The team at Uniswap Labs has responded to a patent lawsuit from the decentralized exchange (DEX) Bancor, describing it as “baseless.” This was reported by The Block.
The legal proceedings commenced following Bancor’s claim of copyright infringement concerning the automated market maker technology, which Uniswap allegedly used without permission since 2017.
A representative from Uniswap Labs told The Block:
“Our protocol’s code has been open and accessible for years. This is a distraction at a time when DeFi is gaining historic momentum.”
The community criticized Bancor’s actions as contrary to the principles of decentralization. On social media, users labeled the lawsuit “anti-DeFi” and reminded that open code is the foundation of the industry.
“It’s unclear why Bancor is litigating in an industry built on open source code,” wrote one commentator.
Bancor and Carbon DeFi are dead to me now.
I can’t think of any compelling reason for this lawsuit in an industry where open source is the norm. https://t.co/NmuqRlYF7z
— Brad (@b05crypto) May 20, 2025
However, some observers pointed out Uniswap’s double standards: the protocol benefits from intellectual property laws by preventing other teams from using its code for their later versions.
Bancor did invent the AMM, though. And Uniswap is a company that takes advantage of IP laws by blocking other teams from using code for their later versions.
Sounds like Uniswap is throwing stones from a glass house.— Big Bald Bird ?? (@shinsyotta) May 20, 2025
Uniswap founder Hayden Adams called the situation “the dumbest thing” and promised to forget about it until the court’s decision.
Possibly the dumbest thing I’ve ever seen ?
I look forward to not thinking about this again until a lawyer tells me we won https://t.co/NRyLi5whVm
— Hayden Adams ? (@haydenzadams) May 20, 2025
In May, Uniswap became the first among DEXs to reach a cumulative turnover of $3 trillion.