BUNNY Down Over 97% from its April Peak, Project Enhances Security Protocol After the 2nd Exploit
PancakeBunny, BSC-based decentralized finance (DeFi) yield farming aggregator and optimizer, has been hacked yet again.
Two months ago, PancakeBunny got rekt on Binance Smart Chain, and this time, the same happened on Ethereum sidechain Polygon. In May’s flash loan attack, $45 million was lost; this time, only $2.5 million was lost.
There has been growing speculation that it could be an inside job while the team assures a plan to compensate the victims.
For now, the total value locked (TVL) in the project is at $602 million, up from $593.65 million last week after the hack.
According to Defi Llama, in early May, the project boasted a whopping $7.54 billion in TVL.
The “economic exploit” occurred on July 16, resulting in the minting of 2.1 million polyBUNNY leading to a drop in its price.
As of writing, BUNNY is trading $14.64, down 21% in the past week and more than 97% from its all-time high of $512.75 three months back, as per CoinGecko.
According to the post-mortem, the attacker made a small deposit in one of the Bunny Vaults and, at the same time, made a considerable deposit directly to MiniChefV2 (SushiSwap). They then called for the function “withdrawAll” to execute the attack with the amount deposited in the MiniChefV2 as interest.
The same week, the same exploit occurred on PancakeBuny fork, ApeRocketFi, which lost $260k on BSC and $1 million on Polygon.
Now, the PancakeBunny team has ensured that they are “directly compensating everyone who possessed polyBUNNY at the time of the exploit in the amount of $2.4M.”
Those who held polyBUNNY, including polyBUNNY-ETH and polyBUNNY-QUICK at the time of the exploit, are eligible for compensation in the form of MND tokens from the Team’s share of MND.
MND is the fixed-volume utility token associated with the Mound (MND) Vault to which the Bunny Community has contributed nearly 2 million BUNNY. The Team has/will contribute(d) 1 million BUNNY, 1 million polyBUNNY, 100 million QBT, a portion of all future project tokens, and a share of all future fees from fee-based products. It said,
“The final price of MND will be set at the close of the Community commitment period in a little over 1 week and will be determined by the total value of the assets committed to the Mound (MND) Vault.”
In light of the recent exploit, the team has also revised its protocols to maximize security for the launch of new products with lending platform Qubit to be the first product to launch under this enhanced security protocol.