Introducing QUBIT (QBT) — Innovating Lending And Borrowing on the BSC
Hello Bunny Fam,
Thank you for following us on this amazing journey! The Team has been working incredibly hard, and in only the past two weeks we have already launched PancakeBunny on Polygon and launched our innovative Mound Vault, as promised.
We know the community has been tracking our progress through the Recovery Plan roadmap with great interest, and so today we are extremely excited to announce the launch of Qubit (QBT), which constitutes the next critical step along on the road to recovery and growth for the PancakeBunny Community!
Without further ado, please see below for more details about the Pre-Launch Liquidity Event, the Qubit launch and the design of the Qubit lending platform!
1. Qubit Pre-Launch Liquidity Event
The Qubit Pre-Launch Liquidity Event will provide liquidity for QBT ahead of the launch of the Qubit service. Users will commit assets in the form of BUNNY-BNB LP tokens. There is no cap on the amount of assets that can be committed. This means that everyone who wishes to participate will be able to do so, and there is no benefit to joining at the beginning or at the end of the Event, and everyone’s commitment will be proportionally valued. Although there is no limit to the amount of BUNNY-BNB tokens committed, there is a $2.5M cap on the liquidity that will be used to ensure QBT liquidity at the time that Qubit is launched.
What does this mean in practice? Suppose a total of $10M is committed to provide liquidity ahead of the Qubit launch with a liquidity cap of $2.5M in place. This means that at the end of the Event, only $2.5M will be used to furnish liquidity for the QBT-BNB liquidity pool, and the remaining $7.5M in commitment will be returned to users. In effect, in the above example, if you had an initial commitment of $40 of BUNNY-BNB as part of the Pre-Launch Liquidity Event, $10 of your commitment would remain in the newly established QBT-BNB liquidity pool — this would be your “Effective Commitment” — and you would be returned the $30 of your commitment that was not used.
1.1. Pre-Launch Liquidity Event: Converting BUNNY-BNB Into QBT-BNB at Preferred Price of $0.05 per QBT
At the end of the Pre-Launch Liquidity Event, all $2.5M BUNNY-BNB will be converted to $2.5M QBT-BNB at a preferential pre-launch price of $0.05 per QBT. Suppose the price of BUNNY at the time you create your BUNNY-BNB LP is $20. And suppose your Effective Commitment of BUNNY-BNB is worth $40 (essentially the combination of 1 BUNNY with $20 of BNB). Then at the end of the pre-launch Event, your BUNNY-BNB would be converted to an equivalent $40 of QBT-BNB, effectively swapping your 1 BUNNY for 400 QBT at the preferred price of $0.05 per QBT.
Upon conversion, your QBT-BNB will be automatically staked to the QBT-BNB liquidity pool for the next 30 days to support the first month of QBT liquidity. In addition to benefiting from the preferred pre-launch price of $0.05, all of the participants in the pre-launch Event will share in an additional Qubit Bonus Contribution of 25,000,000 QBT over the initial 30 day period, together with all of the other users who support QBT by adding liquidity to the QBT-BNB pool during the first month of the Qubit service.
1.2. Pre-Launch Liquidity Event/Qubit Live Service Launch Schedule & Rewards
- Pre-Launch Event Schedule and Amount
- Duration: 7/14 02:00 UTC ~ 7/19 00:00 UTC
- Pre-Launch Liquidity Committed: $2.5 Million (in the form of Bunny-BNB LP)
- Pre-Launch Liquidity Provided: $2.5 Million in QBT-BNB LP
- Unlock Schedule: Users will be able to unstake their QBT-BNB proportionally over the first 30 days of the Qubit launch on PancakeBunny.Finance.
2. QBT-BNB Pool Returns and Rewards
- Returns: Standard swap fees for liquidity provision in the QBT-BNB LP Pool
- Bonus Rewards: Over the first 30 days, an additional 25,000,000 QBT (worth $1.25 Million at the pre-launch price of $0.05 per QBT) will be contributed by Qubit beginning at 03:00 UTC on 7/19.
- NOTE: Bonus Rewards will be distributed to pre-launch participants through the normal operation of the QBT-BNB liquidity pool, as well as to other early post-launch contributors who support QBT during the first 30 days of live service.
3. Qubit Launch
- Live Service: Qubit will launch at approximately 03:00 UTC on 19 July.
1.3. Burning BUNNY
The Team is committed to using its ecosystem expansion efforts to support the recovery of PancakeBunny. Consequently, all of the BUNNY that is converted to QBT as part of the Pre-Launch Liquidity Event will be burned.
