Bunny Rewards Refresher
Hello Bunny Fam! 🐰🐰🐰
This past week has been one of great excitement and remarkable growth! So as a special welcome to all of the new members of the Bunny community, we here at Team Bunny thought that this would be the perfect time to share an updated primer on how Bunny rewards work.
The Bunny Distribution
Pancake Bunny works by providing liquidity to lending and trading protocols (e.g. Venus, Pancake Swap) and compounding the returns. When you claim your profits, 70% of your returns take the form of your original tokens (our standard vaults) or Cake (our Cake Maximizer vaults). And 30% of your profits — your Bunny Distribution — are converted to BUNNY tokens that are issued to you at that time.
How many BUNNY do I get?
Currently, BUNNY is emitted at a rate of 5 BUNNY per 1 BNB of Bunny Distribution. In other words, you receive a number of BUNNY equal to exactly 5x the value, in BNB, of your Bunny Distribution. It’s that simple.
The Bunny Dividend
BUNNY is more than just another speculative cryptocurrency or governance token — its most distinctive feature is that it entitles you to a share of Bunny Distribution profits. Simply put, when you stake BUNNY in the original BUNNY pool, you receive a share of the Bunny Distribution of the entire community. In the past 30 days alone, Pancake Bunny has distributed over USD 66M through the original BUNNY pool!
Auto-Compounding + Smart Leverage
With the exception of our 3 BUNNY pools, all of our asset pools are auto-compounding, including our Cake Maximizer vaults. Our auto-compounding pools farm Venus and Pancake Swap recursively, generating inexorably higher yields by compounding their basic APR multiple times a day. In addition to auto-compounding your returns, our single asset Smart Vaults also leverage your principal intelligently and dynamically to ensure that Venus interest and withdrawal fees do not exceed critical APY thresholds.
Bunny Mechanics Illustrated
Our pools provide both auto-compounding as well as the capital gain from receiving BUNNY tokens. Please see the example below for calculation purposes.
User A is a staker in one of our non-BUNNY pools (token X). At the time of withdrawal, user A will get 70% of his profits in the respective auto-compounded farm token, and receive 30% of his profits as BUNNY. This 30% worth of profit is calculated in $ equivalent of BNB, and for every 1 BNB User A gets 5 BUNNY.
User B does not use the Bunny platform, but still stakes the same token as User A. If we assume that the original profits of the farmed token is the same for User A and User B, set at $1000, User A will always have a larger return provided that the price of BUNNY stays above ⅕ of the price of BNB. Currently BNB is $590, while BUNNY is $390, so if User A and User B both decided to claim profits and withdraw the pool, User B would just get $1000 in profits in Token X, while User A, who uses the Bunny Platform would receive $700 in Token X and (($300/$590) x 5 BUNNY)=$991. In the end User B walks away with $1000 while User A receives a total of $1691.
THANK YOU BUNNY FAM!
We hope today’s article has helped you to understand the dynamics of BUNNY tokenomics. If you have more queries, we would love to continue the conversation on our socials!