Bunni DEX Shuts Down After $8.4M DeFi Exploit
Bunni DEX permanently shut down on September 2 following an $8.4 million DeFi exploit that leveraged flash loans to manipulate its Liquidity Distribution Function. Attackers triggered rounding errors across Ethereum and Unichain stablecoin vaults, siphoning over $2.3 million through multiple DeFi protocols before converting funds into ETH and other stablecoins. Prior to the breach, Bunni DEX’s TVL had surged from $2.2 million to nearly $80 million. In response, the team paused all smart contracts and urged users to withdraw assets immediately. Remaining treasury funds will be distributed to BUNNI, LIT and veBUNNI token holders based on a blockchain snapshot, with developers excluded. Facing six- to seven-figure audit and redevelopment costs, Bunni DEX lacks the resources to relaunch. To foster community collaboration, the v2 code has been relicensed under MIT, making its liquidity-driven fee model open source. The team will cooperate with law enforcement to recover stolen assets.
Bearish
The permanent shutdown of Bunni DEX after an $8.4M exploit is bearish for BUNNI. In the short term, user confidence has collapsed, TVL has evaporated, and token holders face imminent sell pressure as they rush to withdraw and recoup losses. Excluding developers from compensation and prolonged redevelopment timelines further undermine sentiment. In the long term, although relicensing under MIT may attract community innovation, the reputational damage and costly audits needed to restore trust will likely suppress price recovery, keeping BUNNI under downward pressure.