At the invitation of the School of Management and Economics, Professor Hsing Kenneth Cheng of Warrington School of Business, University of Florida, delivered an academic report entitled "Evidence from Vampire Attack on Decentralized Exchange" online at 10:00 a.m. on March 21, 2023. The lecture was presided over by Professor Yan Zhijun, and many teachers and students from the college attended the lecture.At the beginning of the report, Professor Zheng pointed out that with the emergence of Cryptocurrency such as Bitcoin, the Cryptocurrency market has flourished in the past few years. Among them, Decentralized Exchanges enable blockchain users to trade Cryptocurrency directly through the on chain network, ensuring the openness and transparency of transactions. The popularity of decentralized exchanges has led attackers to profit by cloning existing platform business models and distributing rewards to users to transfer liquidity from existing platforms to their cloned platforms, a behavior known as Vampire Attack.
Professor Zheng conducted a quasi experimental empirical study on the vampire attack behavior of Sushiswap (attackers) on Uniswap (existing platforms), exploring the impact of vampire attacks on the transaction volume of storage and trading parties on existing platforms. Professor Zheng's research found that vampire attacks have a significant negative impact on the transaction volume of existing storage parties on the current platform, while they have a significant positive impact on the transaction volume of new storage parties on the platform. In response to this result, Professor Zheng explained that vampire attacks have a competition effect on existing platforms, reducing the transaction volume of existing platform storage parties through additional incentives. However, vampire attacks also have an Informational Effect and Persuasion Effect on existing platforms, which increases the visibility of existing platforms among new user groups, thereby increasing the transaction volume of new storage users on existing platforms. On the other hand, Professor Zheng found that vampire attacks have a significant positive impact on the trading volume of new trading parties on the current platform, but have no significant impact on the trading volume of existing trading parties, and pointed out that this is because vampire attacks do not provide additional incentives to existing trading parties. Finally, Professor Zheng summarized the research and pointed out that the attacked platforms should take corresponding measures to reduce the loss of existing user traffic caused by vampire attacks and expand the positive impact on new users.
After the report, the attending teachers and students had a positive discussion with Professor Zheng, which received a lot of inspiration. The report received a warm response and received unanimous praise from teachers and students.
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Professor Hsing Kenneth Cheng is a distinguished scholar of John B. Higdon at the University of Florida and the dean of the Department of Information Systems and Operations Management at Warrington Business School. He received his doctorate in computer and information systems from the University of Rochester in 1992. Professor Zheng's main research directions are the analysis of the impact of internet technology on software development and marketing, as well as information system policy issues (especially the national debate on network neutrality). Based on his papers published in the top three information systems journals, Professor Zheng ranked 20th (2009-2011) and 16th (2010-2012) among the 100 researchers in global information systems. Professor Zheng is former Associate Editor in Chief of Decision Sciences and Senior Editor of the Journal of the Association for Information Systems, Information Systems, and Electronic Management. From 2011 to 2014, he served as the Deputy Editor in Chief of Information Systems Research and served on the project committee for many information systems conferences and seminars. He also served as the Co Chair of the Workshop on E-Business (2003, 2012) and Taiwan Summer Workshop on Information Management projects.
