Bunny and Qubit turns to DAO following $80-million bug exploit

The event workforce behind Bunny Finance and Qubit has determined to disband the protocol and switch it right into a decentralized autonomous organization (DAO).

In an official medium post printed on Friday, the Bunny Finance workforce introduced that the exploit on Qubit that resulted in $80 million value of loss has made it not possible for the workforce to function at full scale. Thus, it has determined to disband the protocols and provides authority to the group.

As reported earlier by Cointelegraph, the Qubit bridge known as X-bridge facilitated tokens swaps from Ethereum to Binance Good Chain (BSC). The hacker behind the assault managed to exploit a “logical error” in the X-Bridge smart contract that allowed them to withdraw tokens on BSC with out depositing any on Ethereum.

pic.twitter.com/G1WOMglVUU

— Qubit Finance (@QubitFin) January 28, 2022

The hacker managed to steal 77,162 Qubit xETH (qXETH) value $185 million and used it as collateral to borrow a number of property from the lending swimming pools value $80 million. The borrowed tokens included 15,688 Wrapped Ether (wETH) value $37.6 million, 767 Bitcoin BEP2 (BTCB) ($28.5 million), $9.5 million value of stablecoins and $5 million value of PancakeSwap (CAKE), Pancake Bunny (BUNNY) and MDEX (MDX) tokens.

Associated: Wormhole token bridge loses $321M in largest hack so far in 2022

The official announcement famous that transferring ahead, the group will likely be in control of main decision-making, together with upgrading contracts and altering the charge construction. With a view to change the protocols to a DAO, the event workforce has shut down vaults on Bunny, which can not mint the native token. The workforce can also be shutting down leveraged Farming Vaults and Single Asset Vaults on Qubit that had been used to borrow property.

The event workforce has additionally determined to discontinue main charge buildings, barring unstaking and compounding charges. The workforce will even launch a brand new market on Qubit and eliminate the previous mannequin that was hacked. All workforce tokens will likely be locked in a group good contract, and income from the contract can be utilized as a compensation pool. The prevailing members of the workforce would take part as a member of the DAO.