PancakeBunny will seek to leverage Chainlink’s reputable price feeds to mitigate data manipulation.
Announcement and Partnership Details
Yield-aggregator platform Pancake Bunny announced a new partnership on June 4th through Medium. The deal with Chainlink will look to bolster the platform’s recovery in the aftermath of a recent flash loan exploit on May 20.
The main goals will be to improve the platform’s security and patch the loopholes discovered in the investigations that followed the attack. These measures will strengthen the platform’s security and hopefully prevent future flash loan attacks from happening.
What The Partnership Entails
PancakeBunny has modified the code of its token’s price oracles. This modification enables the oracles to leverage Chainlink’s contract. The result is a price feed that is resistant to price manipulations.
A portion of the code has also been updated to detect any pair imbalance in Bunny token’s minting contract. If any imbalance is detected, the protocol tinkers with liquidity as appropriate to restore the balance. The team, after applying the code update, simulated a potential flash loan attack that was successfully subdued.
To complement code modification, PancakeBunny will have its entire code audited. Other measures taken to solidify the platform’s security are documented here.
Why PancakeBunny Chose Chainlink
The PancakeBunny team discovered specific vulnerabilities in the smart contract codes as the weak links exploited in the attack. These vulnerabilities enabled the attackers to manipulate the price of the Bunny token.
When it comes to the integrity of data and price feeds, Chainlink is one of the world’s premium providers. The platform aggregates high-quality data and reliable price feeds using its decentralized oracle network.
Chainlink is renowned because of the following:
Their price feeds are obtained from reputable sources. In addition, the platform uses a data collection model that is not prone to manipulation. This should protect PancakeBunny from future loan attacks because these attacks rely heavily on data manipulation.
At every level, Chainlink’s network is decentralized. There is no single point of failure. Thus, the tendency to have downtime is all but eliminated. Altering the data in the network is also extremely difficult.
The oracle nodes that generate Chainlink’s price feeds are operated by foremost data providers. These nodes have consistently delivered reliable service.
Users can independently verify the live price feeds.
About the Recent Attack
Recently the Binance Smart Chain ecosystem has been hit by series of flash loan attacks. In May 2021 alone, about $167 million was reportedly stolen from 11 BSC protocols. The advent of flash loans on decentralized finance (DeFi) got the community excited about its positive utility, but it is now apparent that it has attracted the attention of shady actors as well.
On May 20, PancakeBunny was the hardest hit, losing about $45 million in an attack. Not only was a significant amount of money stolen from the platform, but the value of their native token also plummeted. The Bunny token dropped in value by as much as 97%.
As soon as PancakeBunny’s flash loan exploit was detected, the platform took immediate steps to mitigate its effect on the ecosystem and holders of the Bunny token. A no-loss jackpot pool, Bunny Pot, was created for holders to stake their tokens. Bunny Pot incentivized holders to lock up their tokens which helped PancakeBunny’s total value locked (TVL) to recover. After assuring investors that their funds are safe, PancakeBunny has taken far-reaching measures to fix the loopholes that its attackers exploited.
Flash loan hacks are increasing in frequency, and the methods used by criminals are getting more sophisticated. The unwelcome attacks tend to jolt investors’ confidence in the affected platforms. The attacks are a reminder to all DeFi users to be aware of risks.
PancakeBunny is a decentralized cross-chain yield aggregator. The platform, which runs on both Ethereum and Binance Smart Chain networks, uses various strategies and rewards to enable investors to optimize their yields.
For more about PancakeBunny, follow their official media channels,
Source : bsc.news
Founded in 2020, BSCNews is the leading media platform covering decentralized finance (DeFi) on the Binance Smart Chain (BSC). We cover a wide range of blockchain news revolving mainly around the DeFi sector of the crypto markets. BSCNews aims to inform, educate and share information with the global investment community through our website, social media, newsletters, podcasts, research, and live ask me anything (AMA). Our content reaches hundreds of thousands of global investors who are active in the BSC DeFi space.