Pancakebunny hacked! What happened and defi you can trust
BUNNY dumped 96% after attackers used a flash loan exploit to pocket a cool $200 million.
As if yesterday’s Bitcoin crash wasn’t enough, defi markets weren’t spared from the bloodshed as Pancakebunny was hit with a flash loan attack.
This brings up yet more questions around defi and especially those platforms built on the cheap, yet highly centralised Binance Smart Chain.
Many readers within the LeoFinance have a vested interest in how this Pancakebunny hack will play out and whether scams will continue to plague the network.
Let’s go over what happened to Pancakebunny, talk about the Binance Smart Chain itself and whether
What happened to Pancakebunny?
Pancakebunny was targeted by an attacker who used a flash loan to manipulate the price of BUNNY.
A flash loan is an uncollateralised loan option in defi that enables you to borrow crypto instantly and easily.
To take out a flash loan, no collateral is needed.
Provided that the liquidity is returned to the pool within just the single transaction block.
So what happened here was the attacker used PancakeSwap to take out a flash loan in BNB, using it to manipulate the price of BUNNY.
By placing this ridiculously large amount of BNB into the Pancakebunny pool, the equilibrium changed to give them a huge amount of BUNNY.
The attackers then withdrew from the pool, taking a majority in bunny due to the equilibrium shift, and subsequently dumped it on the market.
They made away with a cool $200 million, repaid their BNB loan and drifted off into the virtual abyss.
Of course the nature of crypto means it can all be tracked on the blockchain and is an interesting look if you have the time.
As a result, the price of BUNNY tanked 96% to its lows.
While no vaults of the yield aggregator were compromised in the same way that you’d see a traditional defi rug pull executed, this is just another blow to the entire defi ecosystem.
In a subsector of the cryptocurrency market that already struggles with trust issues, flash loan exploits are just another what if for investors to worry about.
So is Binance Smart Chain safe?
While we’re seeing a larger proportion of hacks, scams and rug pulls on Binance Smart Chain based projects, it’s no more unsafe than it’s Ethereum based defi counterpart.
This was a flash loan attack, a mechanism that’s not unique to BSC, but one that has now at least been taken off their “CeDeFi” network.
BSC has offered a cheaper alternative to Ethereum when it comes to defi, all thanks to the low cost of transacting on the network.
I mean who doesn’t love the lower fees on BSC?
While BSC is technically no less safe than Ethereum, this Pancakebunny attack is just another blow for the alternate chain’s hopes of competing with the top dog.
When it comes to defi, just remember that we’re truly on the cutting edge of this new tech.
Things like this are going to happen, we knew this when we invested in them.
All we can do now is wait and see how the dust settles.
Defi you can trust on BSC
Something that caught my eye when reading some of the media releases about the Pancakebunny attack was the reimbursement plan by the anonymous team.
Anonymous team, lol.
While we call it decentralised finance, defii is not truly decentralised.
There’s still a huge level of trust required in the network, the platform itself and especially the development team behind it all.
When I read the words ”anonymous team”, I certainly don’t feel like opening my digital wallet and placing my hard-earned under their custody.
In my opinion, an anonymous team is not a positive thing that you should be looking for when choosing a defi platform.
Think about it like this.
There’s no point in receiving 2000% APRs for a day, if you get rug pulled by a shady development team and lose everything you’ve gained.
Cub Finance
When it comes to defi platforms I can trust, Cub Finance has a huge differentiator in that it’s led by a team you can trust.
Cub Finance is developed by the team behind the decentralised blogging app, LeoFinance.
The team has a 2 year track record of delivering value for the community within the crypto space and there’s no reason to expect any different from Cub.
Name me another defi platform with a team as experienced, transparent and with a track record of the LeoFinance guys?
That’s right, there simply aren’t any others.
So make the right call and choose Cub Finance when it comes to defi.
With 250% APR on the CUB-bUSD LP at the time of writing and the price of CUB just $1.00, Cub Finance certainly offers a level of both safety and opportunity not founded elsewhere in the defi world.
Best of probabilities to you.
Direct from the desk of Dane Williams. This blog is exclusive to leofinance.io
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This defi blog is exclusive to leofinance.io.
Posted Using LeoFinance Beta
