PancakeBunny Yield Farming Aggregator Review

PancakeBunny is a decentralized finance (DeFi) yield aggregator and optimizer for the BNB Chain, which is used for PancakeSwap (CAKE)
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PancakeBunny Yield Farming Aggregator Review

PancakeBunny Yield Farming Aggregator Review

What Is PancakeBunny?

PancakeBunny is a decentralized finance (DeFi) yield aggregator and optimizer for the BNB Chain, which is used for PancakeSwap (CAKE) and Venus (XVS), and will soon launch on Polygon (MATIC). The PancakeBunny protocol gives farmers the opportunity to reap the benefits of auto compounding.

PancakeBunny was initially formed on BNB Chain in October 2020. The team launched a yield optimization protocol to simplify the yield farming process for PancakeSwap users. PancakeBunny utilizes vaults (smart contracts) to achieve this. The developers have remained anonymous and while activity has slowed, the project is still functioning. 

This comes despite facing increasing stumbling blocks in the way of hacks and exploits. This has led to a slowing down of communications with recent months seeing few tweets being sent out to its users and followers. 

How the Project is Employed

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The PancakeBunny platform allows for auto compounding and yield optimization on all PancakeSwap LP pairs and $CAKE staking. As an extra incentive, users can earn $BUNNY tokens on all of the available vaults (that you provided liquidity for).

There are three strategies in which users can choose to invest. $CAKE maximizer vault allows users to compound $CAKE and earn $BUNNY. Another option is to compound LP tokens using the protocols vault strategies. The vaults automate the entire yield farming process while simultaneously distributing $BUNNY tokens as a bonus. Finally, the Bunny Boost is where users can stake $BUNNY or BUNNY/BNB LP to earn more $BUNNY tokens.

PancakeBunny Progression Hacked

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With the long-rumored listing on Binance not having materialized there is the sense that the project has begun to stagnate. What has contributed to this downturn in sentiment is the project’s perceived vulnerability to exploits. 

In May of 2021 PancakeBunny was one of several BNB Chain DeFi projects targeted in a series of hacks. A loophole related to reward minting in the yield aggregator was exploited to mint 7,000,000 BUNNY tokens, leading to a $45 million loss. In the aftermath several other projects, including AutoShark, Merlin Labs and PancakeHunny suffered similarly. 

These issues have had a marked impact on the token price. With $BUNNY previously trading at above $460 in April of 2021, the fall has been dramatic to $0.43 at the time of writing according to CoinMarketCap. Whether the project will be able to recover from this remains to be seen but there has been a concerted effort to keep developing- which is always an important sign.

Signs of Development

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The team initially began by working to reestablish belief in their product in the summer of 2021. These initial efforts to communicate and console their community were then backed up by important buy-back and burn efforts deployed by PancakeBunny. 

The latter part of 2021 saw the organization begin to hone in an aspect of its project that remained positive and innovative, its vaults. The team launched vaults on Mound Finance, and refocused on offering their users important value and utility. The hope had been that this would go on to create some positive price action, but as the market has deteriorated this has not quite managed to take effect. 

As a result of these efforts at the tail-end of 2021 the project impacted user sentiment to the point where it could bring about a celebration of its anniversary and in turn commemorate the important developments that had taken place throughout PancakeBunny’s lifespan.

Ways to Earn On Pancake Bunny

The various vaults offering APY’s (annual percentage yield) have seen opportunities decrease markedly for its users with APY numbers previously varying from 70% up to 2,300%, and now at around 3.4% on its currency offering.  Users can choose from the following pairs or single token vaults:

Bunny Boost (earns $BUNNY):

BUNNY/BNB, $BUNNY

$CAKE Maximizer (earns $CAKE and $BUNNY):

CAKE/BNB, BTCB/BNB, ETH/BNB, BUSD/BNB, USDT/BNB, VAI/BUSD, USDT/BUSD, CAKE

Normal Compounding Vaults (grows your LP and earns $BUNNY):

CAKE/BNB, BTCB/BNB, ETH/BNB, BUSD/BNB, USDT/BNB, VAI/BUSD, USDT/BUSD

Cross-Chain Capabilities

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PancakeBunny’s platform had previously set the course for cross-chain farming (Ethereum – BNB Chain), but it appears that its performance in recent months has seen interest decrease in the offering..

The feature would allow Ethereum users to dual farm, utilizing UniSwap liquidity and farming PancakeSwap. This bridge farm construction is an easy way to let Ethereum Users reap benefits from the BNB Chain without them interacting with BNB Chain themselves.

Although setting up a wallet for BNB Chain is not rocket science, this feature could help people in getting more yield from their current holdings in Ethereum. As bridging assets is still not very easy to do, many have been hesitant to make the switch from Ethereum to BNB Chain.

The development of the cross-chain farm will serve those people very well, getting yield from PancakeSwap on the Ethereum Network, amazing!

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Future in Balance

With so much having taken place for PancakeBunny in 2021, this year could be make or break for the team and they will be more than wary of this. There will be a large percentage of users that have suffered incredibly from the exploits and ensuing price drop, but the project has not yet decided to call it a day. 

The coming year could be the time the project makes a decision in terms of its immediate future, whether this materializes in prospective innovation or the curtailing of a difficult journey, We will be paying close attention. 

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