The birth of decentralized finance has created a new dimension in which money sort of doesn't make sense anymore – not in a traditional sense, anyway. How is it possible for you to earn more than ten-fold returns that easily, and how is it that you could potentially lose all of that in just as little time? So many questions, but we continue to cherish it as to how it gives us a peek into the future of the financial system as we know it today. As proof of that, we get to our PancakeBunny review.
With so much money at play, managing both your risk and returns is an already tricky balancing act made harder when you're traversing the wild world of DeFi. Plus, you certainly don't want to be leaving any money at the table. PancakeBunny wants to make this life easier for you, having built a one-stop shop for all things yield farming to harvest some of the most lucrative profits this side of decentralized finance. Read along our PancakeBunny review to find out more…
What Is PancakeBunny?
Conceived to empower traders and investors on the rapidly growing and popular PancakeSwap decentralized exchange built on the Binance Smart Chain, PancakeBunny was created after noticing a gap in the market for yield aggregators running on the aforementioned BSC. Intertwined with PancakeSwap, PancakeBunny wants to help users – or more specifically, yield farmers – to better monetize their assets with profitable yield farming strategies and auto compounding function.
Unfortunately, disaster had struck the young project as we were writing this PancakeBunny review, as a flash loan exploit was made against them. In the wake of the attack, the community initially claimed that it had cost them $1-billion, although later metrics showed that the hacker made away with $200-million that was drained from its yield farms. This has been one of the most economically devastating malicious attacks made against DeFi-focused protocols on the Binance Smart Chain (BSC).
How Do PancakeBunny's Bunny Farms Work?
Before we get further into our PancakeBunny review, we should try to understand a bit more about yield farming itself. Sometimes referred to as ‘yield aggregating' or ‘liquidity mining,' yield farming is an investment concept borne with DeFi, which essentially enables you to lend out cryptocurrencies to other users through the use of smart contracts, and in return, you get a portion of the fees as a reward. In that case, that is how liquidity providers earn huge returns on decentralized exchanges.
However, yield farming is more complex than a singular liquidity pool that you might find on those DEXes. Yield aggregators like PancakeBunny, for instance, employ complex strategies to keep moving your assets and rotate them between the most lucrative pools they could find across one or more decentralized exchanges. In short, they are trying to farm for the best yields they could find, aggregate them, and then present them to you in a single platform to pool your tokens into.
As of this PancakeBunny review, most of their farms are on PancakeSwap, and it employs several unique features such as automatically compounding your returns and reinvesting them back into the farm. This automated process is valued quite highly, as manually compounding your yields is not only complicated, as it requires you to go through the entire process of pooling assets and timing it properly, but also costly, as it counts as a separate transaction, and thus incurs gas fees.
What Could You Do With PancakeBunny?
At the time of starting this PancakeBunny review, there is a recorded $2.4-billion in total liquidity locked inside of its farms (or pools), though this has now reduced to around $1.2-billion following the aforementioned flash loan exploit.
It's likely that a lot of users who pooled into its farms may have pulled their money out. Right now, there are a total of 23 different liquidity pools that PancakeBunny has found to offer the best yields. Some of them, in fact, offer yields upwards of 100% or even 300%.
The most popular farm that we've found here is a CAKE pool, with auto-compounding (as is the default) and more than $930,000,000 in total liquidity. As for returns, a BUNNY farm is offering a projected yearly APY yield of over 388%. However, our earlier data there has been nullified following the flash loan attack. Right now, the aforementioned CAKE farm has a projected return of around 124%, while the BUNNY farm we noted earlier rose its yields to a whopping 2,597%.
However, it's worth mentioning that high yields are a sign of high volatility in the prices of the underlying asset. With a fairly large variety of farms to pick from, PancakeBunny is diverse enough that you can choose pools that best suit your desire for wanting more or less risk and with the proportional sum in returns. Aside from that, PancakeBunny also has Zap, where you can convert between tokens using PancakeSwap with no extra fees.
What Are PancakeBunny's BUNNY Cryptocurrency Tokens?
BUNNY tokens are the native cryptocurrency of the PancakeSwap protocol. Mainly, it is used as a governance token with which BUNNY represents shares that allow the community to manage the ecosystem. Alternatively, stakers and holders of BUNNY tokens are also entitled to earn a majority of the farm performance fee profits. While writing this PancakeBunny review, we have found that a total of more than $85,000,000 in monthly profits have been returned to BUNNY holders.
