Pancake Bunny, a decentralized finance protocol from the house of Binance, has suffered an attack. The platform has been exploited in an attack related to its flash loan, and initial estimates pegged the total loss to be around $1 billion. As a result of this attack, the price of the BUNNY token dropped to zero, with the latest price reports suggesting a drawdown of 95%.
According to the information shared by the platform, an outside exploiter executed the attack on the flash loan project. However, contrary to initial speculations, the net loss suffered by the protocol comes around $50 million. Besides, it is a relief that none of the vaults were compromised in the attack, although the news of this heist erased $110 million from the BUNNY token’s market capitalization.
The attack was executed on the PancakeSwap platform, with the attacker borrowing a huge number of tokens on the flash loan process. The borrowing was followed by manipulating the prices of BUNNY/BNB and USDT/BNB to get access to the more value of BUNNY tokens. These tokens were later on dumped into the market, leading to a complete collapse in the value of BUNNY.
To further humiliate the Pancake team, the attacker left a rabbit pun with the note – “Aren’t Flashloans Earitating.” The complete details related to this attack can be found on the BscScan. The deposit facility in the protocol has been temporarily disabled by the company, and an investigation has been launched to know the loopholes that have led to this compromise. The team is also working on details of the reimbursement plan to minimize financial loss to investors by paying them a portion of their lost money. An official post-mortem report is expected to be released soon by the platform.
This attack has once again highlighted the vulnerabilities of such protocols, challenging its immunity from such attacks and heists. It also has a bearing on the entire cryptocurrency and blockchain domain to further up its ante and use the highest level of security to protect the hard-earned money of the investors.