Publications
Publications
- February 2024 (Revised April 2024)
- HBS Case Collection
Uniswap: Fighting a Vampire Attack (A)
By: Shikhar Ghosh, Shweta Bagai and Liang Wu
Abstract
This is the first of a three-case series that explores the challenges faced by Uniswap, a key player in the decentralized finance (DeFi) sector. Founded by Hayden Adams, the case traces Uniswap's rapid growth from a simple idea inspired by a Reddit post to becoming one of the leading decentralized exchanges in Web3, with trading volumes peaking at $6 billion in the summer of 2020. The case zeroes in on a critical moment when Uniswap is threatened by a "vampire attack" from SushiSwap, a rival that forks Uniswap's open-source code to launch a competing service, threatening to drain its liquidity. Adams faces the dilemma of how he should respond to the rise of SushiSwap. The case delves into the competitive dynamics of the DeFi ecosystem, challenges of open-source software, and strategic responses to market disruptions.
Keywords
Blockchain; Cryptocurrency; Crypto Economy; Community; Decentralization; Decentralized Exchange; Decentralized Finance; Open Platforms; Open-source Innovation; Market Distruption; Stablecoin; Vampire Attack; Web3; Token; Digital Platforms; Entrepreneurship; Governance; Technological Innovation; Competitive Strategy; Financial Liquidity; Financial Services Industry; Technology Industry; United States
Citation
Ghosh, Shikhar, Shweta Bagai, and Liang Wu. "Uniswap: Fighting a Vampire Attack (A)." Harvard Business School Case 824-162, February 2024. (Revised April 2024.)