Bunni, a decentralized exchange known for providing liquidity services, has abruptly ceased operations following a significant exploit that resulted in the theft of over $8.4 million from user funds. This event marks a concerning development in the DeFi space. 💔
The hack targeted Bunni’s Ethereum and Unichain smart contracts, exploiting a flaw in their Liquidity Distribution Function. Attackers manipulated flash loans and rounding errors to withdraw more assets than they were authorized to take.
Bunni acknowledged the financial strain caused by this exploit. They determined that restarting safely would require significant investment in audits and monitoring, which they couldn’t afford at this time.