Following a major flash loan exploit that saw the price of BUNNY collapse by 97%, the PancakeBunny team has announced a plan to reimburse the community for its losses.
PancakeBunny suffered a flash loan exploit on May 20th, prior to the event the token was traded up to $500. The attack and its price action took place in under half an hour, before the cost of BUNNY consolidated to $8.80. At time of press the BUNNY token is now trading at around $20, a 94.4% correction in the past 30 days.
Swiftly after the attack the PancakeBunny team were quick to announce that they had a reimbursement plan in the works. PancakeBunny has now announced the terms and conditions of the plan and explained how members can unlock rewards in the form of CAKE, BNB and BUNNY.
Making Things Right
To attempt to resolve the issue satisfactorily, PancakeBunny have created a Compensation Pool and a token named pBUNNY. PancakeBunny has taken a snapshot of BUNNY before the attack and placed the pBUNNY in the pool, displaying it in the pool UI. pBUNNY is not automatically distributed. This means that pBUNNY will have to actively claim their compensation.
There are some complications to the plan however, which users should pay notice to. Firstly, users which had BUNNY tokens staked on third party platforms may have greater difficulty claiming their pBUNNY rewards. This is because the contracts which the BUNNY are locked into may vary, meaning that counting and attribution methods vary with them. PancakeBunny is working with a number of protocols including Beefy, Crow and Tree. PancakeBunny further promises that they have reached out to all platforms that users have brought to their attention.
PancakeBunny has also revealed that Beefy are already working with them to solve the counting, attribution, and related problems. PancakeBunny has also reached out to the centralized MXC exchange.
The rewards available from the Compensation Pool are CAKE, BNB and BUNNY. Each reward comes from a different source. In a recent blog post PancakeBunny revealed the sources of each reward:
BUNNY: the rewards come from Team Bunny and the developer’s Bunny.
CAKE: the rewards here come from the performance fee collected in CAKE Pool and the decomposed CAKE performance fee from CAKE-BNB Pool.
BNB: rewards come from the Single Asset Vault and LP Pool performance fees that will be swapped to BNB.
The rewards in the compensation pool will be added to in time, and will be distributed to users on a proportional basis. This package of compensation will give hope to BUNNY holders who lost significant value thanks to this latest flash loans attack on BSC.
Flash loans remain an ever-present threat for DeFi protocols and one that malicious actors have been only too happy to exploit thanks to the lucrative nature of this exploit. This most recent attack is believed to be worth around $40 million to the attackers, although the financial fallout caused by the event far exceeds this dollar value.
PancakeBunny isn’t the only BSC protocol to be successfully targeted this month, joining Spartan among the recently compromised platforms. In the example of Spartan, a code exploit led to one of the pools, valued at $30 million, being drained of funds.
As market indicators seem to point towards more bearish sentiment, these exploits do little to help the DeFi sector as a whole. With its Compensation Pool, PancakeBunny is doing its best to restore the damage to its reputation and the pockets of its users. For those directly affected by the exploit, it may take more time for their confidence to be fully restored.
Source : bsc.news
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