Mound (MND) Update as-of 21-Nov-2021

Hello Mound Fam,

Good news!!!
The 1M polyBUNNY tokens have already been farming for the MND vault since 16th November 2021 UTC. As-of today (21th November 06:00 UTC), the accumulated rewards are 11,656 + 8,706 = 20,362 tokens.

So, on 16th Dec 2021, the MND vault will distribute the polyBUNNY rewards around…
125,000 tokens per 2,250,000 MND per month
0.055 polyBUNNY per 1 MND per month
55 polyBUNNY per 1,000 MND per month

1M polyBUNNY in MND Vault

News

  • 1 million polyBUNNY started farming for MND vault on Nov 16 2021 UTC -> Link
  • Qubit Major Update (Cross-Chain Collateral, Leveraged Liquidity Provider, Supply & Borrow Bunny) -> Link
  • Busy Bunnies on cantata.io will buy back and burn BUNNY!!! -> Link
  • Qubit on BSC Defi Expo -> Link

MND Status as-of 21-Nov-2021

TVL (Total Value Locked) = 14.243 Million USD
BUNNY tokens = 3 Million tokens
QBT tokens = 100 Million tokens
polyBUNNY tokens = 1 Million tokens
Total MND Staked = 2.241 Million tokens (82.46% of total supplies)

Effective value of MND token (TVL / MND tokens) = 5.24 USD
Current Market Price = 2.82 USD

Pay BUNNY Rewards = 0.0027 BUNNY/MND/day
Pay QBT Rewards = 0.0111 QBT/MND/day
Pay polyBUNNY Rewards = 0.055 polyBUNNY/MND/month*

Mound Stats as-of 21th Nov 2021 06:30 UTC

MND/WBNB PCS Liquidity Pool Statistics:

  • MND tokens = 12,460 MND
  • WBNB tokens = 59.03 WBNB
  • APR% = 145.48%
MND/WBNB PCS Liquidity Pool

PCB/QBT Status as-of 21 Nov 2021

  • Accumulated treasury amounts from Prediction Market increased from 4.1688 BNB last week (14 Nov 2021) to 4.7215 BNB today (21 Nov 2021).
Prediction Market Treasury Amount
PCB vs Qubit Stats as-of 21Nov 2021

MND Valuation as-of 21 Nov 2021

The underlying assets in the Mound Vault are as follows:

  • BUNNY = 3,000,000 tokens @ 2.91 USD : 57% 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
  • QBT = 100,000,000 tokens @ 0.039 USD : 5.28% APR
    Note: After monitoring the results, the QBT reward rate has been declined from 0.0122 QBT/MND (14 Nov 2021) to 0.0111 QBT/MND (21 Nov 2021) and my model indicates that the reward rate could keep being declined to 0.0065 QBT/MND or 5.28% APR.
  • polyBUNNY = 1,000,000 tokens @ 0.879 USD : 146% 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.

the MND vault’s asset values = (3,000,000 x 2.91) + (100,000,000 x 0.039) + (1,000,000 x 0.879) = 13.509 millions USD

So far, there are only 2.241 Million MND tokens staked in the Mound Vault and around 12,460 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) + 0.012 (MND Liquidity) ] = 2.485

MND NAV per token = 13.509 / 2.485 = 5.4362 USD

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

  • 3 / 2.485 = 1.2079 BUNNY
  • 100 / 2.485 = 40.2414 QBT
  • 1 / 2.485 = 0.4024 polyBUNNY

The current daily rewards in Mound Vault will include:

BUNNY daily rewards = (3,000,000 x 2.91) x (57% / 365 days) = 13,633 USD
= 4,684 BUNNY tokens per day
= 0.00188 BUNNY/MND/day
= 1.88 BUNNY per 1,000 MND per day

QBT daily rewards = (100,000,000 x 0.039) x(5.28% / 365 days) = 564 USD
= 14,465 QBT tokens per day
= 0.00582 QBT/MND/day
= 5.82 QBT per 1,000 MND per day

polyBUNNY daily rewards = (1,000,000 x 0.879) x (146% / 365 days) = 3,516 USD
= 4,000 polyBUNNY tokens per day
= 0.00161 polyBUNNY/MND/day
= 1.61 polyBUNNY per 1,000 MND per day
= 48.3 polyBUNNY per 1,000 MND per month

Daily rewards per MND token = (13,633 + 564 + 3,516) / 2,485,000 = 0.00712 USD

APR vs MND effective value = (0.00712 x 365 days) / 5.4362 = 47.85%
APR vs MND market price
= (0.00712 x 365 days) / 2.82 = 92.15%

MND Vault Reward Prediction next week

Using the 30-days-amortization reward distribution method, we can then predict the reward per MND during 22–27 Nov 2021 as shown in the table below.

30-Days-Amortization reward rate prediction on 22–27 Nov 2021

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

22-Nov-21 = 2.7 BUNNY + 11.0 QBT
23-Nov-21 = 2.7 BUNNY + 10.8 QBT
24-Nov-21 = 2.7 BUNNY + 10.7 QBT
25-Nov-21 = 2.6 BUNNY + 10.6 QBT
26-Nov-21 = 2.6 BUNNY + 10.5 QBT
27-Nov-21 = 2.6 BUNNY + 10.5 QBT

16-Dec-21 = 2.3 BUNNY + 9.8 QBT + 56.4 polyBUNNY**

** According to the PolyBunny Farming & Reward Distribution Mechanism mentioned in the team’s article, the polyBUNNY rewards will be distributed around 16-Dec-21.

Mound Vault PolyBunny Farming & Reward Distribution Mechanism

Thoughts

According to the latest Qubit Article,
1) X-Collateral : If its security is fully proved/audited and the feature is aggressively advertised, hopefully, we should start seeing much more ETH TVL growth on the Qubit platform as more and more ETH investors will begin posting their ETH as collateral.

Qubit : X-Collateral

2) xLP : According to the figure below, it seems to me like the Qubit will allow borrowing 1–3X of asset B. I’m guessing the platform will allow borrowing 3x of stable coin assets just like the Alpaca finance leveraged yield farming concept. So, we may see our Qubit TVL growth mainly on USDT/BUSD/USDC.

Qubit : XLP
Alpaca Finance : Stable Coin USDT-BUSD LP 3x Leveraged Yield Farming

3) Bunny on Qubit : As the QBT collateral ratio is around 25%, I’m guessing the BUNNY collateral ratio should be ≤25%. Honestly, as we can see the BUNNY price movement is clearly in downtrend, we may see many investors to “borrow” and “short” the BUNNY. So, if the borrowing demands are high enough, the BUNNY deposit interest rate + QBT rewards might be greater than the Bunny Maxi Pool APR.

Bunny on Qubit

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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

Mound Related Articles written by the Mound team

My MND Articles

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Tanate Sukonrattanamaetee

Tanate Sukonrattanamaetee

187 Followers

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