SushiSwap to Overthrow Uniswap? FTX Owner Stages $1 Billion Liquidity Heist

Migrating Uniswap V2 liquidity-provider tokens to SushiSwap was the first step in Sam Bankman-Fried’s elaborate plan to takeover Uniswap. More than that, he is challenging Ethereum with FTX’s Solana and Serum as the blockchain standard for DeFi.

“Vampire attack” refers to the hostile movement of $1 billion in liquidity from the Uniswap to the competitor SushiSwap pools via the liquidity provider (LP) token migration process. Uniswap was the leading marketplace for obtaining ERC-20 DeFi tokens long before these tokens earned a centralized exchange listing. As such, the platform has swelled in popularity and usage. Out of the total $7.1 billion locked in DeFi, Uniswap was one of the few projects without a native token incentive.

Uniswap’s total liquidity went from zero at the beginning of May to an all-time high liquidity of $2 billion on Sept. 4. The peak daily volume on the decentralized exchange (DEX) was just short of $1 billion on Sept. 1, which is greater than the average daily volume on all centralized spot exchanges except Binance.

Now Uniswaps’ rival fork SushiSwap is working to siphon this liquidity off of Uniswap by enticing defectors with a newly-launched governance token called SUSHI. Bankman-Fried also offered a two million SUSHI reward for early participants who keep staking through the migration process.

Our boy @sbf_alameda is about to pull off a Hollywood level heist. In one hostile takeover he's about to siphon 70% of @UniswapProtocol's liquidity onto his own platform @solana and @ProjectSerum, lay his massive balls on the table, point down, and say "This is for the community" https://t.co/GmatJuVfOX

— Autism Capital