Mound (MND) Update as-of 18-Sep-2021
Hello Mound Fam,
I’ve seen a good sign of our Mound ecosystem. The Qubit SAVs (Single-Asset Vaults) have been launched on PancakeBunny platform and their TVL as-of 18 Sept 2021 12:00 UTC already climbed up from 40M to 100M USD!!!
Plus, it seems the 8.33M QBT tokens in the MND vault could be farmed somewhere (directly deposit QBT on Qubit platform, bQBT or bQBT/BNB LP) by this week.
Highlights this week
- PancakeBunny’s Qubit SAV has been launched with very high APY and already reached 100M USD TVL as-of 18 Sept 2021 12:00 UTC -> Link
Note : Read more about Qubit SAV here - The principal + rewards of polyBUNNY tokens (in polyBUNNY maxi pool) held by the Dev team = 894,662 + 412,614 = 1,307,276 tokens. Plus, additional “35,380” polyBUNNY sitting in the wallet without farming -> Link
- Burned 11,281.787 BUNNY got from the BUNNY pots -> Link
- The new product, BUNNY Prediction Market has already been launched on 14 Sept 2021. So, we will have more BUNNY burning soon -> Link
Mound Vault TVL & Status
As-of 18th September 2021 12:30 UTC, the Mound Vault numbers are as follows:
TVL (Total Value Locked) = 32.397 Million USD
BUNNY tokens = 3 Million tokens
QBT tokens = 100 Million tokens
Total MND Staked = 2.118 Million tokens (Around 78% of total supplies)
Effective value of MND token (TVL / MND tokens) = 11.92 USD
Current Market Price = 8.30 USD
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 last week
Insights
(1) When will 1 million polyBUNNY tokens be added to the Mound Vault?
According to my update last week, it will take months before 1M polyBUNNY tokens will be minted to Dev wallet.
(2) When/How will 100M Qubit tokens (in the Mound Vault) being farmed?
According to the Mound Bulletin since 11 Sept 2021, the QBT Vault has been audited and will be launched before 26 Sept (Could be around 24 Sept).
(3) APR of the QBT tokens in the Mound Vault?
Since the bQBT, bQBT/BNB LP pool have already been launched and their APR looks quite high.
So, we can expect the 8.3M QBT to be farmed in one of the following pools:
- bQBT Vault (TVL 2.144M USD / 12M bQBT / 55.06% APR)
- bQBT/BNB LP pool (TVL 0.574M USD / 1.6M bQBT / 397.56% APR)
- Deposit QBT (TVL 5.47M / 30.7M QBT/ 26.92% APY +52.25% APR)
As-of 18 Sept 2021 13:00 UTC, total qScore on Qubit Platform =19.623M
The QBT being locked in PCB (in form of bQBT) = 13.6M
So, qScore belong to PCB = 13.6M
That means the PCB qScore = 13.6M / 19.623M = approx. 70% compared to total qScore on Qubit Platform.
So, with the 70% qScore belongs to bQBT, the PCB’s QBT SAV TVL will still get max 2.5X QBT Boost rewards even the PCB’s QBT SAV TVL size reached 70% of Qubit Platform which should be around 1,617M USD.
Note: As-of 18 Sept 2021 12:30 UTC, the PCB’s QBT SAV TVL = 107M USD
However, I saw the MND Vault still hold 100M QBT tokens. That means 8.33M QBT tokens have not been converted to bQBT yet.
Note : The Dev team already converted their QBT to bQBT to boost the rewards since SAV launch.
In summary, I believe we’ve already had large enough bQBT to boost the rewards on PCB’s QBT SAV. So, our 8.33M QBT won’t be required to be converted to bQBT to boost the rewards in this short term period (at least, for this month).
So, I believe the 8.33M QBT will be farmed by deposit to QBT Deposit market directly and may not be converted to bQBT. and the APR we may expect from the QBT Deposit market will be around 26.92% APY +52.25% APR or less than that since the TVL in this pool will be increased from 30.7M QBT to 39M QBT.
I’m guessing it could be around 60% APR then.
BUT, we will add only 8.33M QBT tokens to the farm, so we will need to calculate the APR based on the 100M QBT tokens we have had in MND Vault.
So, the daily rewards will be (8,333,333 x 60%)/365 = 13,698 QBT/day
The APR based on the 100M QBT
= 13,698 QBT / 100M QBT = 0.0136% per day
0.0136% per day x 365 days = 5% per year
(4) Mound Valuation & Daily Reward generation
As-of 18th September 2021 12:30 UTC, the asset in Mound Vault are as follows:
- BUNNY = 3,000,000 tokens @ 4.63 USD : 71% 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 @ 1.84 USD : 221% APR
- QBT = 100,000,000 tokens @ 0.18 USD : 0% APR
the MND vault’s asset values = (3,000,000 x 4.63) + (100,000,000 x 0.18) = 31.89 millions USD
So far, there are only 2.118 Million MND tokens staked in the Mound Vault and around 10,000 MND tokens in form of MND/WBNB LP. So we may begin to assume that the remaining MND tokens won’t be staked forever.
