Bancor has sued Uniswap in the Southern District Court of New York on May 20, 2025, accusing the 'king' of decentralized exchanges (DEX) of copying the AMM technology that Bancor invented in 2016, raising serious questions about fairness in the DeFi industry.
Serious Allegations from Bancor
Bancor, a pioneer in automated market making (AMM) technology, claims that Uniswap Labs and Uniswap Foundation have infringed on the 'constant product AMM' patent granted in 2017. This technology is the mathematical foundation for liquidity pools on DEX. Launched in 2018, it is accused not only of inheriting but also copying to develop the protocol, achieving a total trading volume of $2.8 trillion. Bancor representative Mark Richardson emphasized: 'When an organization uses our technology to compete without permission, we are forced to act.'
Power Dynamics and Significance
The disparity between the two parties is stark: Uniswap leads globally with $4.7 billion in daily trading, according to DefiLlama, while only achieving $520,000, ranking 142nd. The lawsuit is not just about claiming intellectual property but also a warning about unfairness in DeFi. Bancor argues that if 'big players' like Uniswap continue to behave outside the law, innovation will be stifled, pushing original creators like Bancor to the sidelines.
Impact and Prospects
The lawsuit challenges the ideal of 'decentralization' in DeFi, questioning whether the industry is becoming a disguised monopoly. In the next 1-2 years, if Bancor wins, DeFi projects may have to reconsider how they use technology, promoting patent protection. Conversely, if Uniswap wins, this could solidify their position but damage trust in fairness. With Ethereum ($2,600) and Bitcoin ($104,699) growing, the lawsuit will significantly impact the future of DeFi.
Conclusion: Does DeFi Need a Fair Playground?
Bancor is suing Uniswap for copying AMM technology, calling for the DeFi industry to reflect on fairness. The outcome of the lawsuit could shape the future of blockchain, demanding stricter protection for innovation to ensure sustainable progress.
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