What Doesn’t Kill You Makes You Stronger? Evidence from Vampire Attack on Decentralized Exchange

Simple item page
dc.contributor.authorZhao, Xi
dc.contributor.authorLi, Jian
dc.contributor.authorWan, Xiang (Shawn)
dc.contributor.authorZang, Xinyu
dc.contributor.authorCheng, Hsing
dc.date.accessioned2023-12-26T18:43:12Z
dc.date.available2023-12-26T18:43:12Z
dc.date.issued2024-01-03
dc.identifier.doihttps://doi.org/10.24251/HICSS.2024.498
dc.identifier.isbn978-0-9981331-7-1
dc.identifier.other039e4543-b006-4f3a-848a-82214cf16d7d
dc.identifier.urihttps://hdl.handle.net/10125/106882
dc.language.isoeng
dc.relation.ispartofProceedings of the 57th Hawaii International Conference on System Sciences
dc.rightsAttribution-NonCommercial-NoDerivatives 4.0 International
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/4.0/
dc.subjectCrowd-based Platforms
dc.subjectdecentralized exchange (dex)
dc.subjectplatform entry strategy
dc.subjecttokenized incentive
dc.subjectvampire attack
dc.titleWhat Doesn’t Kill You Makes You Stronger? Evidence from Vampire Attack on Decentralized Exchange
dc.typeConference Paper
dc.type.dcmiText
dcterms.abstractOur study examines the impact of vampire attack, a unique platform entry strategy in the blockchain ecosystem. The cryptocurrency market has grown dramatically over the past decades since the emergence of Bitcoin protocol in 2008. Decentralized exchanges (DEXs), allowing blockchain users to directly buy and sell cryptos on the chain, started to blossom recently with trading volume reaching 80% on-chain market share at its peak. As the DEX becomes immensely popular, so does the vampire attack, where the entrant attacker completely clones the incumbent’s platform and “sucks” its liquidity by providing tokenized rewards. We implement a quasi-experimental design to uncover the deposit-side and exchange-side impact of the first and most famous vampire attack launched by Sushiswap (attacker) against Uniswap (incumbent). Surprisingly, the vampire attack leads to no significant downturn on the deposit-side, and even promotes the exchange-side performance. We plan to further uncover the underlying reasons that contribute to these intriguing results.
dcterms.extent9 pages
prism.startingpage4134

Files

Original bundle

Now showing 1 - 1 of 1
Thumbnail Image
Name:
0408.pdf
Size:
540.73 KB
Format:
Adobe Portable Document Format
Download

Collections

Crowd-based Platforms