Bunni (BUNNI) is the governance token of the Bunni decentralised exchange (DEX), built on Uniswap v4. Bunni aims to maximise liquidity provider (LP) profits across varying market conditions.

Bunni introduces several innovative features to enhance liquidity provision:​

• Liquidity Density Functions (LDFs): These allow for efficient liquidity distribution and modification, enabling complex liquidity shapes with constant gas costs.

• Shapeshifting: This feature enables LPs to programmatically adjust their liquidity positions, allowing for dynamic responses to market conditions without the need to remove and recreate positions.

• Autonomous Rebalancing: Bunni eliminates the need for external keepers by autonomously maintaining optimal token ratios within liquidity pools.

By wrapping Uniswap v4 positions into fungible ERC-20 tokens, Bunni enhances composability and gas efficiency, making it easier for LPs to manage and optimise their positions.

BUNNI serves as the governance token within the Bunni ecosystem. Holders can lock their BUNNI tokens for up to one year to receive voting power, influencing protocol decisions and future developments. The voting power is proportional to the amount of BUNNI tokens locked and the duration of the lock.

Additionally, Bunni employs a unique incentive mechanism using call options tokens (oLIT) as rewards for liquidity providers. This approach aims to align the interests of LPs and token holders, promoting long-term participation and reducing the likelihood of immediate token sell-offs.