But, to be conservative, I will treat just some of them as permanently unstaked tokens.
So, from now on, I will calculate the NAV and token holdings per MND using the average between MND total supply and MND staked in the vault.
MND averaged tokens = 0.5 x [2.717 (Total Supply) + 2.118 (MND staked)] = 2.4175
MND NAV per token = 31.89 / 2.4175 = 13.191 USD
And for every 1 MND token holding, it equals to hold 3 tokens as follows:
- 3 / 2.4175 = 1.241 BUNNY
- 0 / 2.4175 = 0 polyBUNNY
- 100 / 2.4175 = 41.365 QBT
The current daily rewards in Mound Vault will include:
BUNNY daily rewards = (3,000,000 x 4.63) x (71% / 365 days) = 27,019 USD
Note : this is around 5,835 BUNNY tokens per day
polyBUNNY daily rewards = 0 USD
Note : this is around 0 polyBUNNY tokens per day
Daily rewards per MND token = 27,019 / 2,417,500 = 0.0111 USD
Once 8.33M QBT begin farming (after 26 Sept), the daily rewards after 26 Sept will look like below.
QBT daily rewards = (100,000,000 x 0.18) x(5% / 365 days) = 2,465.75 USD
Note : this is around 13,698 QBT tokens per day
Daily rewards after 26 Sept per MND token = (27,019 + 2,465.75) / 2,417,500 = 0.0122 USD
So, the %APR of MND Vault after 26 Sept could be as follows:
= 0.0122 / 13.191 USD per day
= 0.0925 % APR per day
= 33.76% APR per year
Note :
- This number is the daily reward actually generated by Mound vault not counting the 75-days-accumulated BUNNY rewards from previous months
- You may notice that the APR on the Mound website showing 120% APR but please keep in mind that the rewards distributed this month includes both the 75-days-accumulated BUNNY rewards and the actual daily reward.
(5) MND Vault Reward Distribution Mechanism
After monitoring the MND reward distribution since 10 Sept 2021 06:00UTC until now (18 Sept 2021 12:30 UTC), I notice that
- On 10 Sept 2021, reward rate is 0.0096 BUNNY / MND per day
- On 11 Sept 2021, reward rate is 0.0093 BUNNY / MND per day
- On 12 Sept 2021, reward rate is 0.0091 BUNNY / MND per day
- On 13 Sept 2021, reward rate is 0.0089 BUNNY / MND per day
- On 14 Sept 2021, reward rate is 0.0086 BUNNY / MND per day
- On 15 Sept 2021, reward rate is 0.0084 BUNNY / MND per day
- On 16 Sept 2021, reward rate is 0.0082 BUNNY / MND per day
- On 17 Sept 2021, reward rate is 0.0079 BUNNY / MND per day
- On 18 Sept 2021, reward rate is 0.0077 BUNNY / MND per day
After 8 days passed, with this reward distribution characteristics, I’m almost 100% sure that it is the same reward distribution mechanism as BUNNY Maxi pool implementation which is 30-Days-Amortization.
Note: To better understand how 30-days-amortization looks like. Please read how the Bunny Maxi Reward Distribution mechanism works below or the 5th item in their article.
If we stick with the 30-days-amortization reward distribution method, we can then predict the reward per MND during 19–24 Sept as shown in the table below.
In simpler term, if we have 1,000 MND staked in the MND Vault, we should get around:
19-Sept-21 = 7.6 BUNNY (87.81% APR vs Effective value)
20-Sept-21 = 7.4 BUNNY (85.93% APR vs Effective value)
21-Sept-21 = 7.2 BUNNY (84.11% APR vs Effective value)
22-Sept-21 = 7.0 BUNNY (82.36% APR vs Effective value)
23-Sept-21 = 6.9 BUNNY (80.75% APR vs Effective value)
24-Sept-21 = 6.7 BUNNY (79.20% APR vs Effective value)
(6) Summary
You may notice that the PCB’s QBT SAV TVL growth is quite impressive. Before launch, we had only 40M USD TVL on SAV but now we’ve had more than 100M USD already!
With this TVL growth rate, I do believe in 1–2 weeks from now, the PCB’s QBT SAV TVL size will keep increasing to own 50% TVL on Qubit Platform which could be around 700M USD.
Since the current PCB TVL (all pools) is around 700M USD (as-of 18 Sept 2021 14:00 UTC), we can then predict our TVL to grow 2x to 1.5 Billion USD in upcoming weeks.
If our TVL keep growing with this pace, we can then expect large enough performance fee (30% of claiming rewards) to keep buying back BUNNY until we win the FRE threshold (40 BUNNY : 1 BNB ; Assume BNB price = 400 USD -> BUNNY price must be greater than 10 USD) in real soon!
///////////////////////////////////////////////////////////////
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]
https://tanatesukonrattanamaetee.medium.com/mound-related-articles-written-by-mound-team-3755e25cece
[My MND Articles]
https://tanatesukonrattanamaetee.medium.com/my-mound-articles-bc412aeb03ef