MND token = (13,364 + 824.5 + 4,560) / 2,483,500 = 0.0075 USD

So, the %APR of MND Vault could be as follows:

= 0.0075 / 6.001 USD per day

= 0.1249 % APR per day

= 45.58% 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 2021 but it will steadily be declined to this rate in upcoming months.
  • This APR is calculated against MND NAV (which is 6.001 USD). So, if we calculate the APR vs MND market price (which is less than 5 USD), we should get much better rate.

MND Vault Reward Prediction next week

Using the 30-days-amortization reward distribution method, we can then predict the reward per MND during 15–21 Nov 2021 as shown in the table below.

30-Days-Amortization reward rate prediction on 15–21 Nov 2021

In simpler term, if we have 1,000 MND staked in the MND Vault, we should get around:

15-Nov-21 = 2.9 BUNNY + 12.0 QBT + 0.1 polyBUNNY**
16-Nov-21 = 2.9 BUNNY + 11.8 QBT + 0.1 polyBUNNY**
17-Nov-21 = 2.8 BUNNY + 11.7 QBT + 0.2 polyBUNNY**
18-Nov-21 = 2.8 BUNNY + 11.5 QBT + 0.2 polyBUNNY**
19-Nov-21 = 2.8 BUNNY + 11.4 QBT + 0.3 polyBUNNY**
20-Nov-21 = 2.7 BUNNY + 11.2 QBT + 0.3 polyBUNNY**
21-Nov-21 = 2.7 BUNNY + 11.1 QBT + 0.4 polyBUNNY**

** I assume that 1M polyBUNNY will be added to the MND vault on 15 Nov 2021. Due to the 30-days-amortization reward distribution, the reward rate will steadily climb up from 0 to reach its farming rate in 3 months approximately. After 3 months, we should expect the reward rate to reach its farming rate which will be around 0.0016 polyBUNNY/MND/day or 1.6 polyBUNNY per 1,000 MND per day. Hopefully, the team will kindly contribute some accumulated polyBUNNY rewards (the team contributed 490,253 QBT as the starting point for all of us on 24 Sept) so we won’t need to wait for 3 months long.

Thoughts

Team Bunny Roadmap : 2021 Q4

According to the Team Bunny Roadmap in 2021 Q4 :

  1. It seems like the team already marked the Qubit Network Expansion working item in “2021 Q4” lane as “Done” after Klaytn expansion being announced. So, I’m not sure we will see more network expansions on Polygon (or other) before the end of this year or not.
  2. According to the MND Vault introduction article, it mentioned that an optimal share of fees from the fee-based product such as “In Chain Multiplexers” will be distributed to the MND vault. So, since the In-chain Multiplexer is in “Work-in-Progress” status in the “2021 Q4” lane. So, the MND vault investors may expect the optimal share of In-chain multiplexer fees as an additional income stream before the end of 31-Dec-2021.
MND Vault : Introduction 2.1

3. As the “Bunny Game Tab” feature in the“2021 Q4” lane is in “Work-in-Progress” status. We may expect more games coming in before the end of this year. The more interesting games, the more BUNNY will be staked instead of being sold :)

///////////////////////////////////////////////////////////////

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

My MND Articles

A Software engineer who loves reading and sharing any interesting and useful things