Key Takeaways:
- Bancor has sued Uniswap for allegedly infringing on its patented automated market maker (AMM) technology developed in 2016.
- The lawsuit seeks compensation for Uniswap Labs’ unlicensed use and the Uniswap Foundation’s role in promoting the technology.
- Despite the legal action, Uniswap dominates the DEX space with $3.8B in daily trading volume, while Bancor ranks much lower at 142nd.
Bancor has filed a lawsuit against Uniswap, alleging that the popular decentralized exchange unlawfully used its patented automated market maker (AMM) technology.
Bancor claims it developed and patented the “constant product AMM” model in 2016, with patents granted in 2017, and that Uniswap integrated this innovation without permission when it launched in 2018.
JUST IN: BANCOR SUES UNISWAP FOR PATENT INFRINGEMENT ON DEX SMART CONTRACT TECHNOLOGY
— Mario Nawfal’s Roundtable (@RoundtableSpace) May 20, 2025
Source: TheBlock pic.twitter.com/pdNApyubEz
The lawsuit, filed in the U.S. District Court for the Southern District of New York, is led by the Bprotocol Foundation and LocalCoin, and seeks damages for Uniswap Labs’ alleged infringement, along with the Uniswap Foundation’s role in its promotion.
Mark Richardson, Bancor’s project lead, said the legal move was necessary to protect the DeFi industry’s integrity and prevent unchecked competition.
Market data highlights a stark contrast in reach: Uniswap processed around $3.8 billion in 24-hour trading volume, while Bancor lagged behind at just under $380,000, ranking 142nd.
Possibly the dumbest thing I've ever seen 🤡
— Hayden Adams 🦄 (@haydenzadams) May 20, 2025
I look forward to not thinking about this again until a lawyer tells me we won https://t.co/NRyLi5whVm
Bancor argues that failure to enforce patent rights could stifle innovation and harm legitimate DeFi developers.
About The Author
Adam Morris, the co-founder of Crypto Head and a respected crypto expert, offers insightful commentary and analysis on cryptocurrency, NFTs, and the evolving digital landscape.
His extensive experience and features in top-tier publications like Forbes and CNN underscore his deep understanding of the crypto world and its future potential.
Check Adam out on: