Question 1

What is Bunni (BUNNI)?

Accepted Answer

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.

Question 2

What is Bunni (BUNNI) used for?

Accepted Answer

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.

Question 3

# Migration Bonus and Incentives

Accepted Answer

- **Bonus System:** Migration bonuses were distributed based on the remaining lock time of veLIT tokens, with longer commitments receiving higher rewards (e.g., a 3-year remaining lock earned a 75% bonus).
- **Liquidity Incentives:** An increase in veBUNNI allocations was introduced to encourage LIQ holders to migrate to the new ecosystem.
- **Fee Distribution Adjustment:** The new fee structure gradually shifted from a higher referral incentive model to a balanced distribution benefiting veBUNNI holders and the treasury.

Question 4

# Technical Implementation

Accepted Answer

- **New Staking Mechanisms:** A transferless staking contract was introduced for improved gas efficiency and permissionless liquidity mining incentives.
- **Epoch-Based Emissions:** The new emissions structure operates in 3-month epochs, with an initial allocation of 25 million BUNNI for the first epoch.
- **Alignment with Uniswap v4:** The migration strategically positioned Bunni v2 to take advantage of Uniswap v4’s launch, ensuring competitive liquidity incentives.

Question 5

# How to Migrate LIT to BUNNI

Accepted Answer

1. Open the [Bunni app](https://bunni.xyz) and connect your wallet.
2. Navigate to the [Swap UI](https://bunni.xyz/swap?chain=mainnet) on Ethereum Mainnet.
3. Swap LIT for BUNNI at a 1:1 ratio with no slippage.
4. If moving BUNNI to Arbitrum or Base, follow additional bridging instructions provided in the Bunni app.


BUNNI	ERC20	ETH	0x000000C396558ffbAB5Ea628f39658Bdf61345b3	2025-01-29
BUNNIV1	ERC20	ETH	0xfd0205066521550d7d7ab19da8f72bb004b4c341	2023-01-06