After Losing $80 Million, Qubit Surrenders Authority to Community DAO

Witnessing one of the biggest exploits of the year, the PancakeBunny Finance as well as the Qubit Finance development team announced their decision to turn all control to the community. The losses that ensued owing to the exploit also led to Team Mound taking a severe hit.

Qubit, PancakeBunny Goes DAO

About two weeks ago FXEmpire reported on the Qubit exploit which enabled the hacker to mint unlimited xETH to borrow on the Binance Smart Chain.

Before the team could manage to prevent further exploitation of the pool funds, the hacker managed to take as much as 206,809 BNB which translates to about $86 million.

Although Qubit Finance did offer a bounty to the hacker, clearly the hacker did not seem to be interested in giving up over $80 million.

As a result the team today announced that the development team will no longer be leading the team. As soon as the protocol’s governance is changed to DAO, the community will be in control of authorizing and deciding on the contract upgrades, fee structure alteration, and other decisions pertaining to the protocol.

pic.twitter.com/7eo9NJIDWR

— Qubit Finance (@QubitFin) February 11, 2022

In the announcement the team further stated:

“We regret to inform you that we are unable to carry on the proposed roadmap…Due to this terrible incident, it became impossible to sustain the scaled development team.”

However, the team will be making some changes before the protocol transitions into a DAO. first of which is ceasing BUNNY emissions where the vaults on the PancakeBunny will no longer mint its tokens. Secondly, the team discontinued a majority of its fees owing to restructuring revision.

And the team also stated that they will be launching new markets on Qubit Finance, removing the hacked markets in the process.

In a few final words, the team announced:

“All of the team’s tokens will be locked in the smart contracts owned by our community and the total profit generated by this contract will move to the compensation pool. This means that the entire protocol fees and reserves will be distributed to existing holders and relevant users to be compensated, and any further profits will no longer be shared with the team.”

Others Begin Prevention

While Qubit and Bunny team is dealing with the damages, other protocols such as MakerDAO are finding ingenious ways to prevent such a similar situation.

 The MAKER team recently announced a $10 million bounty for ethical hackers and cybersecurity specialists who can point out actual security threats to the protocol.