Mound (MND) Update as-of 28-Nov-2021

Tanate Sukonrattanamaetee
6 min readNov 28, 2021

Hello Mound Fam,

We have two GREAT news for Qubit and Bunny this week!!!

News

  • Qubit selected as one of the Top 10 Players MVBIII -> Link
  • In-Chain Multiplexer will be launched before 5th Dec 2021 -> Link

MND Status as-of 28-Nov-2021

TVL (Total Value Locked) = 12.617 Million USD
BUNNY tokens = 3 Million tokens
QBT tokens = 100 Million tokens
polyBUNNY tokens = 1 Million tokens
Total MND Staked = 2.243 Million tokens (82.53% of total supplies)

Effective value of MND token (TVL / MND tokens) = 4.64 USD
Current Market Price = 2.28 USD

Pay BUNNY Rewards = 0.0026 BUNNY/MND/day
Pay QBT Rewards = 0.0103 QBT/MND/day
Pay polyBUNNY Rewards = 0.0618 polyBUNNY/MND/month*

Mound Stats as-of 28th Nov 2021 13:20 UTC

MND/WBNB PCS Liquidity Pool Statistics:

  • MND tokens = 13,660 MND
  • WBNB tokens = 52.07 WBNB
  • APR% = 95.18%
MND/WBNB PCS Liquidity Pool

BUNNY/PolyBUNNY/QBT Status as-of 28 Nov 2021

PCB vs Qubit Stats as-of 28 Nov 2021
polyBUNNY in MND Vault

MND Valuation as-of 28 Nov 2021

The underlying assets in the Mound Vault are as follows:

  • BUNNY = 3,000,000 tokens @ 2.13 USD : 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
  • QBT = 100,000,000 tokens @ 0.041 USD : 5.28% APR
    Note: After monitoring the results, the QBT reward rate has been declined from 0.0111 QBT/MND (21 Nov 2021) to 0.0103 QBT/MND (28 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 @ 0.53 USD : 173% 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 2.13) + (100,000,000 x 0.041) + (1,000,000 x 0.53) = 11.02 millions USD

So far, there are only 2.243 Million MND tokens staked in the Mound Vault and less than 20,000 MND tokens in form of MND/WBNB LP. However, to be conservative, we will assume that there will eventually be around 2.3 Million MND staked to the vault.

MND NAV per token = 11.02 / 2.3 = 4.79 USD

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

  • 3 / 2.3 = 1.304 BUNNY
  • 100 / 2.3 = 43.478 QBT
  • 1 / 2.3 = 0.4347 polyBUNNY

The current daily rewards in Mound Vault will include:

BUNNY daily rewards = (3,000,000 x 2.13) x (58% / 365 days) = 10,153 USD
= 4,767 BUNNY tokens per day
= 0.00207 BUNNY/MND/day
= 2.07 BUNNY per 1,000 MND per day

QBT daily rewards = (100,000,000 x 0.041) x(5.28% / 365 days) = 593 USD
= 14,465 QBT tokens per day
= 0.00628 QBT/MND/day
= 6.28 QBT per 1,000 MND per day

polyBUNNY daily rewards = (1,000,000 x 0.53) x (173% / 365 days) = 2,512 USD
= 4,739 polyBUNNY tokens per day
= 0.00206 polyBUNNY/MND/day
= 2.06 polyBUNNY per 1,000 MND per day
= 61.8 polyBUNNY per 1,000 MND per month

Daily rewards per MND token = (10,153 + 593 + 2,512) / 2,300,000 = 0.00576 USD

APR vs MND effective value = (0.00576 x 365 days) / 4.79= 43.89%
APR vs MND market price
= (0.00576 x 365 days) / 2.28 = 92.21%

MND Vault Reward Prediction next week

Using the 30-days-amortization reward distribution method, we can then predict the reward per MND during 29 Nov — 5 Dec 2021 as shown in the table below.

30-Days-Amortization reward rate prediction on 29 Nov — 5 Dec 2021

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

29-Nov-21 = 2.6 BUNNY + 10.2 QBT
30-Nov-21 = 2.6 BUNNY + 10.2 QBT
01-Dec-21 = 2.5 BUNNY + 10.1 QBT
02-Dec-21 = 2.5 BUNNY + 10.1 QBT
03-Dec-21 = 2.5 BUNNY + 10.1 QBT
04-Dec-21 = 2.5 BUNNY + 10.0 QBT
05-Dec-21 = 2.5 BUNNY + 10.0 QBT

16-Dec-21 = 2.4 BUNNY + 9.7 QBT + 61.8 polyBUNNY**

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

Thoughts

For the next week, the most interesting thing is about the “BUNNY In-Chain Multiplexer” feature.

My assumption is that the PancakeBunny platform itself will open the new LP pools (Quite similar concept as their Qubit Single Asset Vaults) so it will post the LP as collateral and then borrow the assets to reinvest more LPs back to the pool.

If this is the case, I’m guessing there will be positive impacts to BUNNY, bQBT, QBT and MND as follows:

  • To bQBT : The more pools on PCB, the more deposit & borrowing powers, the more QBT rewards shared to bQBT & bQBT/BNB stakers
  • To BUNNY : It seems like the In-Chain Multiplexer could charge the protocol fees for buying back and burn the BUNNY tokens
  • To QBT : The more deposit & borrowing powers, the more TVL & protocol fees being generated
  • To MND : If the In-Chain Multiplexer charge the protocol fees, the MND vault should receive a portion of the fees as well (according to the MND Vault Introduction : Item 2.1)
MND Vault : Introduction 2.1

IMPORTANT : These are my assumptions that could be wrong. So, please wait for the official announcement of this feature.

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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

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Tanate Sukonrattanamaetee

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