The lawsuit claims Uniswap has used Bancor’s patented automated market maker expertise with out permission since 2018.
The group behind the decentralized finance (DeFi) protocol Bancor has filed a lawsuit in opposition to decentralized change (DEX) Uniswap, accusing it of copying key expertise utilized in DEXs.
The lawsuit, filed within the U.S. District Courtroom for the Southern District of New York, particularly facilities round Bancor’s Fixed Product Automated Market Maker (CPAMM) mannequin. Bancor is a liquidity protocol with a complete worth locked (TVL) of round $59 million, in accordance with DeFiLlama. Patented in 2017, the CPAMM mechanism permits on-chain token swaps with out the necessity for order books.
Within the swimsuit, Bancor alleges Uniswap – a DEX with almost $5 billion in TVL – has used this method since launching its first model in 2018 and continued to construct on it by way of to its newest v4 launch in January.
“Bancor’s patented technology is one of the most important innovations in blockchain, and we are exceptionally proud of the role it has played in revolutionizing the world of DeFi,” mentioned Mark Richardson, Mission Lead at Bancor, in accordance with a press launch. “However, when an organization continuously uses our invention without our authorization and does so as a means of competing with us, we must take action.”
Richardson claimed that for the final eight years, Uniswap has been utilizing the patented expertise with out Bancor’s permission. “As a result, we have taken legal action to defend our technology for the good of the entire DeFi community,” he mentioned.
In response to the lawsuit, Hayden Adams, the CEO of Uniswap Labs, known as the submitting “possibly the dumbest thing I’ve ever seen” in a submit on X earlier as we speak. He added that he seems ahead to not occupied with this “until a lawyer tells me we won.”
Uniswap Labs didn’t instantly reply to The Defiant’s request for remark. Since information of the lawsuit broke, Uniswap’s UNI token has dropped almost 2% on the day, and is at the moment buying and selling at $5.87, in accordance with CoinGecko information.
