Advertisement

Advertisement

PancakeBunny Suffers Flash Loan Attack, BUNNY Drops By 95.5%

PancakeBunny Suffers Flash Loan Attack, BUNNY Drops By 95.5%

PancakeBunny Finance faced a flash loan attack wherein 690,000 BUNNY tokens were sold into ETH and BNB. This caused the token to lose a staggering 95.5% in its overall valuation. However, Pancakebunny insisted on Twitter that their vaults are all secure.

The company tweeted:

“Attention Bunny Fam

We would like to remind the community that no vaults have been compromised. 

The exploit was an economic exploit that attacked the price of BUNNY, using flash loans. We repeat, no vaults have been breached.”

BUNNY tokens worth >$1 billion were minted on BSC, which resulted in >$40 million stolen. 

First Venus and Now Pancake

Yesterday news came out that Venus Protocol’s XVS token was targeted and manipulated, leading to more than $200 million in DeFi liquidations and $100 million in bad debt. The PancakeBunny hack comes at a really bad time for the crypto market as everyone is still quite shaken up by the recent crash. As per PancakeBunny, the hack happened at 10:34 UTC. The company is presently researching the attack and working on a reimbursement plan. They have temporarily frozen withdrawals and deposits until they increase security.

So, What Exactly Happened?

Igor Igamberdiev researched the entire attack process and shared his insights on Twitter. This is how the attacker hunted down PancakeBunny:

  • Added some assets to the Bunny USDT-WBNB Vault.
  • Used flash loans to borrow 2.3M BNB ($704M) from seven PancakeSwap pools and 2.9M USDT from ForTube Bank
  • Added 7.7k BNB and 2.9 million USDT liquidity to the USDT-WBNB pool on PancakeSwap while leaving LP tokens in this pool.
  • Swapped 2.3 million BNB to USDT through this pool
  • Minted >$1 billion worth of BUNNY from the first step.
  • Sold off 4.8 million BUNNY for 2.3 million WBNB and 2.9 million USDT and repaid flash loans.
  • Used the Nerve bridge to withdraw 10.1k ETH (around $23.5 million) to Ethereum and another $14 million from BSC.

The Plan Of Action

PancakeBunny tweeted out to their users the following plan of action:

  • Devs are working on enabling withdrawals and are currently in the middle of testing.
  • Users will not need to pay 30% performance fees while withdrawing since PancakeBunny has disabled the minting function to enable a smooth withdrawal process.
  • As of now, the users will get their deposits and pool profits but no BUNNY rewards.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.  

Related TAGS:

You can share this post!

Advertisement