Mound (MND) Update as-of 31-Oct-2021

Hello Mound Fam,

For this week, we already got some good news related to Qubit platform as follows:

  • Expanded our Qubit service to Klaytn network and the supply TVL already reached 30M USD.
https://klaytn.qbt.fi/app
  • Increased QBT collateral price upper limit from $0.10 to $0.15
MND Vault : QBT Deposit Market

Wait and see for more interesting news in November!!!

MND Status as-of 31 Oct 2021

TVL (Total Value Locked) = 19.383 Million USD
BUNNY tokens = 3 Million tokens
QBT tokens = 100 Million tokens
Total MND Staked = 2.230 Million tokens (82.05% of total supplies)

Effective value of MND token (TVL / MND tokens) = 7.13 USD
Current Market Price = 4.18 USD

Pay BUNNY Rewards = 0.0034 BUNNY/MND
Pay QBT Rewards = 0.0144 QBT/MND
MND APR vs Market Price = 112.61%

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

Mound Stats as-of 31th Oct 2021 05:30 UTC

MND/WBNB PCS Liquidity Pool Statistics:

  • MND tokens = 8,430 MND
MND/WBNB PCS Liquidity Pool

PCB/QBT/polyBunny Status as-of 31 Oct 2021

  • Accumulated treasury amounts from Prediction Market increased from 1.9252 BNB (since 23 Oct 2021) to 3.1682 BNB today (31 Oct 2021)
Prediction Market Treasury Amount
PCB vs Qubit Stats as-of 31 Oct 2021
  • The PolyBunny Maxi pool’s principal held by the Dev team = 976,213 tokens
Dev Wallet : polyBunny Principals

MND Valuation as-of 31 Oct 2021

The underlying asset in the Mound Vault are as follows:

  • BUNNY = 3,000,000 tokens @ 3.41 USD : 57% 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

the MND vault’s asset values = (3,000,000 x 3.41) + (100,000,000 x 0.087) = 18.93 millions USD

So far, there are only 2.230 Million MND tokens staked in the Mound Vault and around 8,340 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) + 2.230 (MND staked) + 0.008 (MND Liquidity) ] = 2.4775

MND NAV per token = 18.93 / 2.4775 = 7.640 USD

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

  • 3 / 2.4775 = 1.2108 BUNNY

The current daily rewards in Mound Vault will include:

BUNNY daily rewards = (3,000,000 x 3.41) x (57% / 365 days) = 15,975 USD
Note : this is around 4,767 BUNNY tokens per day

QBT daily rewards = (100,000,000 x 0.087) x(9.76% / 365 days) = 2,326 USD
Note : this is around 26,739 QBT tokens per day

polyBUNNY daily rewards = 0 USD
Note : this is around 0 polyBUNNY tokens per day

Daily rewards per MND token = (15,975 + 2,326) / 2,477,500 = 0.00738 USD

So, the %APR of MND Vault could be as follows:

= 0.00738 / 7.640 USD per day

= 0.09659 % APR per day

= 35.25% 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 3.41) + (100,000,000 x 0.087) + (1,000,000 x 1.72) / 2.4775 = 8.335 USD

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

  • 3 / 2.4775 = 1.2108 BUNNY

polyBUNNY daily rewards = (1,000,000 x 1.72) x (140% / 365 days) = 6,597 USD
Note : this is around 3,835 polyBUNNY tokens per day

So, if we include polyBUNNY to the MND vault,

Daily rewards per MND token = (15,975 + 2,326 + 6,597) / 2,477,500 = 0.01004 USD

So, the %APR of MND Vault could be as follows:

= 0.01004 / 8.335 USD per day

= 0.1204 % APR per day

= 43.94% 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.

MND Vault Reward Prediction next week

Using the 30-days-amortization reward distribution method, we can then predict the reward per MND during 1–7 Nov 2021 as shown in the table below.

30-Days-Amortization reward rate prediction on 1–7 Nov 2021

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

1-Nov-21 = 3.4 BUNNY + 14.2 QBT
2-Nov-21 = 3.3 BUNNY + 14.0 QBT
3-Nov-21 = 3.3 BUNNY + 13.8 QBT
4-Nov-21 = 3.2 BUNNY + 13.7 QBT
5-Nov-21 = 3.2 BUNNY + 13.5 QBT
6-Nov-21 = 3.2 BUNNY + 13.4 QBT
7-Nov-21 = 3.1 BUNNY + 13.2 QBT

Thoughts

According to the latest Mound weekly bulletin 10/30, the team mentioned they’ve prepared the new initiatives and partnerships since last week and they will announce their initiatives soon.

Mound Weekly Bulletin 10/30

I will try to guess how those initiatives will be by mapping with the Team Bunny roadmap & Qubit Quarterly roadmap.

Team Bunny Roadmap : 2021 Q4

If the initiative is about “In-Chain Multiplexer”, I am thinking about posting the PCS LP as collateral on Qubit.

With this, I’m guessing we may initiate new LP pools on PancakeBunny Platform, these pools will deposit the LPs on Qubit so being able to leverage their borrowing assets to boost their yield. If this is the case, we may expect much more PCB TVL from these new pools.

Qubit Quarterly Roadmap

And, for the partnership mentioned in the latest bulletin, …

Since we plan to complete the APIs for Lending & Leveraging-as-a-service by November, I’m guessing it could be the partnership between Alpaca with us, the Alpaca team may decide to partner with us by acting as a super-user depositing & lending the assets from Qubit platform so they can boost the APR on their leveraged yield farming pools while the Qubit TVL will keep growing up from this initiative as well. It’s a WIN-WIN partnership, I think :)

IMPORTANT : Either new LP pools on PCB or Partnership with Alpaca team are purely my guesses. So, we need to wait for the official announcement regarding their initiatives.

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

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Tanate Sukonrattanamaetee

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