Mound (MND) Update as-of 28-Aug-2021
Hello Mound Fam,
For this week, there are so many news related to the Mound ecosystem.
So, I will try to highlight the most important things for our family.
Highlights this week
- QBT Launched on time and has already reached 400 Millions USD TVL within 4 days (Est. +100 millions per day!) -> Link
- The principal + rewards of polyBUNNY tokens (in polyBUNNY maxi pool) held by the Dev team = 840,284 + 275,939 = 1,116,223 tokens-> Link
- The Bunny Maxi Pool Rewards will be maintained to be at least 50% APY even the FRE mechanism still keep buying back BUNNY -> Link
- PancakeBunny and Qubit Begin Joint Mining with MDEX.com for weeks -> Link
- MND Vault details will be shared in early next week (Before 1 Sept?) and may launch a little earlier than 10 Sept -> Link
Mound TVL & Status
As-of 28 August 2021 10:33 UTC, the Mound Vault numbers are as follows:
TVL (Total Value Locked) = 78.929 Million USD
BUNNY tokens = 3.504 Million tokens
QBT tokens = 100 Million tokens
Effective value of MND token (TVL / MND tokens) = 29.04 USD
Accumulated rewards = 503,920 BUNNY or 0.1854 BUNNY per MND token
(1) When will 1 million polyBUNNY tokens be added to the Mound Vault?
Again, I still believe that the team will add 1 million polyBUNNY tokens to the Mound Vault at the launch date. Plus, on the first claim date, we will get around 0–0.066 polyBUNNY per MND.
(2) When/How will 100M Qubit tokens (in the Mound Vault) being farmed?
The QBT Vault launch date has been delayed and is now being audited. To be safe, we may think that this QBT vault launch date “could” be on the same date as Mound Vault launch date (10 Sept or a little earlier than that). That means the 100 million QBT tokens farming schedule will be around 10 Sept.
(3) APR of the QBT tokens in the Mound Vault?
For this week, as I’ve already had more information regarding QBT vault, I will try to predict the QBT Vault APR again.
3.1 As Qubit Platform TVL already reached 400 millions USD and keep increasing 100 millions USD per day. While, the PancakeBunny SAV TVL is just around 50 millions USD. So, once the team migrate the SAV assets from Venus to Qubit, we should have at least 450 millions USD and the % of PancakeBunny SAV lending amounts in Qubit will be around 10% (50/450) compared to overall lending/borrowing amounts in Qubit Platform.
3.2 According to QBT Reward Distribution in Gitbook,
For the first month (Sept 2021), the 30,000,000 QBT rewards will be distributed meaning that 1,000,000 QBT rewards per day.
Plus, since 77% of the rewards or 770,000 QBT will be distributed to the BTC/ETH/BNB/USDT/BUSD/QBT pools in daily basis (See 3.1 and you will notice these are the same pools as what we have in PancakeBunny SAV Pools).
3.3 As the 100 million QBT in the MND Vault will be locked to boost rewards for PancakeBunny SAV while the current QBT token supplies are less than 200 million tokens for now. So, the qScore for the MND Vault will be ≥ 10% (100 / 200 = 50%) for this and upcoming months.
From 3.1, you may notice that the PancakeBunny SAV Pool TVL equals to only 10% compared to overall Qubit TVL.
According to Qubit Boost example in GitBook, the example shows that if we supply 10% USDT and our qScore is 10%, we can boost up to 2.5X QBT rewards.
So, with this same assumption, the PancakeBunny SAV will supply 10% Assets compared to overall Assets in Qubit Platform and its qScore ≥ 10%. So, these SAVs should boost QBT “bonus” rewards up to 2.5X.
3.4 According to the latest BUNNY QBT Vault source code on github, it seems to me like “only 10%” of the QBT Bonus Rewards (calculated from qScore) from PancakeBunny SAVs (Single Asset Vaults) will be distributed to QBT Vault.
