Bancor Takes Legal Action, filing a lawsuit against Uniswap on May 20, 2025, accusing the leading decentralized exchange (DEX) of copying its patented AMM technology. The case, lodged in New York’s Southern District Court, claims Uniswap profited from Bancor’s innovation without permission, raising questions about fairness in the DeFi sector. This article explores the dispute and its implications for the blockchain industry.
A Clash Over AMM Innovation
Top 10 DEXs by 24-hour trading volume. Source: DefiLlama
Bancor Takes Legal Action, asserting that Uniswap Labs and the Uniswap Foundation infringed on its 2017 patent for the “constant product AMM” model, developed in 2016. This mathematical framework powers liquidity pools in DEXs, enabling automated trading. Bancor, a pioneer in AMM technology, alleges Uniswap, launched in 2018, replicated this system to amass $2.8 trillion in trading volume, per DeFiLlama data. Bancor views this as an unethical appropriation of its intellectual property.
Mark Richardson, Bancor’s representative, stated, “When an entity uses our technology without consent to compete directly, we must act.” The lawsuit highlights Bancor’s frustration with Uniswap’s dominance, arguing it stifles innovation by overshadowing original creators in the DeFi sector.
Uniswap’s Market Dominance vs. Bancor’s Struggle
Bancor Takes Legal Action amid stark market disparities. Uniswap leads the DEX market, with $4.7 billion in 24-hour trading volume, while Bancor languishes at rank 142 with just $520,000 daily, per DeFiLlama’s May 21, 2025, data. This gap fuels Bancor’s claim that Uniswap’s success stems from leveraging its patented AMM technology without acknowledgment.
Online discussions reflect divided sentiments: some praise Bancor’s stand for intellectual property rights, while others see Uniswap’s open-source ethos as central to DeFi’s growth. The blockchain industry faces a reckoning over how to balance innovation, competition, and legal protections.
A Broader Fight for DeFi’s Principles
Bancor Takes Legal Action to challenge the DeFi sector’s regulatory gaps. The lawsuit argues that unchecked giants like Uniswap risk creating a centralized monopoly under the guise of decentralization, undermining DeFi’s core ideals. Bancor warns that without protections, innovators could be sidelined, stifling creativity in the blockchain industry.
The case questions whether DeFi fosters a fair ecosystem or mirrors traditional monopolies. By pursuing legal action, Bancor aims to protect intellectual property in DeFi. This move could set a precedent. It may reshape how DEXs operate and compete going forward.
Implications for the Blockchain Industry
Bancor Takes Legal Action, spotlighting tensions in the DEX market. A ruling favoring Bancor could force Uniswap to pay damages or alter its protocol, impacting its $4.7 billion daily operations. Conversely, a dismissal might embolden other platforms to challenge patents, weakening protections for early innovators like Bancor. The blockchain industry awaits the court’s decision, which could redefine intellectual property norms in DeFi.
The 2025 crypto market, with altcoins up 30–100% per CoinGecko, amplifies the stakes. Bancor’s lawsuit underscores the need for clarity in a rapidly evolving DeFi sector, where innovation and ethics collide.
Conclusion
Bancor Takes Legal Action against Uniswap, alleging theft of its patented AMM technology, igniting a debate over fairness in the DeFi sector. With Uniswap’s $2.8 trillion volume dwarfing Bancor’s, the lawsuit challenges the DEX market’s integrity. As the blockchain industry watches, this case could reshape DeFi’s future, balancing innovation with accountability.
