The most recent prey in the loop of flash loan attacks targeting the decentralized finance (DeFi) industry’s one of its most significant players, PancakeBunny (BUNNY).
Binance Smart Chain-based DeFi token Pancake Bunny (BUNNY) declined massively after the flash loan attack. An extensive 700K BUNNY coins were liquidated and sold into BNB and ETH.
Flash Loans are a modern kind of monetary primitive that permits clients to open unsecured loans with the sole specification that the passage will be paid back within the same transaction or reverts. It’s a critical takeoff from conventional DeFi loaning, which frequently requires a client to over-collateralize a loan upfront.
How Did it Occur
It all started when Pancakebunny on 20th May 2021, wrote on Twitter that.
Attention Bunny Fam Our project has suffered a flash loan attack from an outside exploiter. We will be posting a post mortem,in-depth analysis
According to the Pancake Bunny team, the attacker used the popular PancakeSwap platform to borrow many BNB tokens in a flash loan. They then manipulated the prices of USDT/BNB and BUNNY/BNB markets to obtain a larger-than-normal amount of BUNNY tokens, which were then dumped onto the market and tanked the price.
On top of it, the attacker even attached a rabbit-related pun as a note on the transaction that read, “Aren’t Flashloans Earitating”.
However, recently some of the publications noted that $1 Billion worth of BUNNY Finance coins were minted and stolen from BSC. But Bunny finance Twitter handle confirms that this was solely an economic exploit, and the no vaults have been compromised.
Team Response
The Pancake Bunny team has ensured that its developers are currently operating for a swift withdrawal of the user funds. The developers expect the matter to be resolved in a few hours. Furthermore, Bunny Finance is prepared to forego the withdrawal fee.
At publication time, the BUNNY DeFi token is trading at a price of $32.83 with a market cap of $16,749,782. From trading at $162.25, it has hit a low of $6.13 within 24 hours.
About Pancake Bunny
Pancake Bunny is a BSC-based DeFi project drove by Mound, a startup that raised $1.6 million from Binance Labs and various financial backers in April. The venture helped BSC clients augment their yields across pools from AMMs like Pancakeswap. Clients are to secure their tokens Bunny’s brilliant agreement to procure more CAKE, WBNB, and BUNNY tokens as remunerations.
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