What is Pancake Bunny?
Pancake Bunny is a decentralized finance yield aggregator and optimizer for Binance Smart Chain. It will also soon launch on Polygon (MATIC). The outstanding pros of this protocol is that it automatically aggregates profits from clients’ investments to optimize profits. If Yearn Finance (YFI) is the leading aggregator on Ethereum, Pancake Bunny also wants to follow this path to become the leading protocol on Binance Smart Chain. Pancake Bunny is currently using PancakeSwap (CAKE) as its Yield Farming platform.
The reason Pancake Bunny chooses PancakeSwap is because this exchange is no stranger to BSC users. PancakeSwap is also easy to use so that users can easily make investments while reaping the benefits of auto compounding. Another plus point is that Pancake Bunny is audited by Hexlant, Haechi Labs, Theori and PeckShield. Audited projects, of course, will receive more trust and prestige than projects that have not been audited.
Outstanding features of Pancake Bunny
#1. Vault
Vault allows investors to stake their tokens into a smart contract to get APY (annual percentage yield) from the pool. Auto Compounding Farm is where you can reap the benefits of automating compounding and the high APY. In addition, the platform will deduct 30% performance free to give users, so users can get free money.
Vaults leverage the auto-compounding mechanics where compound interest will automatically be added to users’ accounts. Furthermore, the transactions will be updated daily to ease users’ effort when they need to re-deposit their funds.
#2. Zap
Via Zap, users can directly switch from a single asset (BNB or BUNNY) to an LP Token without having to go to pancake swap and switch out different assets. There is no additional fee for this zap, this tool was built for the convenience of users.
#3. Governance
BUNNY holders can control the ecosystem and receive the majority of farm performance fee profits. In order to claim these profits, BUNNY holders stake their tokens in the BUNNY Governance Pool. Profits are sent to this pool in the form of BNB rewards. The amount of profits you receive is determined by the number of BUNNY tokens you stake (% of the pool) you own. Pancake Bunny will soon launch a new governance token to support activities in the Pancake Bunny community.
#4 Fee structure
Withdrawal fee
There is a 0.5% withdrawal fee from Farms only if the withdrawal occurs within 72 hours of deposit. This fee is to maintain the smooth flow of the ecosystem and to prevent possible exploitation from individuals with bad intentions.
Performance fee
Besides withdrawal fee, Pancake Bunny users also need to be aware of the performance fee. When a user chooses to “Claim profits” from a pool, a performance fee of 30% will be collected to reward BUNNY stakeholders. In return, all pools are rewarded with BUNNY tokens.
Pros and Cons of Pancake Bunny
Pros
Pancake Bunny is a popular decentralized finance yield optimizer for BSC. The reinvest and Auto Compounding Farm features help users promote compound interest from available assets. Staking assets are suitable for all investors, from small to large ones. Pools with many popular assets on BSC offer a wide range of options for users.
In addition, Pancake Bunny’s auto-compounding mechanics help users save gas fees. And Zap, the feature allows users to directly switch from a single asset (BNB or BUNNY) to an LP Token without having to go to pancake swap and switch out different assets.
Cons
The most obvious downside is the transaction free on Pancake Bunny – 0.5% – which is relatively higher than other protocols. This makes Pancake Bunny somewhat lose its advantage over protocols with transaction fees below 0.3%.
Another piece of information that may make investors worry is that Pancake Bunny was hacked for $200M in 2021. The attack targeted the BUNNY/BNB trading pair of the protocol. At that time, BUNNY price pumped from $150 to $240 but just 30 minutes later, BUNNY plummeted to zero.
Development team and Partners
Development team
As of now, Pancake Bunny has not made any public announcements about the project’s development team or leadership. The community only knows that the development team is named MOUND.
Investors and Partners
In April 2021, the project was invested $1.6M by Binance Labs. There are also other investors like IDEO Colab, SparkLabs, Andrew Lee, etc.
BUNNY Token
Token name: Pancake Bunny Token
Ticket: BUNNY
Blockchain: BSC
Token Standard: BEP-20
Token type: Governance, utilities
Smart contract: 0xc9849e6fdb743d08faee3e34dd2d1bc69ea11a51
Total Supply: According to the document from Pancake Bunny, BUNNY does not limit the total supply
Exchange: Users can buy BUNNY on DEX PancakeSwap, MEXC, and Hotbit.
BUNNY holders can stake BUNNY to receive APY. BUNNY holders are also rewarded tokens from 30% of the performance fee when participating in staking BUNNY. BUNNY holders are governance members who can get most of the profit from farm performance fee or stake tokens in the BUNNY Governance Pool and earn rewards. Profits are sent to this pool in the form of BNB rewards. The amount of profits you receive is determined by the number of BUNNY tokens you have staked.
In conclusion
Pancake Bunny is a decentralized finance yield aggregator and optimizer built on Binance Smart Chain. Although PancakeBunny has been hacked for $ 200 million, the project has its own strengths for investors to consider.