Uniswap v4-based decentralized alternate Bunni has introduced that it’s formally closing down, citing monetary constraints following a latest exploit that resulted in $8.4 million price of crypto property being stolen. 

Bunni has joined layer-1 blockchain Kadena (KDA) because the second crypto venture to fold this week amid a wave of setbacks throughout the decentralized finance (DeFi) sector.

Bunni Groups says the DEX will wind up Operations because it lacks the Capital for a Full Restoration

In a Wednesday X put up, the Bunni crew notified that they don’t have sufficient sources to fund a safe relaunch. The exploit, which occurred in September 2025, fully halted the DEX’s progress, and the crew must pay 6-7 figures in audits and monitoring bills alone to restart operations, which is capital they don’t have.

The crew famous that it could take months of enterprise improvement efforts to get well from the setback and thus determined that the best choice economically was to close down the platform.

Good day everybody, it’s with saddened hearts that we announce the shutdown of Bunni.

The latest exploit has pressured Bunni’s progress to a halt, and with the intention to securely relaunch we would must pay 6-7 figures in audit & monitoring bills alone – requiring capital that we merely do not…

— Bunni (@bunni_xyz) October 23, 2025

Bunni suffered a large hack on September 2, which drained $8.4 million in property from its Ethereum ($2.4 million) and Unichain ($6 million) liquidity swimming pools. A autopsy report revealed that attackers had exploited a rounding error within the platform’s Ethereum sensible contract withdrawal operate.

The report acknowledged that the hack affected two swimming pools – the weETH/ETH pair on Unichain and the USDC/USDT pair on Ethereum. The basis concern was with the rounding path inside the protocol’s codebase that up to date idle balances throughout withdrawals.

Behind The Bunni DEX Flash Mortgage Exploit

Apparently, the attacker capitalized on this deadly flaw and launched a flash mortgage assault to steal funds by manipulating pool costs and liquidity. 

They first borrowed $3 million in USDT on Ethereum through a flash mortgage and carried out a sequence of swaps to govern the value. This decreased the out there USDC to only 28 wei – the smallest denomination of Ether, valued at 0.000000000000000028 ETH, nugatory in U.S. greenback phrases.

The hacker then exploited the platform’s rounding errors by way of 44 small withdrawals, additional draining the USDC stability and disproportionately dropping the USDC/USDT pool’s whole liquidity. For his or her ultimate trick, they executed a big swap to inflate the token’s worth after which carried out a reverse swap on the manipulated worth.

Bunni paused all operations, together with deposits, swaps, and withdrawals, instantly after being notified of the hack. It resumed simply withdrawals throughout all networks a day later, after a fork take a look at carried out by blockchain safety agency Cydrin flagged the alternate as secure.

Roughly half of the property stolen from Unchain have been swapped to ETH earlier than bridging to the Ethereum mainnet in a sequence of 100 transfers through Throughout Protocol. The Bunni crew traced the stolen funds to 2 wallets however couldn’t establish the attacker because the tokens have been funneled by way of the crypto mixer Twister Money.

On the time, Bunni mentioned it was engaged on creating its testing framework to revive operations. Nevertheless, the monetary scale of its losses grew to become too giant to get well from, ensuing within the determination to close down.

Customers Can Withdraw Funds from the Official Web site, whereas BUNNI, LIT, and veBUNNI Holders will obtain Treasury Funds

With the alternate ceasing operations, Bunni has introduced that its customers shall be allowed to withdraw their property from the official web site till additional discover. The crew plans to distribute its remaining treasury property to those that maintain BUNNI, LIT, and veBUNNI tokens after conducting a snapshot of eligible wallets, pending authorized validation. They confirmed that core crew members shall be excluded from the distribution occasion.

Bunni, a DEX constructed on Uniswap v4, aimed to optimize returns for liquidity suppliers by way of a singular system generally known as the Liquidity Distribution Operate. Previous to the hack, the alternate had seen explosive progress, with whole worth locked (TVL) on the platform leaping from $2.23 million in June 2025 to just about $80 million by mid-August, in accordance with DefiLlama knowledge.

Bunni to Open-Supply its Applied sciences for DeFi Adoption

Regardless of shutting down, Bunni has determined to open-source its V2 sensible contracts by shifting them from a Enterprise Supply License (BSL) to the much less restrictive MIT license, permitting builders to undertake its revolutionary applied sciences, together with liquidity distribution, surge charges, and autonomous rebalancing, into different DeFi initiatives with none authorized crimson tape.

This determination drew reward from the broader crypto neighborhood for preserving the alternate’s technical contributions to the business.

The Bunni crew mentioned they’re cooperating with legislation enforcement to get well the stolen funds. They’ve supplied the attacker 10% of the loot as a bounty for returning the rest, whereas additionally working with centralized exchanges to freeze accounts linked to the hacker’s pockets.

Additionally Learn: Kadena Shut Down: Traders Recount Large Losses as $KDA Group Ceases Operations Citing “Market Circumstances”