Decentralized exchange Bunni announced its closure following an $8.4 million exploit in September, becoming the second crypto project team to throw within the towel this week.
In a post on Thursday
“The recent exploit has stalled Bunni’s growth, and to restart safely we’d need to pay six to seven figures in audit and monitoring costs alone – which requires capital we simply don’t have,” they said.
The team said it didn’t have a big amount for development costs and other expenses needed to get the protocol back on course.
Bunni's closure comes days after the founding team behind Layer 1 blockchain Kadena announced it might be ceasing operations as a consequence of difficult market conditions.
Source: Bunni
Bunni DEX was exploited in September
The protocol was exploited on September 2nd price $8.4 million across Ethereum and the Layer 2 network Unichain. The operation was then stopped.
In a September 4 blog post, Bunni said that the malicious actors had exploited the protocol's codebase.
Bunni DEX was built on Uniswap v4 to optimize returns for liquidity providers through the usage of its custom mechanism called Liquidity Distribution Function.
According to DefiLlama, Bunni was growing exponentially before the exploit, as its TVL shot from $2.23 million on June 10 to just about $80 million on August 19.
Open sourcing the code
Although operations have ceased, the team has relicensed Bunni v2 Smart Contracts from the Business Source License to the MIT License, an open source software license that received some praise in the neighborhood.
This allows every developer to benefit from all of the features and innovations developed by Bunni, similar to: B. Liquidity distribution functions, swell fees and autonomous rebalancing.
The team has also stated that users will have the ability to withdraw their assets through the web site until further notice. Additionally, the remaining treasury assets can be distributed to BUNNI, LIT and veBUNNI token holders upon receipt of the mandatory legal approval; However, team members don’t receive any funding.
The team said it’s going to proceed to work with law enforcement to get well the $8.4 million stolen by malicious actors.
Kadena founding team leaves the corporate
On Tuesday, the founding team of Layer 1 blockchain Kadena announced that it was winding down and ceasing all network operations.
The team cited difficult market conditions as the explanation for the closure. Even if the founding team steps down, the network will live on and be supported by the community.
However, the network's native token KDA has plunged 70% for the reason that announcement and is currently trading for $0.06, based on CoinGecko.
