The decentralized exchange Bunni has announced its closure due to an $8.4 million attack in September, becoming the second crypto project team to announce its exit this week.
According to a message released by the team on the X platform on Thursday, they will gradually cease operations due to a lack of funds.
The team stated that the recent attack has led to stagnation in Bunni's growth, and to safely restart, they would need to invest hundreds of thousands to millions of dollars just for auditing and monitoring costs—funds they simply do not have.
The team claims they cannot afford the development and other expenses required to restart the protocol.
Bunni's closure comes just days after the founding team of the Layer-1 blockchain Kadena announced they would cease operations due to a challenging market environment.
The protocol was attacked on September 2 on Ethereum and the Layer-2 network Unichain, resulting in a total loss of $8.4 million, after which operations were suspended.
According to Bunni's blog on September 4, malicious actors exploited the protocol's codebase to carry out the attack.
Bunni DEX is built on Uniswap v4 and optimizes liquidity provider returns through its custom mechanism, the "Liquidity Distribution Function."
Data from DefiLlama shows that before the attack, Bunni's TVL experienced exponential growth, soaring from $2.23 million on June 10 to nearly $80 million on August 19.
Despite ceasing operations, the team has re-licensed the Bunni v2 smart contract from a commercial source code license to the MIT license, an open-source software license that has received some praise from the community.
This will allow any developer to use all the features and innovations developed by Bunni, such as liquidity allocation functions, surge fees, and automatic rebalancing.
The team also stated that users can withdraw assets through the website until further notice. Additionally, the remaining funds will be allocated to BUNNI, LIT, and veBUNNI token holders, pending necessary legal approvals; however, team members will not receive any funds.
The team stated they will continue to work with law enforcement to recover the $8.4 million stolen by malicious actors.
On Tuesday, the founding team of the Layer-1 blockchain Kadena announced they would gradually shut down and stop all network operations.
The team cited the challenging market environment as the reason for the closure. Despite the founding team's exit, the network will continue to operate and be community-driven.
According to CoinGecko data, the network's native token KDA has dropped 70% since the announcement, currently priced at $0.06.
Related: Potential giant rising? Polymarket's valuation is expected to leap to $15 billion due to a new round of financing, achieving a tenfold increase.
Original article: “Bunni DEX Becomes the Second Crypto Project to Shut Down This Week”
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