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Bunni explainer

Why Alien Base wraps V3 positions as ERC-20 share tokens

Bunni is a Uniswap V3 wrapper developed by Timeless Finance. It turns each V3 LP position from an NFT into an ERC-20 share token — making concentrated-liquidity positions composable, transferable, and farmable.

Last updated: July 6, 2026. Alien Base ships a fork of Bunni alongside its V3 stack.

Why wrap V3 positions

Native Uniswap V3 represents each LP position as an ERC-721 NFT. That's expressive (every position is unique) but it's a pain to compose with the rest of DeFi:

  • Most farming contracts expect ERC-20 tokens, not NFTs.

  • NFTs don't aggregate cleanly — you can't "pool" 100 different NFTs together.

  • Per-user NFT positions mean the protocol can't farm on behalf of users, only on per-NFT bases.

Bunni solves this by deploying a single Vault per (token0, token1, fee tier, range) tuple. When you deposit into the Vault, the Vault holds the NFT and gives you an ERC-20 share token in return. Now:

  • Many users share the same NFT, pooled by the Vault.

  • The Vault's share token is a normal ERC-20 — farmable, transferable, composable.

  • New ranges are simple: deploy a new Vault, users migrate at will.

How Alien Base uses Bunni

Every Vault entry on the Vaults page that's labeled "V3" or "Bunni" uses this pattern. The flow is:

  1. You Zap or Deposit into the Vault.

  2. The Vault holds your share of the underlying V3 NFT.

  3. You receive Bunni share tokens.

  4. The share tokens need to be staked into the Alien Base farming distributor for ALB rewards (auto-staking is in the roadmap).

When you withdraw, the inverse happens: the share tokens redeem against the Vault's NFT, your share of the underlying liquidity is returned to your wallet.

Range management

A Bunni Vault has a fixed price range for its underlying V3 NFT. Range design follows three categories:

  • Wide — analyzed against up to 2 years of price history; designed to stay in range for another 1–2 years.

  • Narrow — more aggressive; can drift out of range in weeks or months on volatile pairs.

  • Stable / LSD — very tight ranges suited for pairs that rarely deviate (USDC/USDT, ETH/cbETH, etc.).

When a Vault drifts close to its boundary, a new Vault with refreshed bounds is deployed. Existing depositors can stay (and accept being out-of-range eventually) or migrate to the new Vault.

This is by design: predictable bounds let LPs reason about their position rather than being silently rebalanced. The trade-off — having to manually migrate — is what Mothership is built to automate.

Source code

Audits

Alien Base's BunniHub code has slightly modified parameters and contains an important bug fix missing in the original protocol. The BunniZap is lightly adapted and shares most of its lineage with the audited upstream zap. Full lineage and links: Audits & Security.

See also

PreviousConcentrated Liquidity (V3)NextV2 Pools (legacy)

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