The popular DEX was sent reeling by the exploit, eroding trust in the safety of their smart contract.
FlashLoan Exploit Details
There has been another FlashLoan exploit on a Binance Smart Chain (BSC) platform. This time, PancakeBunny was exploited, resulting in the collapse of the coin price by more than 97%. This follows other recent hacks that have shaken the chain, resulting in losses for large amounts across multiple platforms.
PancakeBunny is one of the biggest DEX platforms in the BSC chain, with more than $9 Billion in market cap and a coin price at almost $160 just one day before the exploit. The hacks resulted in a loss of ~$40M (114K WBNB & 697K BUNNY)
Through its official Twitter handle, the platform has released details of what may have happened and the attacker’s meticulous handling of the hack.cdn.embedly.com/widgets/media.html?type=text%2Fhtml&key=c4e54deccf4d4ec997a64902e9a30300&schema=twitter&url=https%3A//twitter.com/pancakebunnyfin/status/1395173093333680136&image=https%3A//abs.twimg.com/errors/logo46x38.png
What we know so far is as follows:
The hacker used PancakeSwap to borrow a huge amount of BNB
The hacker then went on to manipulate the price of USDT/BNB as well as BUNNY/BNB
The hacker ended up getting a massive amount of BUNNY through this flash loan
The hacker then dumped all the BUNNY into the market, causing its price to plummet
The hacker paid back the BNB through PancakeSwap
BSCscan uploaded the details of the transaction
To give a better perceptive, top audit platform, Certik provided a diagram of what may have transpired with the PancakeBunny exploit.
BUNNY Token Fast Crash
The market went from $140 to $240, then $0 in minutes. This is an incident similar to the $XVS market exploits, which took the $XVS coin to 100% growth in minutes, followed by a fast crash to $46.
At the time of this report, BUNNY token is at $28, a 94% correction from its All-Time High of $512 and the market price of $160 just 24hrs ago.
Closing Thoughts
The general market sentiment is down; adding code exploit, smart contract hacks, and market manipulation makes things a lot more complicated. These types of events scare away investors who are already wary of the lack of regulation, and DeFi is in desperate need of a positive trend in order to regain trust in its projects. The PancakeBunny team has promised to improve their protocol security, but it will most likely take some time before it sees the same growth it was experiencing prior to the exploit.
Source : bsc.news
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