Qubit and Bunny turn to DAO after they got exploited via bug out of $80 million and the exploit happened on the Ethereum BSC Bridge used $185 million as collateral to steal $80 million worth of tokens from lending pools so let’s read furhter in our latest Ethereum news.
The development team behind Qubit and Bunny Finance decided to disband the protocol and turn to a decentralized autonomous organization. In an official medium post, the Bunny finance team announced that the exploit on Qubit resulted in $80 million worth of loss which made it quite hard for the team to operate at full scale which is why they decided to disband the protocol and give authority to the community.
— Qubit Finance (@QubitFin) January 28, 2022
The Qubit bridge called X-Bridge facilitated token swaps from ETH to Binance Smart Chain where the hacker behind the attack managed to exploit a logical error in the bridge smart contract which allowed them to withdraw the tokens on BSC without depositing any of Ethereum. The hacker stole qXETH tokens worth $185 million and used them as collateral to borrow assets from lending pools worth $80 million. The borrowed tokens included 15,688 Wrapped ETH worth $37,6 million, $9.5 million in stablecoins, $5 million worth of PancakeSwap, and $28.5 million of BTCB.
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The official announcement noted that going forward, the community will be in charge of major decision-making like upgrading contracts and altering fee structures but in order to change the protocols to a DAO, the development team shut down vaults on Bunny that will no longer mint the native token. The team is shutting down leveraged Farming Vaults and Single Asset Vaults on Qubit which we’re used to borrowing assets.
The development team decided to discontinue the fee structure and barred unstacking and compound fees. The team will launch a new market on Qubit as well and will get rid of the old model which was hacked. All team tokens will be locked in the community smart contract and the profits from the contract will be utilized as a compensation pool.
As recently reported, Binance Smart Chain-based Qubit Finance DEFI protocol was exploited for over $80 million by attackers and The addresses connected to the attack show 206,809 Binance coins got drained from the Qbridge protocol and now the assets are worth over $80 million at current prices according to the reports by PeckShield.
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