Bunni DEX Shuts Down After $8.4 Million Exploit
Decentralized exchange Bunni has officially announced that it will be suspending operations following an $8.4 million exploit in early September. This makes it the second crypto project to fail this week amid a wave of setbacks in the decentralized finance (DeFi) sector.
Bunni Exploit Drains $8.4M Across Ethereum and Unichain
The exploit, which took place on September 2nd, cost Ethereum and the Layer 2 network Unichain $8.4 million, resulting in an immediate halt to operations. A subsequent blog post on September 4 confirmed that attackers had exploited vulnerabilities in the protocol’s codebase.
Based on Uniswap v4, Bunni aimed to optimize returns for liquidity providers through a custom system called the Liquidity Distribution Function. Before the exploit, the protocol experienced explosive growth. According to DeFiLlama, the total locked value (TVL) increased from $2.23 million in June to almost $80 million by mid-August.
Open-Sourcing and Relicensing of Bunni v2 Smart Contracts
While Bunni will no longer be operating, the team has open-sourced its Bunni v2 smart contracts and relicensed them from the Business Source License (BSL) to the MIT License. The move allows developers to freely integrate Bunni’s innovations, including liquidity distribution features, swell fees, and autonomous rebalancing, into new DeFi projects.
The decision was praised by parts of the community for preserving the project’s technical contributions. Users can continue to withdraw assets through the Bunni website until further notice, and the remaining treasury assets will be distributed to BUNNI, LIT, and veBUNNI token holders once legal approvals are received.
Kadena Announces Shutdown Amid Difficult Market Conditions
Bunni’s closure follows the recent closure of Kadena’s founding team, which also cited “difficult market conditions.” Despite the exit, Kadena’s network remains operational, although its native token KDA has fallen over 70% since the announcement and is currently trading at around $0.06, per CoinGecko.
Kadena’s mainnet went live in January 2020 and promises to combine Bitcoin-like security with high throughput through an architecture known as “braided chains.” At its peak in 2021, Kadena’s token reached a market cap of nearly $4 billion, supported by a growing community and a $100 million funding program for Web3 developers. But the network struggled to achieve sustained adoption.
According to data from DeFiLlama, Kadena’s total value locked in DeFi has fallen to just $128,000, a 71% decline in 24 hours and a far cry from its all-time high of $11 million in August 2022.
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