BREAKING: BSC-based DeFi Project Pancake BUNNY Suffers $1 Billion Exploit
Pancake Bunny, a DeFi yield optimizer project built on Binance Smart Chain, has supposedly suffered an exploit that resulted in roughly $1 billion being drained from its smart contracts. The token price has dropped more than 97% in the aftermath while the community awaits an update from the team.
In a single transaction, an unknown user had drained BUNNY of roughly $1 billion, exchanging the flash loan loot to BNB, Binance-pegged USDT, and other tokens via Pancakeswap.
Pancake Bunny is a BSC-based DeFi project led by Mound, a startup that raised $1.6 million from Binance Labs and a number of investors in April. The project helped BSC users maximize their yields across pools from AMMs like Pancakeswap. Users are to lock their tokens in Bunny’s smart contract to earn more CAKE, WBNB, and BUNNY tokens as rewards.
At its peak, the project had surpassed $10 billion in total value locked (TVL) but has struggled with boosting its token price as a result of excessive emissions. In its most recent update, the team announced it was planning a new approach to deal with the token’s emissions in the wake of the recent market volatility.
However, it would now seem that they have to deal with a problem beyond the price performance of the native token.
The team has subsequently released an update detailing how the flash loan incident took place.