The group of developers that built Bunny Finance and Qubit has reportedly made a decision to scrap the protocol and turn it into a decentralized autonomous organization (DAO).

Specifically revealed via a post on Medium on February 11th, the Bunny Finance team reportedly disclosed that the vulnerability attack on Qubit which led to a $80 million financial hemorrhage has reportedly left the team unable to function at standard capability. 

Consequently, the entity reportedly made the decision of disbanding the protocol and entrusted the community with control. 

The Qubit bridge called X-bridge facilitated tokens swaps from Ethereum to Binance Smart Chain (BSC). The attacker was reportedly able to take advantage of a “logical error” in the X-Bridge smart contract, which made it possible for them to withdraw tokens on BSC without depositing any on Ethereum.

The hacker reportedly left the protocol carrying 77,162 Qubit xETH (qXETH), with the estimated value equivalent to $185 million, and used it as collateral to borrow several assets from the lending pools worth $80 million. 

The borrowed tokens included 15,688 Wrapped Ether (wETH) valuing at $37.6 million, 767 Bitcoin BEP2 (BTCB) ($28.5 million), $9.5 million worth of stablecoins and $5 million worth of PancakeSwap (CAKE), Pancake Bunny (BUNNY) and MDEX (MDX) tokens.

The official announcement further revealed that from now on, the community will reportedly carry the responsibility for making large-scale decisions, including upgrading contracts and adjusting the fee structure. 

To be able to turn the protocol into a DAO, the development team has reportedly terminated operations on vaults on Bunny, which will stop minting the native token. 

The team further terminated operations of leveraged Farming Vaults and Single Asset Vaults on Qubit that were used to borrow assets.