- qScore? -> Read qScore in Qubit gitbook
- How does Mound Vault relate to QBT Bonus Rewards? -> Read my Mound Vault Mechanism article
In summary, with these numbers, I will try to predict the QBT Vault APR again:
- Rewards for BNB/BTC/ETH/USDT/BUSD pools on Qubit Platform= 770,000 QBT per day
- PancakeBunny SAV Lending Amounts = 10% of Qubit Platform
- The QBT Rewards belong to PancakeBunny SAV will be boosted to 2.5X (Basic + Bonus = 1 + 1.5)
- % Portion of the QBT Bonus rewards generated by PancakeBunny SAV will be distributed to QBT Vault = 10%
PancakeBunny SAV’s QBT Rewards/day = 770,000 x 10% x 2.5x = 192,500
PancakeBunny SAV’s QBT Bonus/day = 192,500 x 1.5 / 2.5 = 115,500
QBT Vault’s QBT Bonus/day = 115,500 x 10% = 11,550 QBT per day
Since QBT Vault will lock 100,000,000 QBT (from Mound Vault).
QBT Vault %APR per day = 11,550 / 100,000,000 = 0.01155%
QBT Vault %APR per year = 0.01155% x 365 = 4.215%
So, last week, I predicted the QBT Vault rewards = 70% APR.
However, according to new factors that I mentioned in 3.1–3.4, it seems like the QBT Vault APR will dramatically dropped from 70% to 4.215%.
Again, please keep in mind that it could be higher or lower than this. It’s just my prediction!!!
IMPORTANT : The latest source code of the QBT Vault in Github may not be the final version and the % portion can be adjusted from 0.1 to any number. So, this APR prediction can be easily changed based on that ratio.
(4) Mound Valuation
As-of 28th August 2021 10:33 UTC, the asset in Mound Vault are as follows:
- BUNNY = 3,503,920 tokens @ 8.61 USD : 69% APR
Note: The Bunny Maxi APR was dropped to 69% due to the fact that the reward in the pool was rebooted on 19 Aug. And the FRE mechanism is now using all performance fees to stabilize the BUNNY price by buying back BUNNY from the market instead of minting BUNNY as rewards to the pools. So, since 19 Aug until now, the Bunny Maxi pool hasn’t got the performance fees to boost its APR. However, you may notice that the FRE cannot win the selling pressure right now. That’s why the BUNNY Price is still dropping even we have been diligently buying our BUNNY back from the market.
Need to understand BUNNY FRE -> Read my FRE article here
- polyBUNNY =1,116,223 tokens @ 3.55 USD : 199% APR
- QBT = 100,000,000 tokens @ 0.4895 USD : 0% APR
the MND vault’s asset values = (3,503,920 x 8.61) + (1,116,223 x 3.55) + (100,000,000 x 0.4895) = 83.08 millions USD
MND NAV per token = 83.08 / 2.717 = 30.57 USD
And for every 1 MND token holding, it equals to hold 3 tokens as follows:
- 1.2893 BUNNY
- 0.4107 polyBUNNY
- 36.797 QBT
The current daily rewards in Mound Vault will include:
BUNNY daily rewards = (3,503,920 x 8.61) x(69% / 365 days) = 57,031.34 USD
Note : this is around 6,623 BUNNY tokens per day
polyBUNNY daily rewards = (1,116,223 x 3.55) x (199% / 365 days) = 21,604.27 USD
Note : this is around 6,085 polyBUNNY tokens per day
Total daily rewards = 57,031.34 + 21,604.27 = 78,635.60 USD
Daily rewards per MND token = 78,635.60 / 2,717,604 = 0.0289 USD
So, the current %APR for MND vault
= 0.0289 / 30.57 USD per day
= 0.0945 % APR per day
= 34.49 % APR per year
However, once QBT SAV launch (possibly delayed to 7-10 Sept), the 100 million QBT tokens will begin farming. So, the daily rewards after 7–10 Sept will look like below.
