PancakeBunny Finance, a decentralized finance (DeFi) protocol based on the Binance Smart Chain, released a detailed breakdown of the invasion that caused millions in losses, and the price of the token fell 95% yesterday.
PancakeBunny revealed in a blog post titled “Go Forward Plan” that it lost $45 million in the attack, instead of the $1 billion that some media outlets falsely reported. It was repeated that no vault was compromised.
Binance Smart Chain’s PancakeBunny Set to Resume Normal Operations
After the code is set, the platform will resume normal operations and increase BUNNY emissions. Over the next 90 days, “BUNNY Pool” pays 100% of the accumulated performance fees up to the point of use.
“We will compensate Original Holders for the difference between the market cap at the time of the exploit and the current retained value of $39M (the Losses) by issuing a new token, pBUNNY, and by creating a Compensation Pool.”
The compensation pool is funded through performance fees, direct team contributions, funds reclaimed from exploits and QFI token airdrops for new loan projects.
It added that there will be an aggressive buyback and incineration program to mitigate the spike in emissions.
Describing the Cause of Attack on PancakeBunny
It was stated that the attack involved several short-term loans that used a low-liquidity vault to mint approximately 6.9 million BUNNY tokens. They were then put on the market, which caused the subsequent drop in prices. The BUNNY price drop affected other vaults and exposed the tokens so that they were locked within an hour.
The plan includes multiple goals, including a new pBUNNY token, increased emissions, the distribution of performance fees to stakeholders, a Retained Original Value (ROV) system for attacker holders, compensation pools, and QFI orders. Brand contribution.
According to the Rekt blog, a more detailed postmortem was performed, PancakeBunny’s TVL topped $10 billion at its peak. It currently has around $1.1 billion in assets.
The Price of BUNNY Regaining Momentum
The price of Bunny recovered slightly that day. According to CoinGecko, the trading price of the token is a little under $40.
Compared to the day before the attack, the transaction price was trading over $230 and so far has fallen 83%. It is down 92% from its all-time high of $512 on April 27th.
At the time of writing, Binance Coin (BNB) has moved 8% today to hit $380.
