What Is a “Vampire Attack” in DeFi, and How Is It Related to Governance and Token Supply?

A vampire attack is a strategy where a new DeFi protocol attempts to drain liquidity from an existing one by offering higher incentives, often through a new token. It relates to governance as the new protocol may use the acquired liquidity and new token distribution to establish its own governance power.

It impacts token supply by causing a rapid shift in liquidity and potentially inflating the new protocol's token supply to attract users.