Decentralized exchange BunniXYZ suffered an $8.4 million loss due to a liquidity exploit. The platform has paused all smart contract activities and is investigating the incident. Hackers manipulated Bunni's Liquidity Density Function (LDF), which determines liquidity within the exchange, facilitating trades that violated expected outcomes. The funds lost included $6 million from the Unichain blockchain and $2.4 million from Ethereum, with all Unichain assets bridged to Ethereum. Launched in February 2025, BunniXYZ initially had a cross-chain Total Value Locked (TVL) exceeding $80 million but later dropped to just over $50 million. Users were advised to withdraw their funds from Bunni, similar to advisements given in the past when other platforms faced security breaches. As concerns rise, Bunni continues to assess the situation and will provide updates on the investigation.

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