What is Bunni Protocol (BUNNI)?
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🟢 The simple version
Plain English — no jargon. Start here.
Bunni Protocol is a next-generation liquidity protocol built on Uniswap v4 that combines concentrated liquidity management with a ve(3,3) governance model — LPs earn BUNNI emissions, lock BUNNI for veBUNNI to direct those emissions, and the system creates a self-reinforcing liquidity flywheel on Uniswap v4's new hook architecture.
Uniswap v4 and the hooks system
Uniswap v4 launched in 2025 with a major new feature: "hooks" — smart contract plugins that execute custom logic before and after swaps, liquidity additions, and other pool actions. Hooks allow anyone to build sophisticated AMM behaviours on top of Uniswap v4 without creating entirely separate protocols. A hook could implement: dynamic fees, concentrated liquidity with auto-rebalancing, custom oracle logic, or — as Bunni does — emission incentives and ve-governance.
Bunni is built as a Uniswap v4 hook, meaning all its liquidity management happens within Uniswap v4 pools rather than in a separate AMM. This gives Bunni access to Uniswap v4's capital efficiency and composability while adding the emission layer that makes LPs want to use it over raw Uniswap v4 directly.
BUNNI token — ve(3,3) model
BUNNI is earned by liquidity providers in Bunni-managed Uniswap v4 pools. Lock BUNNI for veBUNNI to vote on gauge weights — directing BUNNI emissions to specific pools. Protocols wanting deep liquidity in their token pairs on Uniswap v4 can bribe veBUNNI holders. This is the same Velodrome/Aerodrome ve(3,3) model, applied to Uniswap v4 on Ethereum — potentially significant given Uniswap v4's expected liquidity depth on mainnet.
Is BUNNI legal in India?
Yes. BUNNI qualifies as a Virtual Digital Asset (VDA) under Indian law. 30% tax on gains and 1% TDS applies. Always consult a tax professional.
🟡 A bit more detail
For when you want to go a little deeper.
Bunni v2 — the full implementation
Bunni v2 (the Uniswap v4 version) builds on earlier versions that were Uniswap v3-based. The v4 implementation takes advantage of hooks to provide: automated liquidity rebalancing within Uniswap v4 pools (similar to what Gamma and Arrakis do on v3, but natively within v4's hook system); emission distribution directly in swap transactions; and composability with other Uniswap v4 hooks. The hook architecture means Bunni can interact with other v4 hooks — creating potential for complex, multi-hook DeFi strategies that weren't possible in v3.
The Uniswap v4 ecosystem play
Bunni's strategic bet: Uniswap v4 will be the dominant Ethereum DEX, and any project that captures the "incentive layer" for v4 liquidity — the way Aerodrome captured it for Base's Uniswap v3 — will have a very large market. If Bunni becomes the default emission and governance layer for Uniswap v4 liquidity on Ethereum, the addressable market is enormous. This is a high-upside, high-risk bet on Uniswap v4 adoption.
Uniswap v4 and its hooks system are newer infrastructure (2025 launch). The hooks architecture has a broader attack surface than v3 — a malicious or buggy hook could interact unexpectedly with Uniswap's core pool logic. Bunni as a hook inherits this additional smart contract risk. Being early in a new infrastructure has upside but also carries higher risk than v3-based protocols with more battle-testing. Live data: CoinGecko
🟣 The full technical picture
For the technically curious.
Key facts
- Token: BUNNI (emissions to LPs) + veBUNNI (locked, votes gauges)
- Built on: Uniswap v4 hooks
- Chain: Ethereum
- Model: ve(3,3) — same as Velodrome/Aerodrome but for Uniswap v4 on Ethereum
- Uniswap v4 feature used: Hooks — custom logic at swap/LP actions
- Strategy: Become the incentive and governance layer for Uniswap v4 liquidity
- Competitors: Aerodrome (Base), Velodrome (Optimism) — different chains/DEXes
- Risk: Uniswap v4 hooks novelty; hook interaction vulnerabilities
Uniswap v4 hooks — technical overview
Uniswap v4 pools are defined by a {token0, token1, fee, tickSpacing, hooks} tuple — the hooks address is now a core pool parameter. A hooks contract implements a standard interface with callback functions: beforeSwap, afterSwap, beforeAddLiquidity, afterAddLiquidity, etc. Bunni's hook contract implements these callbacks to: track LP positions for emission eligibility (afterAddLiquidity updates BUNNI accrual), distribute BUNNI rewards (afterSwap calculates and distributes proportional emissions), and manage gauge weights (beforeAddLiquidity checks which pools are in active gauges). The hook system allows all this to happen atomically within standard Uniswap v4 interactions.