Bancor Accuses Uniswap of Infringing Core DeFi Smart Contracts

TLDR

Bancor sues Uniswap over key DEX patent infringement claims. Bprotocol alleges Uniswap copied its CPAMM model without permission. Lawsuit could set major precedent for DeFi patent rights. Bancor claims it built the first DEX using CPAMM tech. Uniswap v1 to v4 accused of ongoing patent violations.

Bprotocol Foundation and LocalCoin Ltd. have filed a lawsuit against Uniswap Labs and the Uniswap Foundation in U.S. federal court. The plaintiffs accuse Uniswap of infringing patented smart contract technology that supports decentralized trading. The lawsuit centers around Bancor’s invention of the constant product automated market maker (CPAMM) model.

Bprotocol Foundation claims it filed a provisional patent for this invention in January 2017 after developing it in 2016. Using this technology, it then built and launched the Bancor Protocol in June 2017. This marked the debut of the first decentralized exchange (DEX) using CPAMM smart contracts.

Bancor sues Uniswap over alleged use of patented DEX technology

Bancor’s $BNT developers have filed a lawsuit against Uniswap Labs $UNI and the Uniswap Foundation, claiming they used Bancor’s patented constant product automated market maker (CPAMM) technology without permission,…

— CoinNess Global (@CoinnessGL) May 20, 2025

The plaintiffs allege that Uniswap Labs used this technology without authorization to build its competing platform. Uniswap introduced its own DEX in November 2018, based on the same CPAMM model. The complaint asserts that Uniswap has profited from this patented structure without licensing or partnership.

Bancor Claims It Pioneered Decentralized Exchange Technology

According to the plaintiffs, Bancor was the first to make fully decentralized exchanges a functional reality using smart contract automation. They assert that their design eliminated the need for order books and centralized market makers. This innovation, they say, allowed users to trade tokens on-chain seamlessly and without intermediaries.

Bprotocol Foundation and LocalCoin Ltd. claim full ownership of the two patents linked to this invention. They highlight that the invention has supported Bancor’s long-standing role in pushing decentralized finance (DeFi) forward. The lawsuit maintains that Bancor released a white paper in February 2017 detailing the technology’s use and function.

The plaintiffs allege that Uniswap Labs knowingly used this invention without obtaining rights. The lawsuit points to Uniswap’s continuous use of CPAMM across its protocol versions. Bprotocol seeks monetary compensation for years of alleged unauthorized use and damages caused by the infringement.

Uniswap Accused of Long-Term Unauthorized Use

The complaint states that Uniswap launched v1 of its DEX in 2018, using CPAMM smart contracts without permission. Since then, Uniswap Labs has released several protocol updates, including the most recent v4 version. According to the plaintiffs, each version continues to infringe on the same technology.

Bprotocol argues that Uniswap Foundation also induced this infringement by supporting and promoting the platform’s expansion. The lawsuit suggests that both entities acted with full knowledge of the patent status. Consequently, the plaintiffs now seek legal remedies and recognition of their intellectual property rights.

Uniswap and Bancor offer similar services by allowing users to trade tokens without centralized platforms. However, Bprotocol’s legal action marks a pivotal challenge in how DeFi innovations are protected. The case may shape future boundaries for intellectual property in decentralized finance.

Source: CoinMarketCap

The Uniswap (UNI) price has declined over the past 24 hours, falling to $5.71, marking a 3.74% drop. The price briefly spiked above $6.10 early in the day but faced steady downward pressure afterward. Trading volume also dropped by 14.18%, indicating reduced market activity.

 

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