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.
  • Increased QBT collateral price upper limit from $0.10 to $0.15
  • Added the 2nd tranch of QBT from MND Vault to QBT Deposit market so we have had 16.66M QBT deposited since 26 Oct 2021

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

MND/WBNB PCS Liquidity Pool Statistics:

  • MND tokens = 8,430 MND
  • WBNB tokens = 66.70 WBNB
  • APR% = 163.33%

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)
  • The PolyBunny Maxi pool’s principal held by the Dev team = 976,213 tokens
  • Estimated polyBUNNY tokens minted to Dev Wallet = 2,000 tokens per day
  • Days Left to reach 1M polyBUNNY on principal side = 11.89 days (Around 12 Nov 2021)
    Note : Since the sum of principals in all pools already reached 1M tokens. However, according to our Moderator, Moleh, mentioned in the Telegram, it seems like we should take a look at the principal in “only” the PolyBunny Maxi pool which is around 976K tokens and so we need to wait for 12 more days to reach 1M tokens.

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
  • polyBUNNY = 0 tokens @ 1.72 USD : 140% 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.
  • QBT = 100,000,000 tokens @ 0.087 USD : 9.76% APR
    Note: After monitoring the results, the QBT reward rate has been declined from 0.0159 QBT/MND (23 Oct 2021) to 0.0144 QBT/MND (31 Oct 2021) and my model indicates that the reward rate may keep being declined to 0.0120 QBT/MND or 9.76% APR.

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
  • 0 / 2.4775 = 0 polyBUNNY
  • 100 / 2.4775 = 40.363 QBT

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
  • 1 / 2.4775 = 0.4036 polyBUNNY
  • 100 / 2.4775 = 40.363 QBT

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.
  • This APR is calculated against MND NAV (which is 8.335 USD). So, if we calculate the APR vs MND market price (which is less than 5 USD), we should get much better rate.

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.

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.

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

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.

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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