Intro
First, I talk about the new stuff I'm working on: I start a new project, called GenesisDao, it's about NFT, fractalized NFT, scarcity, trust and art and will run at least over the next 13 years, follow here: https://twitter.com/genesisDA0
Currently, I'm also involved in bootstrapping Aladdindao (https://twitter.com/aladdindao)
Now back to the Vampire Attack
One year ago, I published my article about the vampire attack, at this time a theoretical issue.
As I wrote this idea down, in parallel the sushi chef already started coding in real life, inspired by a tweet from Larry Cermak.
I hit a spot, and the merit was that the name "vampire attack" stuck for this kind of attack. https://twitter.com/martinkrung/status/1298363320270032897
If you read this backround article, migration mining article carefully, then you see that the vampire attack in fact is even more aggressive, more than what sushi did. Until today, we did not see such an attack in the wild. As blockchains are going to be faster and the capacity to move liquidity higher, I guess we will see more aggressive version of vampire attacks in the future.
The base of the vampire attack is that in crypto short-term liquidity has mostly the same price as long-term liquidity, which leads to mercenary liquidity. I name it here here as opportunistic liquidity:
Mercenary liquidity is still big issue in crypto, to my knowledge, only bancor has fixed this with their 100 day impermanent loss insurance, and they also found a way to limit the liquidity of BNT further by making a voting vBNT which you can generate from BNT in one of the pools.
Sushi swap was an instant success, people deposited their uniswap liquidity provider token to farm sushi. But then sushichef was unable to stand the heat in the kitchen and run taking thetreasury with him. This was a major blow. After some days the guy returned the treasury and appointed sam to take over the migration. Sam took lead and the forming sushi community did a superb job with the migration. Today sushi is one of the corner stone of DeFi and is still driven by a loyal community. Sushi has been able to ship constantly new products and grown into a DeFi power house.
Some month later, uniswap made a token too, and did airdrop 400 UNI to every one who used uniswap more than once. Going public this way was a clear response to sushis vampire attack.
Sadly, uniswap failed to be a community driven project and the governance is in a bad shape. With the V3 it's clear that uniswap is going b2b regarding liquidity providing, quite a different approach then sushiswap.
I'm sure these days we will see a lot articles about the sushiswap saga!