What to Know:
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Bunni DEX lost $8.4 million after attackers exploited the LDF curve in its Uniswap v4 hook system.
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The team quickly paused contracts and began investigations, aiming to prevent further damage and recover user confidence.
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Crypto hacks are on the rise, with WazirX losing $230M and Bybit $275M earlier this year, showing the urgent need for stronger security in DeFi.
Bunni, a decentralized exchange that runs on top of Uniswap v4, has been hit by a major security breach that cost the company more than $8.4 million. The incident has once again made people worry about how safe new DeFi platforms are and how targeted hacks are becoming more common in the crypto world.
What Happened
A security alert said that Bunni was attacked on both Ethereum and UniChain, with early reports showing strange transactions worth about $2.3 million. The latest report says, the estimated total losses has grown to more than $8.4 million.
In an official statement, the Bunni team confirmed that the protocol had been hit by a security vulnerability. As a precaution, the team has suspended smart contract functions across all networks while they investigate the incident. “We are actively working to understand the root cause and will provide updates as soon as possible,” the team said.
How the Exploit Worked
A Twitter user who analyzed the attack explained that the issue lies in Bunni’s unique design. Bunni uses its own system called the Liquidity Distribution Function (LDF) instead of Uniswap v4’s standard setup.
Here’s a breakdown of how the attacker took advantage of it:
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Bunni checks after each trade whether its LDF curve has changed.
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If it has, the system recalculates liquidity and rebalances token ratios.
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The exploiter discovered they could manipulate this curve by making trades of very precise sizes.
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These carefully crafted trades caused the system to miscalculate how much each liquidity provider should own.
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By repeating this process, the hacker was able to withdraw more tokens than allowed, draining funds from the pool.
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Finally, the attacker executed a couple of swap steps to pull the stolen tokens out.
In short, the exploit wasn’t about breaking Uniswap itself it was about precision errors in Bunni’s own “hook” system.
Slow but Decisive Response
Community members pointed out that Bunni’s team was slow to acknowledge the problem. But once confirmed, they quickly paused the protocol to prevent further damage. Some analysts said that the $8.4 million loss is bad, but it could have been worse if the exploit had lasted longer.
Security firm BlockSec, which first flagged suspicious activity, said the incident shows the importance of real-time monitoring in DeFi.
A Growing Pattern of Crypto Hacks
Sadly, things like this are happening more and more often in the crypto space. WazirX lost about $230 million when it was hacked earlier this year, and Bybit lost $275 million. In some cases, attackers took advantage of flaws in smart contracts, while in others, they took advantage of flaws in exchange infrastructure or user wallets.
These attacks that keep happening show how weak DeFi systems are and how badly we need better auditing, faster responses to incidents, and more thorough testing before protocols go live. People still praise DeFi for being innovative, open, and efficient, but it is also becoming a popular place for highly skilled cybercriminals to hunt.
What’s Next
The Bunni team hasn’t said anything and is continuing their investigation. People are waiting to find out if they will be paid back for the money they lost and if the project will start up again after the security hole is fixed.
At the same time, the larger crypto community is once again asking for stricter audits, better monitoring tools, and higher security standards across the board. As DeFi grows, it becomes more important to keep users safe from attacks that get more and more advanced.
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