PancakeBunny, which suffered an exploit earlier today, plans to compensate BUNNY holders for the difference between the token’s market cap before the attack and the current retained value, the team behind the project said in a blog post on 20 May.
According to the announcement, the team has devised a “Go Forward Plan”, which should be able to drive the recovery of the project’s total value locked (TVL) and market cap. As the exploit was an economic one, the plan also includes a way for the project to compensate the original BUNNY holders for the losses they have suffered today. The team wrote in the blog post:
“Once code has been fixed in the next 24 hours, PancakeBunny will resume normal operations with increased BUNNY emissions. Our target is to resume deposits and withdrawals at around 06:30, May 21 UTC (when timelock is executed), and we will turn off the 0.5% withdrawal fee for the time being.”
In order to ensure a high APY — meant to retain and attract TVL to the platform — PancakeBunny plans to increase its BUNNY emissions. The original Bunny Pool will continue to distribute the performance fees that have accumulated before the accident (approximately $55 million), though it would do so over the course of 90 days.
In order to compensate users for their losses, PancakeBunny will also establish a new “Compensation Pool”, which will accumulate “compensation rewards” over the next 90 days. pBUNNY tokens will also be issued to everyone that held BUNNY tokens at the time of the accident, which can then be swapped for BUNNY tokens at the end of the 90 days “recovery” period.
The new pool will not only gather resourses from the platform’s performance fee, but will also get all BUNNY tokens the PancakeBunny team was meant to receive from the protocol, which are minted at a rate of 15 BUNNY for every 100 minted.
The team behind the project is currently working with Binance and a number of security teams to try and recover some of the funds lost in the exploit, which will then be moved to the Compensation Pool. The last source of compensation will come in the form of tokens for QFI, a new lending/swap project designed to “mitigate dependencies on Venus and PancakeSwap.
Due to the increased supply of BUNNY tokens, the team also plans to implement “aggressive measures” to buy back and burn circulating BUNNY, including Cross Chain fees and Bunny Pot fees. The team has also stated it is ready to burn all BUNNY emitted to them for an “optimal amount of time”, if necessary.
As a result of the swift reaction by the PancakeBunny team, the price of BUNNY has begun to recover. Earlier today, it had dropped from $150 to $7, but is not trading at $35, in an apparent uptrend.