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Bunni DEX Permanently Shuts Down After $8.4 Million Exploit

The team says a secure relaunch would require unaffordable six- to seven-figure security costs.

Overview

  • Users can still withdraw through the website, with a snapshot-based treasury distribution planned for BUNNI, LIT, and veBUNNI holders pending legal review and excluding the team.
  • The September 2 attack exploited the Liquidity Distribution/Density Function across Ethereum and Unichain using flash loans, numerous tiny withdrawals, and a sandwich-style sequence.
  • Earlier audits by Trail of Bits and Cyfrin did not catch what the team described as a logic-level flaw rather than an implementation bug.
  • Bunni relicensed its v2 smart contracts from BUSL to MIT, making features such as LDFs, surge fees, and autonomous rebalancing available to other developers.
  • A 10% bounty offer for the return of funds went unanswered, and the team says it is working with law enforcement to track the exploiter and pursue recovery.