2. Introducing the Qubit Service
Qubit is Mound’s innovative DeFi lending protocol that is optimized to deliver lending as a utility for the BSC. With zero withdrawal fees, Qubit not only reduces the cost of lending and borrowing for retail users, it also enables PancakeBunny and other BSC yield aggregators to employ leveraged strategies to maximize Single Asset returns. Qubit is also committed to supporting vertical integration of code review for PancakeBunny and other farming platforms to enhance BSC ecosystem security, as well as to avoid the destabilizing impact on Layer 2 services of disorganized migrations on Layer 1. Once the Qubit launch has established a steady equilibrium, we expect to launch a wide spectrum of derivative products (such as margin trading) shortly thereafter.
2.1. Qubit Tokenomics
- Total Supply
- QBT Total supply will be 1,000,000,000. This is equivalent to a total market cap of $50M at the initial pre-launch liquidity price of $0.05 per QBT.
2. Allocation of Total Supply
- 5% of the Total Supply is allocated for the Pre-Launch Liquidity Event Bonus Rewards (see above).
- 57% of the Total Supply is allocated to reward liquidity mining activities over the course of the first year of service. 3% will be distributed over the first month, 4% over the second month, and 5% every month thereafter.
- 10% is allocated to marketing, partnerships, and promotions.
- 15% is allocated to the Devs, as with all of Mound’s protocols, to be distributed over the course of the first year.
- 3% will go towards security to fund audits, bounty programs, and other security measures.
- 10% will go to the MND vault, as previously announced.
3. Staking Rewards (QBT Staking Pool)
- There will be no withdrawal fees for any of Qubit’s staking pools.
- Qubit rewards users for committing their QBT to the “QBT Locker” for a period of time, thereby supporting the price of QBT and the operation of the Qubit service.
- Based on the number of QBT locked and the duration for which the QBT is committed to the “QBT Locker”, Qubit assigns users a “Qubit Score.”
- The more QBT you commit, the higher your “Qubit Score”.
- The greater the duration of your commitment, the higher your “Qubit Score”. The minimum duration is 1 week, and the maximum duration is 24 months.
- Based on a user’s “Qubit Score”, they receive a Bonus Multiple on their staking rewards.
- Staking rewards are calculated based on the ratio of the user’s Supply/Borrow asset volume (l) to the total volume of assets Supplied/Borrowed in the market (L).
- The value of (l) is updated according to the following formula:
- Further details on the calculation of Qubit staking rewards with illustrative examples will be released in subsequent documentation as we approach the Qubit launch.
3. Qubit Roadmap
At launch, Qubit will support the following stablecoins: USDT, BUSD, USDC, and DAI. Qubit will also support the following tokens: ETH, BTC, BNB, CAKE, and QBT.
We will also launch derivatives products (e.g. Inverse/Leverage tokens) and margin products on Qubit, where a portion of the fees obtained through the service will be used to buy back and burn QBT, and a portion will go to users who have committed QBT to the “QBT Locker”.
Finally, Qubit will expand to different blockchains, which will strengthen Qubit and the growing PancakeBunny ecosystem.
4. A Primer on Lending and Borrowing on Qubit
Qubit users can participate as both lenders and borrowers, and both receive QBT rewards for their participation. A liquidity provider, or lender, can deposit assets for lending. Liquidity providers earn interest on their staked assets. For example:
Alice the Liquidity Provider deposits USDT to the Qubit USDT pool and receives interest bearing qUSDT tokens in return. For providing liquidity, Alice will begin earning QBT as a reward. Additionally, Alice can stake her QBT and lock them away for a fixed period to receive a qScore that will boost her rewards for liquidity provision, provide voting power to participate in governance, and allow her to collect profits and fees distributed to QBT stakers. When Alice would like to withdraw her underlying assets, her qUSDT will be burned, and she will receive her deposited USDT along with any interest her assets have earned.
Borrowers borrow assets based on the commitment of collateral. For example:
Bob the Borrower deposits BNB as collateral and borrows an amount of USDT limited by the maximum loan-to-value ratio for his asset deposited as collateral. If the credit quality of Bob’s loan drops, Bob’s position will be liquidated and he will lose some of his collateral. Liquidators pay the portion of the debt owed by Bob on his behalf and receive a portion of Bob’s collateral as a reward. If the loan’s health factor remains at a non-liquidatable level by the time Bob is ready to return the borrowed USDT, Bob may pay back the USDT to the pool with interest.
5. Final Thoughts
Thank you, Bunny Fam, for staying with us on our Defi journey together. As we prepare to roll out the next piece of the Recovery Plan, we look forward to providing through Qubit a lending service that enhances ecosystem security on BSC while eliminating withdrawal fees for retail and Layer 2 users alike. Stay tuned for further updates on Qubit over the coming week, and remember, as always, Keep Calm and HOP ON!