Microeconomics, Web3, Defi, Crypto, Blockchain.
In August 2020, SushiSwap, a fork of Uniswap, attempted to siphon liquidity from Uniswap by offering enhanced incentives to liquidity providers. This strategy, reminiscent of the Bertrand competition, saw SushiSwap diverting a significant portion of Uniswap’s liquidity. Uniswap responded by