Bunni DEX Exploit Drains $2.4M in Stablecoin Liquidity

Published: 2025-09-02 16:08:38 |

Bunni DEX exploit has forced a pause of all smart contracts after $2.4M in stablecoin liquidity was drained. Attackers manipulated its custom Liquidity Distribution Function (LDF) on Uniswap v4 with precise trades. They siphoned about 1.33M USDC and 1.04M USDT stablecoins into a single wallet. The team urged users to withdraw funds immediately and halted operations across supported chains pending investigation. Euler Finance, Bunni’s liquidity source, confirmed its protocol was unaffected. This Bunni DEX exploit underscores rising DeFi security risks linked to custom liquidity logic and may prompt traders to reassess exposure to bespoke liquidity structures.

Neutral

The exploit is isolated to Bunni DEX’s custom liquidity logic and does not affect major protocols or stablecoin peg mechanisms. In the short term, USDC and USDT remain stable and unaffected in value. Over the long term, this event may increase trader caution around bespoke DeFi structures, but confidence in established platforms and stablecoins is likely to remain intact, limiting broader market impact.