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

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

Mound Stats & APY Estimation as-of 2021–08–28 10:33 UTC

Insights

(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.

QBT Vault under audit

(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.

PancakeBunny SAV TVL (50M) vs Qubit Platform TVL (400M)

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).

QBT Rewards : Gitbook

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.

QBT Boost Example : Gitbook

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.

Github : QBT Vault Reward Formula

In summary, with these numbers, I will try to predict the QBT Vault APR again:

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.

QBT Vault Source code on Github

(4) Mound Valuation

As-of 28th August 2021 10:33 UTC, the asset in Mound Vault are as follows:

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:

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:

However, again, since there are four new factors that really impact this info as follows:

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:

Per MND token, we will get:

(6) Summary

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.

WHY’S THAT??????

Because the 90% of the QBT Bonus rewards will be distributed to the PancakeBunny SAV investors!!!

GOOD?????

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.

Current %APY of PancakeBunny SAV

THEN WHAT????

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.

THEN WHAT????

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.

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

[Mound (MND) in short]

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Tanate Sukonrattanamaetee

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