Bancor Files Lawsuit against Uniswap, accusing the leading decentralized exchange (DEX) of copying its patented automated market maker (AMM) technology. Submitted to the Southern District of New York on May 20, 2025, the suit claims Uniswap’s use of Bancor’s “constant product AMM” undermines innovation in the DeFi sector. This article explores the intellectual property dispute and its implications for the blockchain technology landscape.
A Clash Over AMM Technology
Top 10 DEXs by 24-hour trading volume. Source: DefiLlama
Bancor Files Lawsuit, alleging that Uniswap Labs and Uniswap Foundation infringed on a patent Bancor secured in 2017 for its constant product AMM, developed in 2016. This mathematical framework powers liquidity pools on DEXs, enabling seamless token swaps. Bancor, a pioneer in DeFi sector innovation, argues that Uniswap, launched in 2018, replicated this technology to amass $2.8 trillion in trading volume, profiting from Bancor’s intellectual property without permission.
Mark Richardson, a Bancor representative, stated, “When competitors use our technology without consent to challenge us directly, we must act.” The lawsuit asserts that Uniswap’s actions threaten the blockchain technology ecosystem by stifling original creators. Bancor warns that unchecked infringement could lead to a DeFi sector dominated by a few giants, eroding the decentralized ethos.
Uniswap’s Dominance vs. Bancor’s Struggle
Bancor Files Lawsuit amid stark market disparities. Per DeFiLlama data from May 21, 2025, Uniswap leads global DEXs with $4.7 billion in daily trading volume, while Bancor lags at 142nd with just $520,000. This gap fuels Bancor’s claim that Uniswap’s success partly stems from leveraging Bancor’s patented AMM model, creating an uneven playing field in the crypto exchange market.
The intellectual property dispute highlights broader issues in DeFi’s regulatory framework. Bancor argues that without robust protections, innovators risk being sidelined by larger players exploiting open-source ideals for profit. Online discussions reflect mixed sentiments: some praise Bancor’s stand for innovation, while others view Uniswap’s growth as legitimate market competition.
A Call for DeFi Accountability
Bancor Files Lawsuit to challenge the DeFi sector’s status quo, questioning whether decentralization masks monopolistic tendencies. By taking Uniswap to court, Bancor seeks to redefine fairness in blockchain technology, ensuring pioneers are rewarded for their contributions. The case could set a precedent for how intellectual property is handled in decentralized systems, influencing future crypto exchange market dynamics.
If successful, Bancor could secure damages or licensing fees, reshaping Uniswap’s operations. However, a loss might embolden other DEXs to challenge patents, weakening protections for smaller innovators. The outcome will likely impact investor confidence and regulatory scrutiny in the DeFi sector.
Conclusion
Bancor Files Lawsuit, accusing Uniswap of stealing its patented AMM technology, igniting a pivotal intellectual property dispute. With Uniswap dominating the crypto exchange market and Bancor fighting for recognition, the case tests DeFi’s commitment to fairness. As the DeFi sector evolves, this lawsuit could redefine innovation and accountability in blockchain technology, shaping the future of decentralized finance.
