Bunni

• Name: Bunni
• URL: https://bunni.pro/
• Tags: ethereum-ecosystem
• Category: liquidity-incentive infrastructure / shapeshifting concentrated-liquidity AMM / vote-escrowed DEX governance layer
• Summary: Bunni is best understood as a grafting of Curve-style gauge politics onto Uniswap-style concentrated liquidity, later extended into a Uniswap-v4-native AMM with automated liquidity-shape control. In v1, Bunni wrapped Uniswap positions into fungible ERC-20 LP tokens so gauge voting, ve-token boosts, and option-style liquidity incentives could sit on top of concentrated liquidity. In v2, Bunni pushed the control surface further upward with Liquidity Density Functions, autonomous rebalancing, rehypothecation, an auction-managed AMM, and a zone contract that can restrict rebalancing execution to approved solvers. The reusable insight is that Bunni turns LP incentives and liquidity-shape management into explicit governance and infrastructure layers rather than leaving them as passive consequences of an underlying AMM.
• What it does:
  • Wraps Uniswap liquidity positions into fungible ERC-20 tokens so multiple LPs can share the same position and use it in token-native DeFi plumbing
  • Uses Curve-inspired gauges and vote-escrowed governance so lockers can direct incentives toward specific Bunni liquidity pools
  • Uses oLIT option tokens instead of plain token emissions, turning liquidity mining into a discounted continuous token-sale mechanism that routes more cash back to the protocol
  • In Bunni v2, lets LPs choose or deploy liquidity shapes through Liquidity Density Functions instead of static concentrated-liquidity ranges alone
  • Adds autonomous rebalancing, rehypothecation of idle assets, and an auction-managed AMM intended to recapture MEV and reduce LP leakage
  • Splits core authority across immutable pool contracts, governance-selected zone infrastructure, and solver pathways used for automated rebalancing
• Key claims:
  • The official docs describe Bunni as a liquidity engine for incentivizing Uniswap liquidity and say its wrapper turns Uniswap positions into ERC-20 tokens, which is what makes Curve-style gauges possible on top of otherwise NFT-like LP positions
  • The v1 docs explicitly say Bunni adopted Curve’s gauge system for Uniswap positions and that gauges distribute oLIT based on veLIT voting
  • The docs say Bunni uses a Balancer 80LIT-20WETH LP token as the lock asset for veLIT, raises the max reward boost above Curve’s default, and uses option-style reward tokens instead of direct emissions
  • The gauges docs say Bunni can kill out-of-range gauges using a dedicated oracle, so incentive routing is conditioned on the protocol’s own view of whether a position remains in range
  • The v2 docs describe Liquidity Density Functions, shapeshifting liquidity, autonomous rebalancing, rehypothecation, and an am-AMM as first-class protocol features rather than peripheral strategy add-ons
  • The v2 technical overview says BunniZone restricts auto-rebalancing execution to a whitelisted solver set plus the am-AMM manager, and that governance can choose a new zone version for all pools; this is a meaningful control surface above the immutable pool logic
  • The public bunni-v2 repository warns that Bunni v2 was exploited and that the repository does not include the relevant fixes, which is an important caution when treating the codebase as a live canonical implementation
• Whitepaper: ../whitepapers/bunni-v2-whitepaper.pdf and ../whitepapers/bunni-primary-sources-2026-05-08.md
• Sources:
  • https://bunni.pro/
  • https://docs.bunni.xyz/docs/v1/introduction/
  • https://docs.bunni.xyz/docs/v1/tokenomics/gauges/
  • https://docs.bunni.xyz/docs/v1/tokenomics/olit/
  • https://docs.bunni.xyz/docs/v2/overview/
  • https://docs.bunni.xyz/docs/v2/technical/overview/
  • https://github.com/Bunniapp/bunni-v2
  • https://raw.githubusercontent.com/Bunniapp/bunni-v2/main/README.md
  • https://github.com/Bunniapp/whitepaper/blob/main/bunni-v2.pdf
  • https://assets.ctfassets.net/i0qyt2j9snzb/5YqtLbpbwBxM6XEvTJwPFN/08cefd4ed44bb7459662c867d444a53c/Bunni_v2_-_The_Liquidity_Provider-s_DEX.pdf

Internal linkages

• Base primitive it wraps rather than replaces: uniswap.
• Best emissions-politics predecessor to keep in view: curve.
• Closest higher-layer control-plane comparison: arrakis.

Governance / control risk

• Practical authority accumulates around veLIT vote concentration, gauge eligibility, oracle decisions about whether gauges remain live, governance choice of zone versions, and solver whitelists for automated rebalancing.

• That makes the protocol a good example for Control Surfaces: the immutable pool substrate matters, but user outcomes can still be steered materially by operator-selected infrastructure above it.

• Last reviewed: 2026-05-31 UTC