Mound (MND) Update as-of 17-Oct-2021

Hello Mound Fam,

Since we may not have new highlights every week. So, to eliminate the redundancy, I will try to reformat my article structure a little bit this week.

Enjoy reading :)

MND Status as-of 17 Oct 2021

TVL (Total Value Locked) = 19.712 Million USD
BUNNY tokens = 3 Million tokens
QBT tokens = 100 Million tokens
Total MND Staked = 2.217 Million tokens (81.58% of total supplies)

Effective value of MND token (TVL / MND tokens) = 7.25 USD
Current Market Price = 6.18 USD

Pay BUNNY Rewards = 0.0042 BUNNY/MND
Pay QBT Rewards = 0.0136 QBT/MND
MND APR vs Market Price = 113.12%

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 17th Oct 2021 01:45 UTC

PCB/QBT/polyBunny Status as-of 17 Oct 2021

  • PCB SAV TVL = 233M USD / Qubit TVL = 719M USD
  • The ratio of PCB SAV TVL / Qubit TVL = 32.30%
  • QBT Supply = 42.096M Tokens / Qubit locked = 31.503M Tokens
  • The ratio of bQBT / All Locked QBT = 77.73%
  • The principal of polyBUNNY tokens held by the Dev team = 949,962.687 + 14,307.725 + 8,962.923 + 5.395 = 973,238.73 tokens
  • Estimated polyBUNNY tokens minted to Dev Wallet = 2,000 tokens per day
  • Days Left to reach 1M polyBUNNY on principal side = 13.38 days (Around 31 Oct 2021)
Dev Wallet : polyBunny Principals

MND Valuation as-of 17 Oct 2021

The underlying asset in the Mound Vault are as follows:

  • BUNNY = 3,000,000 tokens @ 4.35USD : 58% 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 @ 1.75 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 @ 0.062 USD : 12.25% APR
    Note: After monitoring the results, we’ve kept getting better and better QBT reward rate from 0.0099 QBT/MND last week to 0.0136 QBT/MND today (17 Oct 2021). Since there is the 50% boost rewards, we will keep getting much better rate next week(Could be around 0.0168 QBT/MND on 26 Oct). However, after 26 Oct, my latest model indicates that the reward rate should steadily decline to around 0.0150 QBT/MND/day or 12.25% APR.

the MND vault’s asset values = (3,000,000 x 4.35) + (100,000,000 x 0.062) = 19.25 millions USD

So far, there are only 2.218 Million MND tokens staked in the Mound Vault and around 6,240 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/WBNB Liquidity on PancakeSwap

MND averaged tokens = 0.5 x [2.717 (Total Supply) + 2.218 (MND staked) + 0.006 (MND Liquidity) ] = 2.4705

MND NAV per token = 19.25 / 2.4705 = 7.7919 USD

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

  • 3 / 2.4705 = 1.214 BUNNY
  • 0 / 2.4705 = 0 polyBUNNY
  • 100 / 2.4705 = 40.477 QBT

The current daily rewards in Mound Vault will include:

BUNNY daily rewards = (3,000,000 x 4.35) x (58% / 365 days) = 20,736 USD
Note : this is around 4,767 BUNNY tokens per day

QBT daily rewards = (100,000,000 x 0.062) x(12.25% / 365 days) = 2,080.82 USD
Note : this is around 33,561 QBT tokens per day

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

Daily rewards per MND token = (20,736 + 2,080.82) / 2,470,500 = 0.00923 USD

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

= 0.00923 / 7.7919 USD per day

= 0.1185 % APR per day

= 43.25% 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.

MND Vault Reward Prediction next week

Using the 30-days-amortization reward distribution method, we can then predict the reward per MND during 18–26 Oct 2021 as shown in the table below.

30-Days-Amortization reward rate prediction on 17–26 Oct 2021

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

18-Oct-21 = 4.1 BUNNY + 14.0 QBT
19-Oct-21 = 4.1 BUNNY + 14.4 QBT
20-Oct-21 = 4.0 BUNNY + 14.8 QBT
21-Oct-21 = 3.9 BUNNY + 15.1 QBT
22-Oct-21 = 3.9 BUNNY + 15.5 QBT
23-Oct-21 = 3.8 BUNNY + 15.8 QBT
24-Oct-21 = 3.8 BUNNY + 16.1 QBT
25-Oct-21 = 3.7 BUNNY + 16.5 QBT
26-Oct-21 = 3.6 BUNNY + 16.8 QBT

Note : I counted the 50% boosted rewards during 5–26 Oct 2021 in my prediction

Thoughts

It seems like the 50% QBT reward boost event can no longer increase the TVL of either Qubit or PancakeBunny to 1 Billion USD.

DefiStation : PCB TVL
QBT.FI : Qubit TVL

However, according to the latest “Team Bunny Roadmap”, I saw top 3 priority projects are Network Expansion, Bunny Game Tab and In-Chain Multiplexer.

Team Bunny Roadmap

And here are my thoughts:

  • Network Expansion
    According to the latest Qubit tweet related to the airdrop campaigns with Klaytn. So, we may expect the first Qubit expansion to Klaytn network by the end of October 2021. And, yeah, we may expect some cross-chain borrowing power from Klaytn which could positively increase the Supply APR on Qubit platform.
    IMPORTANT : This is just my assumption. So, it could totally go wrong.
Qubit : Airdrop campaigns with Klaytn
  • Bunny Game Tab
    As previous version of the roadmap mentioned about “Bunny Burrow” project which I’m guessing it could be a game. However, with this new generalized keyword “Game Tab”, I’m guessing the team might develop many games in a “tab” in this quarter.
  • In-Chain Multiplexer
    If we refer to the knowledge of how ETH->BSC Multiplexer works in the “Bunny Cross-chain Farming Development” article, it seems to me like the team is now working on creating the mechanism on PancakeBunny platform to allow the investors to post their BSC LP (such as Pancakeswap BUSD/BNB LP) as collateral and receive the borrowing power from Qubit to increase their returns. Hopefully, my assumption is correct.
    IMPORTANT : This is just my assumption. So, it could totally go wrong.
Bunny Cross-Chain Mechanism

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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

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Tanate Sukonrattanamaetee

Tanate Sukonrattanamaetee

187 Followers

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