Hello Mound family,
For anyone who hasn’t read my Mound article last week yet, let me introduce myself to you!
I am a MND token holder and my intention is to share info, analysis and thoughts in weekly basis regarding the tokens in Mound family eg. Mound (MND), PancakeBunny (BUNNY), polyBUNNY, Qbit (QBT) and any other topics related to Mound Finance ecosystem.
Mound TVL & Status
For today (7 August 2021 02:40 UTC), the TVL (Total Value Locked) in Mound Vault is 79.092 Millions USD including 3.303M BUNNY tokens plus 100M QBT tokens. The polyBUNNY tokens still have not been included in the vault yet. The Mound vault website is now showing the Effective value of MND token (MND TVL / number of MND tokens) of 29.10 USD and the accumulated farming rewards of 4.19 Millions USD or 1.54 USD per MND token
(1) When will 1 million polyBUNNY tokens be added to the Mound Vault?
The BUNNY deployer wallet is now depositing 954,319 tokens on polyBunny Maxi pool and keep receiving the rewards around 8k tokens in daily basis.
In summary, if the Dev team confirms that their tokens in the deployer will be transferred to Mound Vault when reaching 1,000,000 tokens. That means the date will be 13 August 2021.
IMPORTANT : The dev team has not confirmed that these tokens in their wallet will be transferred to Mound Vault or not. Even they say yes, when?
(2) When will 100M Qubit tokens (in the Mound Vault) being farmed?
Based on the information we have had, I still assume that the “QBT cannot be farmed anywhere until the Qubit mainnet launch”. More than that, I found that the Qubit TestNet showing the APY + Reward for QBT Supply pool around 80% APY which is 58.8% APR (Decreased from 74.26% APR last week).
In summary, if no QBT maxi pool created in August 2021, the 100M QBT tokens in MND vault should be farmed in “QBT Supply Pool” in September 2021 in Qubit mainnet with approximately 80% APY (58.8% APR).
IMPORTANT : The dev team has not confirmed the ratio of how the 100 millions token will be utilized. They could divide these tokens as 3 parts: 1) QBT Supply, 2) QBT Locker, 3) QBT Maxi pool. So, the more info we have, the more precise APR prediction can be .
(3) Mound Valuation
As-of 7th August 2021 3:32 UTC, the asset in Mound Vault are as follows:
- BUNNY = 3,305,639 tokens @ 13.71 USD : 124% APR
- polyBUNNY =954,319 tokens @ 4.93 USD : 213% APR
- QBT = 100,000,000 tokens @ 0.327 USD : 0% APR
the MND vault’s asset values = (3,305,639 x 13.71) + (954,319 x 4.93) + (100,000,000 x 0.327) = 82,725,103.36 USD
MND NAV per token = 82,725,103.36 / 2,717,604 = 30.44 USD
And for every 1 MND token holding, it equals to hold 3 tokens as follows:
- 1.216 BUNNY
- 0.351 polyBUNNY
- 36.797 QBT
The current daily rewards in Mound Vault will include:
BUNNY daily rewards = (3,305,639 x 13.71) x(124% / 365 days) = 153,964 USD
polyBUNNY daily rewards = (954,319 x 4.93) x (213% / 365 days) = 27,455 USD
Total daily rewards = 153,964 + 27,455 = 181,419 USD
Daily rewards per MND token = 181,419 / 2,717,604 = 0.06675 USD
So, the current %APR for MND vault
= 0.06675 / 30.44
= 0.2192 % APR per day
= 80 % APR per year
(4) Claiming Mechanism
According to the Mound Vault countdown, the MND token holders should be able to start claiming their rewards by 10th September 0:00UTC.
As the claim mechanism has not yet been 100% clear, but we can start assuming that it could be as follows:
- Claiming rewards could be distributed as x BUNNY tokens, y polyBUNNY tokens and z QBT tokens
- polyBUNNY rewards could be wrapped as wpolyBUNNY in BSC
- Claiming Frequency could be in daily basis
- We can expect a “claim” button in Mound Vault website to claim the rewards as we have had on the pBUNNY compensation pool
(5) Claiming Reward Distribution (1st time)
The community is now assuming that the first Claiming rewards on 10th September 0:00 UTC could be “ALL” accumulated rewards in the Mound Vault.
For now, the accumulated rewards is around 4.23 Millions USD.
According to daily rewards calculation in bullet (3), the vault should generate 181,419 USD daily reward. So, we may assume the accumulated rewards on 10th September as below.
Simple Accumulated Rewards
= 4,230,000 + (181,419 x 33 days)
= 10,216,827 USD
Simple Accumulated Rewards per MND token
= 10,216,827 / 2,717,604
= 3.7595 USD
Note : For anyone who needs more precise accumulated rewards, we need to take the 80% APR, daily auto-compounding and 1m polyBUNNY factors into the calculation. This approach shows another conservative numbers as below.
Auto-compounding Accumulated Rewards deduct polyBUNNY rewards on 7th to 13th August that will make up 1m polyBUNNY
= 4,230,000 + [(82,725,103.36 x (1 + (0.8 / 365)) ^ 32 -(82,725,103.36)] -164,730
= 4,230,000 + 6,003,591.287 -164,730
= 10,068,861.29 USD
Auto-compound Accumulated Rewards per MND token
= 10,068,861.29 / 2,717,604
= 3.7050 USD
In summary, we can expect the Mound Vault to distribute accumulated rewards around 3.7 USD per MND token on 10th September.
Even almost everyone is now expecting these 3.7 USD rewards distributed on 10th September. I am still HOPING that the Dev team will NOT pay these rewards BUT will use it to boost our daily rewards and ecosystem stability in the long run.
Please don’t get me wrong. I need the big rewards as well but I have two major reasons which I think is very important in the “long term” :
- The accumulated rewards reinvested to the maxi pools will make our daily rewards after 10 Sept MUCH bigger. Below figure represents the daily rewards per MND token will be increased 17.28% from 0.081 USD to 0.095 USD. The more anticipated daily rewards, the more valuable MND token will be.
2. The more locked BUNNY & polyBUNNY assets in the Mound Vault means the more BUNNY & polyBUNNY in the maxi pools. The more tokens in the maxi pool will increase the BUNNY & polyBUNNY token price and supplies stability in the long run.
Let’s assume the BNB & ETH future price (after 10th September 2021) will be 350 USD and 3000 USD respectively,
With the BUNNY maxi FRE ratio = 1 BNB:18 BUNNY,
If the BUNNY price is less than 19.44 USD (350 / 18), the BUNNY maxi pool will keep buying back BUNNY tokens from the market using 30% performance fee instead of minting new BUNNY tokens. The more BUNNY maxi size, the more BUNNY price & supplies stability!
With the polyBUNNY maxi FRE ratio = 1 ETH:500 polyBUNNY ,
If the polyBUNNY price is less than 6 USD (3,000 / 500), the polyBUNNY maxi pool will keep buying back polyBUNNY tokens from the market using 30% performance fee instead of minting new polyBUNNY tokens. The more polyBUNNY maxi size, the more polyBUNNY price & supplies stability!
So, the more BUNNY and polyBUNNY stability, the more Mound vault sustainability!
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 Weekly Updates]
[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 (could be around 3.2–3.7 USD 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 (could be around 0.06–0.08 USD per MND token)
- In the future (2+ months), the Mound team could add some new project’s token 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