So what is a vampire attack? And how was SushiSwap able to use a vampire attack to attract over $1B of liquidity in less than a week? You’ll find answers to these questions in this video.
On the 28th of August in the midst of new DeFi projects popping up pretty much every day, a new project called SushiSwap launched. The project quickly gained more and more traction in the DeFi community as it aimed at directly competing with Uniswap by forking the project and siphoning out liquidity with a process later called a vampire attack. The main goal of the project was to create a community-governed automated market maker and fairly distribute its token – SUSHI.
The concept of a vampire attack, although quite simple, is quite ingenious in its nature as it creates very strong incentives for liquidity providers to migrate their liquidity to a new platform. Let’s see what a vampire attack is all about.