The embattled PancakeBunny exchange has published a detailed breakdown of the incursion that cost it millions of dollars and dumped token prices by 95% yesterday.
In a blog post titled “Go Forward Plan,” PancakeBunny revealed that it lost $45 million in the attack, not $1 billion as reported erroneously by some media outlets. It reiterated that no vaults were compromised and the attack was an “economic exploit” as reported by BeInCrypto on May 20.
Once the code has been fixed the platform will resume normal operations with increased BUNNY emissions. Over the next 90 days, the Bunny Pool will disburse 100% of the performance fees accumulated up to the time of the exploit.
“We will compensate Original Holders for the difference between the market cap at the time of the exploit and the current retained value of $39M (the Losses) by issuing a new token, pBUNNY, and by creating a Compensation Pool.”
The Compensation Pool will be funded by performance fees, a direct contribution from the team, any funds recovered from the exploit, and an airdrop of QFI tokens for a new lending project.
There will be an aggressive buy back and burn program that will mitigate the increased emissions, it added.
Postmortem exam
The attack involved several flash loans that took advantage of a low liquidity vault to mint around 6.9 million BUNNY tokens, it explained. These were then dumped on the market causing the subsequent price crash. The crash in BUNNY price affected other vaults with exposure to the token so these were locked within the hour.
There are several objectives to the plan going forward which include the new pBUNNY token, increased emissions, distribution of performance fees to stakers, a “Retained Original Value” (ROV) system for holders before the attack, the compensation pool, and the QFI token contribution.
According to the Rekt Blog, which carried out a more detailed post mortem, PancakeBunny had over $10 billion in TVL at its peak. It currently has around $1.1 billion.
BUNNY price still battered
BUNNY prices have recovered slightly on the day. The token is trading at just below $40 according to CoinGecko.
It’s still down 83% from the days before the attack when it was trading over $230 and has been smashed 92% from its April 27 all-time high of $512.
Binance Coin (BNB) had clawed back 8.5% on the day at the time of writing to reach $390.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
