DeFi protocols Bunny Finance and Qubit announced plans of “restructuring.” The joint statement revealed that the two projects, governed by the development team until recently, will now be managed by a decentralized autonomous organization (DAO).
Restructuring, Not Disbanding
According to the official blog post, the community will be granted all the relevant authority once the transition to DAO is completed. Among other tasks, the members will have the power to upgrade contracts, alter fee structure, etc.
Bunny Finance also confirmed that the team will not “disband,” and they will continue compensating the victims for the losses. The DeFi yield farming aggregator also notified that they will keep tracking the exploiter.
Changing the protocol to a DAO will also include revision of the Bunny fee structure and stopping the protocol’s vaults from minting BUNNY tokens. Besides, the leveraged farming vaults and single asset vaults operated by borrowing assets from Qubit have already been ceased.
BSC-based DeFi project, Qubit also issued a brief statement, revealing that the team will reduce the number of its employees but clarified that it is not a dissolution. The original members of the MOUND team, composed of developers and entrepreneurs, will continue to develop the compensation project and trace the exploiter.
The blog post also stated,
“All of the team’s tokens will be locked in the smart contracts owned by our community and the total profit generated by this contract will move to the compensation pool.”
This essentially means that the fees and reserves of the protocol will be allocated to existing holders while all the relevant users will be compensated. Additional profits will not be shared with the team anymore.
The Hack
X-Bridge, the cross-chain bridge of Qubit Finance, was exploited recently, resulting in a loss of $80 million worth of BNB tokens. For the uninitiated, the X-Bridge facilitates swapping tokens from the Ethereum blockchain to Binance Smart Chain, meaning when a user receives a BSC compatible BEP-20 token upon depositing an ERC-20 token to the bridge.
The blockchain security firm CertiK revealed that an error in the X-Bridge’s smart contract code allowed the bad actor(s) to withdraw tokens on BSC despite no tokens being deposited on Ethereum.