This is mostly thanks to that farm performance fee. When a user claims profits from a particular pool (or farm), 70% of the profits are paid out in the farm's unique LP token, which can then be redeemed back for the underlying cryptocurrencies in that pool. Meanwhile, the remaining 30% in profit is paid back in BUNNY if you use PancakeBunny, where the amount is then calculated in the dollar ($) value of Binance Coin (BNB) tokens. For each BNB, the user gets three BUNNY tokens.
A performance fee is set for every pool, where claiming profits will incur a 30% fee that will reward all BUNNY holders. Although this might seem high, users do get a lot of it back just by holding BUNNY. For every BNB worth of fees collected, five BUNNY tokens are rewarded.
To ensure that the users don't exploit the yield farms, PancakeBunny has implemented a 0.5% withdrawal fee from its pools, but only if the withdrawal happens less than 72 hours after the initial deposit was made.
What Are the Tokenomics Around PancakeBunny's BUNNY Tokens?
Interestingly, PancakeBunny's BUNNY tokens don't have a set maximum token supply. Instead, it mints new BUNNY tokens every time based on the BNB value of profit claims or for performance fees, using smart contracts.
BNB is in itself a scarce token, although PancakeBunny – as they are a fairly new project – may soon implement a token cap or burning mechanism to prevent excess inflation. Since it initially started trading earlier in 2021, the price of BUNNY has soared.
As of writing this PancakeBunny review, the price of one BUNNY is around $143.93. This marks a fairly massive gain of 3,471.76% from its all-time lows just a few months ago when it was priced at around $4.00. Once again, the value of those BUNNY tokens took a huge hit just a few hours later.
As the attack exploited the price of BUNNY, it later dropped by a painful 96%, and BUNNY had actually bottomed to $0, before later trading under $10 for a few more hours.
Now, as we publish this PancakeBunny review, the price has gone back up to $36.13 (May 20th, 2021). Still, the exploit had a terrible impact on the overall value of BUNNY and its ecosystem, as its market capitalization dropped from around $70,000,000 when we started writing to just $18,433,721 as we're wrapping up. Moreover, its market cap ranking dropped from the high #300s to #776. We can likely expect a lot of price volatility in the days, weeks, and months to come as PancakeBunny tries to recover.
What Do PancakeBunny's Future Roadmap Updates Look Like?
Currently, PancakeBunny is still a very young protocol. Still, they have committed to a very ambitious roadmap timeline for 2021. The biggest of these updates should be native cross-chain support to bridge between farms on the Binance Smart Chain (BSC) and the Ethereum blockchain. Although BSC is gaining in adoption and popularity, much of DeFi – and thus liquidity and yields – are mostly hosted on Ethereum, hence why PancakeBunny is keen to expand both ways.
This cross-chain support should allow users on BSC to farm for yields on Ethereum and vice versa as currently, moving across blockchains manually is tedious and costly. Another key update includes expanding into more farms, such as moving beyond PancakeSwap and onto other BSC-based protocols.
In Q3 of 2021, we'll get to see a whole load of new features is implemented, such as new strategies specially designed for those users seeking high risk and high returns.
Arbitraging opportunities will be introduced between BSC and Ethereum as another avenue for users to profit with, as well as native asset management. Later in Q4 of 2021, PancakeBunny is even planning to make its own mobile app.
PancakeBunny Review – Conclusion
We can't fairly summarise our PancakeBunny review without highlighting at least one downside. In the case of PancakeBunny, we do wonder how they might fare against other excellent yield aggregators out there.
Although the farms that they have now are incredibly profitable and no doubt an attractive proposition for many would-be users, its nascent project has to go up against other more experienced platforms. Plus, this flash loan exploit, while certainly not a new phenomenon, doesn't help things.
At face value, at least, there are still some things to like. Being able to automatically compound your profits and reinvest without having to plan and think them through is a valuable nice-to-have. To win at DeFi requires speed and timing, as getting in even that tiny bit late can cost you both in potential profits and extra gas fees.
In short, we still need some time to see when and how PancakeBunny might accomplish the ultimate goal of cross-chain support. But until then, this is one you might be keen to take a look at.
- Ease of Use
- Project Values
- Tokenomics Model
- Long Term Sustainability
- Offers automatic compounding and reinvesting profits for all yield farms by default.
- A lot of active pools are paying out very high (estimated) yearly returns.
- Generous returns for BUNNY token holders, with more than $85-million in monthly returns (at the time of writing).
- The user interface is very easy to use and understand.
- Commitment to cross-chain support between BSC and Ethereum is very promising.
- Potential competition from other established yield aggregators.
- Flash loan exploit might expose further security flaws and may deter potential users.