Following a recent flash loan attack against their platform which sank their token price by 97%, the protocol unveiled Bunny Pots as a tool to prevent further exploits.
The PancakeBunny Flashloan Attack
On May 19th, PancakeBunny released a tweet telling their community that a flash loan attack had hit their protocol. The effect of the attack corrected the PancakeBunny token BUNNY by 97%. The Tweet below provided the breaking news from PancakeBunny detailing the attack by the hacker.
Flash loan attacks have been occurring quite frequently in the recent months, and the recent exploit of PancakeBunny was not completely surprising considering the sophistication hackers have shown off.
The Response? Bunny Pots
Immediately after the flash loan attack, PancakeBunny shifted into high gear. They created a plan to reimburse old holders 110% of their holdings, maintain growth (TVL), and support their BUNNY token. Their new update, which includes Bunny Pots, hopes to achieve this list of goals.
Bunny Pots is a no-loss jackpot pool where users have a 24 hour window to stake, and then the pot closes for 6 days. The pot then farms all the assets to generate a pooled yield. At the end of the farming period, one user is selected as the winner, and collects 90% of the yield farming profits, with 10% returning to the community treasury.
At the end of the farming period, everyone is returned their initial stake and a winner is declared. What else is interesting about this concept is that Team Bunny (the PancakeBunny Team) will also add tokens to boost the yield farming returns, but the tokens that are put into the pool by Team Bunny can never win the jackpot, only investors can win.
PancakeBunny isn’t going to let this attack set them back, despite initial negative response and pullback from their user base. They are proving their commitment to growth and providing a mea culpa for their investors by offering new, innovative ways to lock value for the platform. In some ways the exploit in the long term could benefit innovation and design in the company, which needs to now-more-than-ever regain the trust of investors.
PancakeBunny’s community is sticking with them, despite the recent flash loan attack. As an investor, you love to see companies bounce back, even though the team’s response would feel more confident without an exploit in the recent past. They are not alone, however.
It is worthwhile to note how decentralized exchanges are combating the issue of hackers and flash loan attacks. The Alpaca exchange created Oracle Guard to defend against flash loan attacks by creating an algorithm that watches for massive differentiations in price between the paired tokens in a pool. PancakeBunny has now introduced their own unique way of combating flash loan attacks by locking pools up with staked value, creating a safer means of achieving greater TVL.
The recent flash loan attacks are not going unnoticed by the large exchanges, and it will be incredibly fascinating to see how they respond and what they implement to combat the issue. The risk of being scammed was touched on recently by Gary Gensler, the chairman of the SEC, who indicated that untrustworthy platforms are the biggest drawback of DeFi at this time, due to a lack of infrastructural, regulatory parameters. Regardless of the backlash surrounding these attacks, it is clear PancakeBunny would prefer to make right by their investors and regain their trust.
PancakeBunny is a new and rapidly growing decentralized finance yield aggregator that is used for PancakeSwap. The PancakeBunny protocol empowers farmers to leverage their yield-seeking goals by optimizing yield compounding strategy on BSC. They provide strategies for the various needs of farmers from the highest yield seekers to the risk reward optimizing smart investors.
To learn more about PancakeBunny’s Bunny Pots, click here!
Source : bsc.news
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