$1 900 000 USD

OCTOBER 2021

GLOBAL

PANCAKEHUNNY

DESCRIPTION OF EVENTS

"PancakeHunny is a DeFi yield aggregator that offers users the most convenient way to farm their crops. It allows them to easily find the best yield farms and maximize their returns." "PancakeHunny aims to provide users the easiest way to join the bandwagon of the DeFi world, built on top of PancakeSwap, giving you the tastiest CAKEs topped with HUNNY. We support the underlying DeFi technology and ecosystem to compound user yields through the Binance Smart Chain (BSC). We have seen a huge surge in DeFi activity in 2020 since the rise of Yield Aggregator projects on different blockchain networks with existing protocols such as MakerDAO, Aave, Compound, and etc. As a Yield Aggregator with a vital role in the yield farming economy, we are leveraging different DeFi protocols and strategies to maximize user profits."

 

"PancakeHunny’s smart contracts are audited by Certik, one of the leading blockchain security companies in the industry."

 

"PancakeHunny suffered a flash loan attack that targeted the Hunny TUSD Vault." "On 20 October 2021, at 0920 UTC. A smart contract was created to exploit the Hunny TUSD vault. The Contract was subsequently executed 26 times." "The hacked transactions included 513 transfers, and Gas consumption reached 19 million, of which a large number of transfers were related to Alpaca tokens."

 

"This is the sequence of events. Obtained a 53.25 BTC Flashloan from Cream Finance. Used 53.25 BTC to get a 2,717,107 TUSD Loan from Venus. Manipulated the price of BNB/TUSD Pool on PancakeSwap. Used 50 different Wallet Addresses to Deposit 38,250 TUSD into HUNNY TUSD Vault. Redeemed 2842.16TUSD and Minted 12,020.40 Hunny. Sold Minted Hunny for 7.78 WBNB. Steps Repeated for 50 wallets 26 times."

 

"The hack is made possible due to a profit inflation bug, which converts the relatively small amount of harvested $ALPACA to large amount of $TUSD for staking. These converted TUSDs are then counted as profit, now inflated to mint large amount of $HUNNY!"

 

"PeckShield also detailed how the initial funds were channeled through Typhoon Network and Tornado Cash, and resulting gains were tunneled via CelerNetwork, Anyswap, and Synapse Protocol."

 

"We have stopped minting HUNNY for single asset vaults like FIL and TUSD Vaults with low liquidity on PancakeSwap. We have taken immediate action to protect our users from any further potential issues that could arise." "Funds in Hives are all SAFU. We have taken immediate action to protect our users from any further potential issues that could arise." "HUNNY tokens fell by about 70% in a short time."

 

"Pancake Hunny has identified the issue and will change the rooting to prevent the effects of price manipulation on LP pools." "We have identified the issue and we will change our routing to higher liquidity pools to prevent the aftereffects of price manipulation of LP pools. We will inform our community of a more detailed moving forward plan within 24 hours. Stay tuned."

 

"1.5 million $HUNNY (Dev Fund) will be distributed across users’ HunnyPlay account daily, over a span of 90 days based on the snapshot of your staked $HUNNY before the incident. We will have an accurate count of $HUNNY possessed by all HUNNY Holders from our snapshot. HUNNY Holders must have had HUNNY at the time of the incident and that amount is not sold until now."

 

"Daily payouts to compensation in your HunnyPlay account. You can see your available HUNNY amount to claim. When you claim, HUNNY token amount should be added to your HunnyPlay account balance." "To be able to claim your Hunny, you can simply connect your wallet to hunnyplay.com and subscribe to the compensation pool. Details will be announced before the subscription period starts. Do take note that you are free to withdraw $HUNNY from HunnyPlay or play with the credits."

 

"We will engage more external audits and security consultants for our current and future vaults from time to time as more audit reports can reveal other security weaknesses that we might overlook within our protocol." "Flash loan attacks are executed through smart contracts. Hunny will implement a stop on all external smart contracts to interact with Hunny’s contract which helps us mitigate the risk of flash loan attack with the same loophole."

 

Explore This Case Further On Our Wiki

PancakeHunny is a yield farm aggregator, which suffered from a flash loan exploit involving price manipulation of tokens with lower liquidity. The attacker was able to make off with $1.9m. While none of the funds were recovered, Hunny is distributing funds to compensate those users who were affected.

Sources And Further Reading

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