QBT daily rewards = (100,000,000 x 0.4895) x(4.215% / 365 days) = 5,652.72 USD
Note : this is around 11,550 QBT tokens per day
Daily rewards after 10 Sept per MND token = (78,635.60 + 5,652.72) / 2,717,604 = 0.0310 USD
So, the %APR after MND vault launch
= 0.0310 / 30.57 USD per day
= 0.1014 % APR per day
= 37.01% APR per year
(5) Claiming Reward Distribution (1st time)
From my previous update, per MND token, we should get:
- 600,000 / 2,717,604 = 0.220 BUNNY
- 180,000 / 2,717,604 = 0.066 polyBUNNY
- 3,000,000 / 2,717,604 = 1.103 QBT
However, again, since there are four new factors that really impact this info as follows:
- Bunny Maxi APR dropped to 69% and could keep dropping to 40.57% APR (= 50% APY)
- QBT Vault launch date will be delayed
- QBT Vault APR prediction dropped from 70% APR to 4.215% APR
- Mound Vault launch date could be a little earlier than 10 Sept (7–9 Sept?)
With these new factors, I will assume that we may get less BUNNY rewards and may not get any QBT rewards before MND vault launch.
So, I will adjust the first claim reward prediction as follows:
- 550,000 BUNNY (Dropped from my last estimation which is around 600,000 BUNNY)
- 180,000 polyBUNNY (Same prediction)
- 0 QBT
Per MND token, we will get:
- 550,000 / 2,717,604 = 0.2023 BUNNY
- 180,000 / 2,717,604 = 0.066 polyBUNNY
- 0 / 2,717,604 = 0 QBT
If you finish reading this article, you may notice that the QBT Vault APR prediction was dropped from 70% to 4%.
Is this really bad to Mound?
I would say NO!!!!
Even the QBT Vault will get only 10% of the QBT Bonus rewards from PancakeBunny SAV Vaults, that should be GREAT as well.
Because the 90% of the QBT Bonus rewards will be distributed to the PancakeBunny SAV investors!!!
Yes, because the PancakeBunny SAV APR will be much higher than before.
Imagine that the APY for these vaults are boosted to 10X.
What will happen to the TVL?
10X TVL possibly, Right?
So, we may finally boost these SAVs TVL from 50M to 500M easily.
Imagine the 30% Performance fee we will get from 500M TVL. We should be able to use those 10X fees to buy back our BUNNY to win the FRE Threshold level (BNB / BUNNY = 40 : 1) much easier.
From investor perspective, not only the higher performance fee but also the BUNNY sentiment will look much better when the investor realize the BUNNY TVL growth. The BUNNY selling pressure will eventually lose the FRE buying pressure.
If BUNNY Price wins the FRE ratio, the BUNNY Maxi Pool will start collecting the performance fee and its APR will keep increasing. So, the MND vault should keep getting higher APR every day.
Do you see the healthy cycle here?
I see :)
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 to our family.
[Mound Related Articles written by the Mound team]
[My MND Articles]
[Mound (MND) in short]
- 2,717,604 tokens fixed supply (All of them have already been minted)
- It will basically hold 3,000,000 BUNNY tokens / 1,000,000 polyBUNNY tokens / 100,000,000 QBT tokens in the vault
- The MND token holders can claim their 1st rewards from the vault first time on 10th September or earlier (could be around 0.2023 BUNNY, 0.066 polyBUNNY per MND token)
- On 10th September 2021, “all” tokens in the Mound vault will being farmed to generate yield for MND token holders
- After the 1st claim, the holders can claim their daily rewards (Around 37.01% APR)
- In the future (2+ months), the Mound team could add some new project’s token and the fees to the Mound Vault. That means more rewards for the MND token holder in the far future
- In 2 years from now, they “could” have a vote to redeem the tokens from the vault (eg. BUNNY, polyBUNNY, etc.) and return them back to the MND token holder