cryptocurrency

Enso mounting 'vampire attack' on six crypto index projects – Cointelegraph

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Metaverse-based social trading platform Enso Finance has announced its plans to launch its platform by performing a “vampire attack” on six major crypto index projects on Dec. 9.

A vampire attack is when a platform entices users and liquidity from a competing platform by offering higher incentives for use. In September 2020, SushiSwap performed a vampire attack that led to about $1.5 billion moving from Uniswap to SushiSwap.

The Enso team tweeted on Dec. 7 that the attack would focus on Index Coop, Tokensets, PieDAO, dHEDGE, Powerpool, and Indexed. Each of these protocols offer crypto index products which aggregate the performance of a basket of assets in a particular niche, such as DeFi coins or NFT game tokens. Users will have to deposit index tokens from those indexes onto Enso’s platform to earn an array of incentives. It aims to attract up to $1.05 billion in total value locked (TVL).

Enso is a social trading platform that will allow individuals, communities, or decentralized autonomous organizations (DAO) to create trading strategies or yield farm strategies. They will then be able to share their keys to a successful strategy on the platform.

Enso will reimburse gas fees, give away ENSO governance tokens, and airdrop Enso nonfungible tokens (NFT) to early adopters.

After users keep their migrated tokens staked on Enso for 3 weeks, Enso will burn the original tokens and issue wrapped versions of that index’s underlying assets.

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Enso co-founder Connor Howe was optimistic about the stunt’s potential.

“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.”