Mound (MND) Update as-of 23-Oct-2021
Hello Mound Fam,
For this week, we have some good news on our PancakeBunny platform as follows:
- The PancakeBunny contracts have been completely audited by Theori
- The Prediction Market supports Mobile version
By October 26th, 2021, we will have another good news regarding Qubit Network Expansion to Klaytn. This should further boost the Qubit TVL & usages in upcoming months.
Let’s go back to our norm.
MND Status as-of 23 Oct 2021
TVL (Total Value Locked) = 20.698 Million USD
BUNNY tokens = 3 Million tokens
QBT tokens = 100 Million tokens
Total MND Staked = 2.219 Million tokens (81.65% of total supplies)
Effective value of MND token (TVL / MND tokens) = 7.62 USD
Current Market Price = 4.46 USD
Pay BUNNY Rewards = 0.0038 BUNNY/MND
Pay QBT Rewards = 0.0159 QBT/MND
MND APR vs Market Price = 126.20%
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
PCB/QBT/polyBunny Status as-of 23 Oct 2021
- Accumulated treasury amounts from Prediction Market = 1.9252 BNB
- PCB SAV TVL = 325M USD / Qubit TVL = 925M USD
- The ratio of PCB SAV TVL / Qubit TVL = 35%
- bQBT = 27.176M Tokens / total qScore = 34.548M scores
- The ratio of bQBT / total qScore= 78.66%
- QBT Supply = 58.489M tokens
- The principal of polyBUNNY tokens held by the Dev team = 961,798.851 + 14,877.452 + 9,117.506 + 5.605 = 985,799.414 tokens
- Estimated polyBUNNY tokens minted to Dev Wallet = 2,000 tokens per day
- Days Left to reach 1M polyBUNNY on principal side = 7.1 days (Around 31 Oct 2021)
MND Valuation as-of 23 Oct 2021
The underlying asset in the Mound Vault are as follows:
- BUNNY = 3,000,000 tokens @ 3.64USD : 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 @ 1.70 USD : 150% 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 @ 0.093 USD : 12.25% APR
Note: After monitoring the results, we’ve kept getting better and better QBT reward rate from 0.0136 QBT/MND last week to 0.0159 QBT/MND today (23 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 3.64) + (100,000,000 x 0.093) = 20.22 millions USD
So far, there are only 2.219 Million MND tokens staked in the Mound Vault and around 7,840 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) + 2.219 (MND staked) + 0.008 (MND Liquidity) ] = 2.472
MND NAV per token = 20.22 / 2.472 = 8.179 USD
And for every 1 MND token holding, it equals to hold 3 tokens as follows:
- 3 / 2.472 = 1.213 BUNNY
- 0 / 2.472 = 0 polyBUNNY
- 100 / 2.472 = 40.453 QBT
The current daily rewards in Mound Vault will include:
BUNNY daily rewards = (3,000,000 x 3.64) x (58% / 365 days) = 17,352 USD
Note : this is around 4,767 BUNNY tokens per day
QBT daily rewards = (100,000,000 x 0.093) x(12.25% / 365 days) = 3,121.23 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 = (17,352 + 3,121.23) / 2,472,000 = 0.00828 USD
So, the %APR of MND Vault could be as follows:
= 0.00828 / 8.179 USD per day
= 0.10125 % APR per day
= 36.95% 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 3.64) + (100,000,000 x 0.093) + (1,000,000 x 1.70) / 2.472 = 8.867 USD
And for every 1 MND token holding, it equals to hold 3 tokens as follows:
- 3 / 2.472 = 1.213 BUNNY
- 1 / 2.472 = 0.4045 polyBUNNY
- 100 / 2.472 = 40.453 QBT
polyBUNNY daily rewards = (1,000,000 x 1.70) x (150% / 365 days) = 6,986 USD
Note : this is around 4,109 polyBUNNY tokens per day
So, if we include polyBUNNY to the MND vault,
Daily rewards per MND token = (17,352 + 3,121.23 + 6,986) / 2,472,000 = 0.01110 USD
So, the %APR of MND Vault could be as follows:
= 0.01110 / 8.867 USD per day
= 0.12518 % APR per day
= 45.69% 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 MNV NAV (which is 8.867 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 24–31 Oct 2021 as shown in the table below.
In simpler term, if we have 1,000 MND staked in the MND Vault, we should get around:
24-Oct-21 = 3.8 BUNNY + 16.2 QBT
25-Oct-21 = 3.7 BUNNY + 16.5 QBT
26-Oct-21 = 3.7 BUNNY + 16.8 QBT
27-Oct-21 = 3.6 BUNNY + 16.7 QBT**
28-Oct-21 = 3.6 BUNNY + 16.5 QBT**
29-Oct-21 = 3.5 BUNNY + 16.4 QBT**
30-Oct-21 = 3.5 BUNNY + 16.3 QBT**
31-Oct-21 = 3.4 BUNNY + 16.2 QBT**
** The 50% boosted QBT reward event will end at 26 Oct 2021
Thoughts
The PCB TVL and Qubit TVL are increasing to 705M and 927.9M USD this week. Hopefully, the Qubit Network expansion to Klaytn will have enough network effect to boost Qubit TVL to 1 Billion USD again.
And it seems to me like if the QBT price recovery trend keep continuing for the upcoming weeks, it will create a very positive impact to overall Mound ecosystem causing the better APR for PCB SAV, bQBT pools and Qubit market itself. Plus, to increase the MND effective value. And, for sure, the TVL of PCB and Qubit will be increased.
Since the QBT price seems to clearly be one of the best catalyst to our Mound ecosystem growth.
So, in my opinion,
The more QBT utilities and news, the better QBT price
The better QBT price, the more juicy APR for all Mound platforms
The more juicy APR, the more TVL
The more TVL, the more protocol fees
The more protocol fees, the better returns for all Mound investors
But, again…
Hope for the best and prepare for the worst.
Enjoy your weekend!!!
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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