A Hack Waiting to Happen?
Key Highlights
• Hackers drained $2.4M from Bunni DEX by manipulating its liquidity curve on Ethereum and Unichain.
• The protocol paused all smart contracts, sparking wider fears across DeFi tokens.
Paradisers! If your money can vanish because someone typed clever code, is it really money or just an expensive video game? That’s the uncomfortable question DeFi investors are now asking after Bunni DEX lost $2.4M in a fresh exploit.
Blockchain sleuths from SlowMist, PeckShield, and CertiK traced the attack to Bunni’s custom Liquidity Distribution Function (LDF), a mechanism designed to manage pools but apparently just as good at mismanaging them. By placing carefully sized trades, hackers tricked the protocol’s rebalancing math, walking away with far more tokens than their fair share.
From Ethereum to Unichain, and Out the Door
The exploit spanned both Ethereum and Unichain, with attackers bridging stolen ETH through Across Protocol. Hacken’s analysis suggests the real tally could be closer to $8.4M when counting Unichain losses. Meanwhile, Bunni has pulled the plug on all its smart contracts until the dust settles.
Michael Bentley, CEO of Euler Labs, urged users to “remove funds from Bunni ASAP,” though stressed his own protocol was untouched. DeFi tokens didn’t wait for reassurance: UNI slipped over 2%, AAVE fell back toward $310, and Across Protocol’s token dropped more than 5% in a single session.
Why This Matters for DeFi
Smart contracts are meant to be incorruptible, yet 2023 alone saw over $686M drained from exploits, according to CertiK. Bunni’s breach reinforces a cruel irony: the very automation designed to remove human error is itself vulnerable to human ingenuity. Or, as one security analyst quipped: “DeFi isn’t trustless. You’re just trusting strangers with better calculators.”
Stay Ahead of the Next Exploit
The last time a similar event happened, we flagged in our streams that DeFi hacks don’t just affect the hacked project, they ripple across liquidity and sentiment, often creating hidden opportunities and dangers. In MCP News Private ($3/month, less than bottled water at an airport), we break down where liquidity really flows after events like these.
And for those in ParadiseFamilyVIP, our team is already mapping potential contagion risks and safe setups, so you don’t just survive the next exploit, you profit from knowing where the weak spots are.
