Mound (MND) Update as-of 25-Sep-2021
Hello Mound Fam,
Even we got some bad news during this week such as “China ban crypto” thing and the bearish market.
We have got some good news as well.
QBT BEGIN FARMING ON MND VAULT!!!!
TEAM CONTRIBUTED 490,253 QBT REWARDS TO MND VAULT!!!!
Let’s begin with our norm :)
Highlights this week
- The Mound Vault begins QBT farming and the team contributed 490,253 QBT rewards to the MND vault on 24 Sept 2021 08:00 UTC. Kudos to the team -> Link
- PancakeBunny’s Qubit SAV TVL as-of 25 Sept 2021 12:00 UTC reached 172.8M USD -> Link
Note : Read more about Qubit SAV here
- The principal + rewards of polyBUNNY tokens (in polyBUNNY maxi pool) held by the Dev team = 905,916 + 472,108 = 1,378,024 tokens. Plus, additional “25,380” polyBUNNY sitting in the wallet without farming -> Link
- Qubit X Alpaca Partnership -> Link
- Qubit AMA on Alpaca Telegram -> Link
Mound Vault TVL & Status
As-of 25th September 2021 12:20 UTC, the Mound Vault numbers are as follows:
TVL (Total Value Locked) = 19.324 Million USD
BUNNY tokens = 3 Million tokens
QBT tokens = 100 Million tokens
Total MND Staked = 2.168 Million tokens (Around 79.8% of total supplies)
Effective value of MND token (TVL / MND tokens) = 7.11 USD
Current Market Price = 6.16 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 on 12-Sept
(1) When will 1 million polyBUNNY tokens be added to the Mound Vault?
According to my update on 12-Sept-2021, it will take months before 1M polyBUNNY tokens will be minted to Dev wallet.
However, one good sign I saw on the Qubit x Alpaca AMA is that the Qubit team plan to launch the network expansion in October.
So, if the 1st network expansion means “Polygon” and if the team has plan to “cross-chain borrow” Polygon assets to farm on our PolyBUNNY platform, we may see some positive impact on polyBUNNY TVL, performance fee and minting rate soon.
But, again, this is my guess so I could be totally wrong. So, we should wait for the official announcement regarding their plan.
(2) APR of the QBT tokens in the Mound Vault?
According to the Dev’s model, the daily QBT rewards will be around 16,341.76 QBT/day or 5.96% APR based on 100M QBT
However, after monitoring the accumulated QBT rewards on MND vault for 29 hours, it seems like the accumulated QBT rewards increased from 490,253 to 527,290 tokens.
So, with this growth, it means we’ve got
527,290–490,253 = 37,037 tokens in 29 hours
37,037 x 24 / 29 = 30,651 tokens per day
APR per day= 30,651 / 100,000,000 = 0.0306% per day = 11.18% per year
Yep, we should get 5.96% but now it is temporarily 11.18%. This is great result but I will keep monitoring the reward rate and re-adjust the APR again in my update next week.
(3) Mound Valuation & Daily Reward generation
As-of 25th September 2021 12:20 UTC, the asset in Mound Vault are as follows:
- BUNNY = 3,000,000 tokens @ 3.27 USD : 69% 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 @ 1.35 USD : 209% APR
Note: The polyBUNNY maxi APR rate begins to decline, it seems to me like the polyBUNNY accumulated rewards in the pool will be empty soon. Since the FRE mechanism is now using 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 @ 0.09 USD : 5.96% APR
Note: I will use the rate from the Dev’s model to calculate the rewards for this week
the MND vault’s asset values = (3,000,000 x 3.27) + (100,000,000 x 0.09) = 18.81 millions USD
So far, there are only 2.168 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) + 2.168 (MND staked)] = 2.4425
MND NAV per token = 18.81 / 2.4425 = 7.70 USD
And for every 1 MND token holding, it equals to hold 3 tokens as follows:
- 3 / 2.4425 = 1.228 BUNNY
- 0 / 2.4425 = 0 polyBUNNY
- 100 / 2.4425 = 40.941 QBT
The current daily rewards in Mound Vault will include:
BUNNY daily rewards = (3,000,000 x 3.27) x (69% / 365 days) = 18,544 USD
Note : this is around 5,671 BUNNY tokens per day
QBT daily rewards = (100,000,000 x 0.09) x(5.96% / 365 days) = 1,469.59 USD
Note : this is around 16,328 QBT tokens per day
polyBUNNY daily rewards = 0 USD
Note : this is around 0 polyBUNNY tokens per day
Daily rewards per MND token = (18,544 + 1,469.59) / 2,442,500 = 0.0082 USD
So, the %APR of MND Vault could be as follows:
= 0.0082 / 7.70 USD per day
= 0.1065 % APR per day
= 38.87% APR per year
- 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 100++% 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.
(4) MND Vault Reward Prediction
Using the 30-days-amortization reward distribution method, we can then predict the reward per MND during 26 Sept — 1 Oct as shown in the table below.
In simpler term, if we have 1,000 MND staked in the MND Vault, we should get around:
26-Sep-21 = 6.4 BUNNY + 8.0 QBT
27-Sep-21 = 6.2 BUNNY + 8.2 QBT
28-Sep-21 = 6.1 BUNNY + 8.4 QBT
29-Sep-21 = 6.0 BUNNY + 8.5 QBT
30-Sep-21 = 5.8 BUNNY + 8.7 QBT
01-Oct-21 = 5.7 BUNNY + 8.9 QBT
You may notice that the PCB’s QBT SAV TVL growth is quite impressive even during the crypto market downturn. Before launch Qubit SAV, we had only 40M USD TVL, last week we had 100M USD TVL, and now we’ve had more than 170M USD or around 25% assets on Qubit platform!
Last week, I was too optimistic regarding SAV TVL growth rate.
With this market conditions, we should expect the TVL growth rate around 25% per week (more conservative rate :P ).
2 Oct Est. SAV TVL = 170 x 1.25 = 212.5M
9 Oct Est. SAV TVL =212.5 x 1.25 = 265.625M
16 Oct Est. SAV TVL =262.625 x 1.25 = 332M
24 Oct Est. SAV TVL =332 x 1.25 = 415M
31 Oct Est. SAV TVL =415 x 1.25 = 518.75M
So, to be honest, with this TVL & performance fee we will get from them, it is still difficult to win BUNNY selling pressure. So, we may need more convincing features on PCB platform so that the LP/SAV investors won’t keep selling their BUNNY claiming rewards.
I’ve seen so many idea such as:
- [Marketing] Bring back the BUNNY->WBNB pool that is the main selling point of PCB platform
- [Usability] Develop Prediction Market on Mobile
- [Marketing] Enhance BUNNY maxi pool so the investors can see & choose which token they need to get as their rewards (BTCB, ETH, BNB, CAKE, etc.) after clicking the claim button
- [Marketing] Adjust the FRE mechanism to buy back the BUNNY and burn them at the weekend instead of sending as the claiming rewards
Hopefully, the Mound team will at least consider these ideas and pick some of them to their development pipeline.
Lastly, I saw another good sign from the Qubit x Alpaca AMA that we may start having Qubit protocol fee sharing mechanism and Qubit DAO in approx. 2 months from now (around Nov-Dec 2021). So, in the other words, with the protocol fee, the Qubit locker should get higher rewards and Qubit platform will start buy back & burn QBT tokens before the end of this year!
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.
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