Enso Finance Plans “Vampire Attack” Targeting DeFi Index Protocols
Key Takeaways
Enso Finance, a new DeFi index and social trading platform, has announced its mainnet launch due on Dec. 9.
The launch will involve bootstrapping liquidity through a simultaneous vampire attack on six competing protocols.
Users migrating liquidity to the platform will be rewarded with NFTs and Enso’s native tokens.
Share this article
Enso Finance, a new index and social strategy creation platform, has announced its plans to bootstrap liquidity for its platform by launching a simultaneous “vampire attack” on six DeFi index protocols.
Enso Finance to Bootstrap Liquidity via “Vampire Attack”
Enso Finance is about to target six of DeFi’s leading index protocols.
In a Wednesday press release, the new DeFi index and social trading platform announced its mainnet launch due to launch on Dec. 9.
One , six victims
The first multi-platform liquidity migration
9th Dec 2021 pic.twitter.com/A0gqKHHK7Z
— EnsoFinance (@EnsoFinance) December 6, 2021
Enso plans to bootstrap liquidity through a controversial strategy dubbed a vampire attack, which involves enticing users to migrate liquidity from competing protocols by offering higher rewards or incentives for use.
Specifically, Enso plans to take aim at six DeFi index protocols: Index Coop, TokenSets, dHedge, PowerPool, PieDAO, and Indexed Finance. Each of the six protocols offers crypto indices or products that aggregate and track the performance of a basket of assets. They collectively hold about $900 million in total value locked.
Starting Dec. 9, users will be able to transfer their index tokens from the six protocols over to Enso’s platform to begin earning various rewards. Enso will compensate users’ gas fee expenses for the migration and further reward them with NFTs containing “hidden gems” and Enso’s native tokens.
Commenting on the decision to bootstrap the project through a vampire attack, Enso co-founder Connor Howe said:
“Liquidity is the fuel that powers DeFi and it is the essence of Enso’s platform. We want to show the community just how innovative we are, and there’s no better way of doing so than incentivizing existing users to migrate. This is the first time anyone’s attempting to attack six protocols at once, so we’re very anxious to get started!”
The vampire attack liquidity bootstrapping strategy was pioneered by the decentralized exchange Sushi, when last year it successfully forked the code and drained roughly $1.5 billion worth of liquidity from the most prominent decentralized exchange in the space, Uniswap.
Now, Enso is planning to pull a similar move, only to six protocols simultaneously instead of one. In order to entice users to actually migrate their liquidity from its competitors, Enso would likely have to offer significantly higher rewards than these projects already do.
According to the press release, besides merely migrating liquidity from other protocols, users will also be able to create their own yield farming and investing strategies and supply fresh capital to the protocol.
Disclosure: At the time of writing, the author of this feature owned ETH and several other cryptocurrencies.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Vampire Attack or Innovation? Basketdao Storms the DeFi Index Scene
BasketDAO has announced its new DeFi index: BDPI. By taking the same underlying assets and converting them to their yield-bearing equivalent, BasketDAO is offering better a better return than DeFi…
DeFi Project Spotlight: Indexed Finance, Index-Based DeFi Investing
Crypto, and DeFi in particular, can be tedious work to follow. By facilitating investment in specific sectors through indices, Indexed Finance creates an enticing financial product that removes much of…
A Guide to Yield Farming, Staking, and Liquidity Mining
Yield farming is arguably the most popular way to earn a return on crypto assets. Essentially, you can earn passive income by depositing crypto into a liquidity pool. You can think of these liquidity…
DeFi Protocol Indexed Finance Suffers $16M Exploit
Indexed Finance has lost over $16 million worth of users’ assets after a hacker exploited a vulnerability in the protocol’s smart contracts. Indexed Finance Exploited A hacker has found a…
