In short
- Decentralized Exchange Bunnixyz has reportedly lost $ 8.4 million to a liquidity -based protection exploitation.
- The Dex has paused all smart contract activity on its network and actively investigates the attack.
- Allegedly Hackers manipulated the ‘liquidity curve’ of Bunni, also known as his LDF, to perform the exploit.
Decentralized exchange (Dex) Bunnixyz is said to have lost $ 8.4 million to a liquidity -based security exploitation.
According to On-chain security company hacking$ 6 million of the funds of the DEX was stolen via the Unichain blockchain and $ 2.4 million via Ethereum. All Unichain funds were then bridged to Ethereum using the Acrop protocol.
Confirm the attack in one tweetBunnixyz said it had paused everything Smart contract Activity on his network and actively investigated the circumstances of the attack. It added that it would offer updates soon.
Bunnixyz, founded in February 2025, is based on automated market maker Uniiswap V4, and mainly uses the Ethereum and Unichain block chains. According to Defillama, it currently has a total value of the cross-chain total value (TVL) of just over $ 50 million, although it has exceeded $ 80 million earlier in August at a certain moment.
Michael Bentley, co-founder of Lending Protocol Euler, advised users to remove their money from Bunni in a tweetAdding that while the DEX has been re -balanced in and out of Euler, the credit protocol is “not influenced or in danger”. Euler passed a large exploit in 2023 in which hackers steal nearly $ 200 million, the bulk of which was later recovered.
What happened?
According to the on-chain analyst Victor Tran, co-founder of Kyber Network, Hackers manipulated Bunni’s ‘liquidity curve’, also known as LDF (liquidity density function). This is the system that calculates how much extra liquidity there is within the exchange and its liquidity pool in balance to maintain the correct ratio of tokens.
Tran said that hackers manipulated these LDF “by making transactions of very specific sizes.” This ensured that the herbalance calculation broke, causing incorrect results for how much the share of each liquidity pool should possess.
By repeating this process, hackers reportedly withdrawn more tokens than they should have been from Bunni.
Bunni itself has not yet confirmed the mechanism behind the attack.
Daily debrief Newsletter
Start every day with the top news stories at the moment, plus original functions, a podcast, videos and more.
