DEX War erupts as Bancor accuses Uniswap of copying its patented AMM technology, sparking a legal battle that could reshape the decentralized exchange landscape. Filed on May 20, 2025, in New York’s Southern District Court, the lawsuit claims Uniswap profited unfairly from Bancor’s 2017 innovation. This article explores the blockchain patent dispute and its implications for DeFi innovation.
Bancor’s Legal Offensive
Top 10 DEXs by 24-hour trading volume. Source: DefiLlama
DEX War intensifies as Bancor, a pioneer in automated market maker (AMM) systems, sues Uniswap Labs and Uniswap Foundation for infringing its “constant product AMM” patent, registered in 2017. Developed in 2016, this mathematical framework powers liquidity pools on decentralized exchange platforms. Bancor alleges Uniswap, launched in 2018, replicated this AMM technology to amass $2.8 trillion in trading volume, sidelining Bancor’s contributions.
Mark Richardson, Bancor’s representative, stated, “When competitors use our technology without permission, we must act.” Bancor argues Uniswap’s actions undermine fair competition, accusing it of exploiting intellectual property to dominate the DeFi innovation space. The lawsuit seeks to protect Bancor’s legacy and challenge unchecked appropriation in the blockchain patent dispute.
Uniswap’s Market Dominance vs. Bancor’s Struggle
DEX War highlights a stark contrast between the rivals. DeFiLlama data ranks Uniswap as the top decentralized exchange, with $4.7 billion in 24-hour trading volume. Bancor, languishing at 142nd, manages just $520,000 daily. This disparity fuels Bancor’s claim that Uniswap’s success stems from its patented AMM technology, not independent innovation.
The lawsuit transcends monetary damages, questioning the ethics of DeFi innovation. Bancor warns that if giants like Uniswap operate unchecked, the blockchain patent dispute could stifle creativity, leaving original innovators marginalized in a supposedly decentralized ecosystem. Online discussions reflect divided sentiments: some back Bancor’s fight for justice, while others view Uniswap’s dominance as market-driven, not illicit.
A Test for DeFi’s Principles
DEX War exposes vulnerabilities in DeFi’s regulatory framework. Bancor’s lawsuit challenges whether decentralized platforms uphold fairness or mimic centralized monopolies under a “permissionless” guise. By taking Uniswap to court, Bancor aims to spark industry-wide reflection on protecting intellectual property in blockchain’s open-source ethos.
The case could set a precedent for DeFi innovation, determining how patents are enforced in a sector valuing collaboration. A Bancor victory might embolden smaller projects to defend their creations, while a Uniswap win could reinforce market leaders’ ability to leverage existing tech. The blockchain patent dispute thus carries weight for the entire decentralized exchange ecosystem.
Conclusion
DEX War unfolds as Bancor accuses Uniswap of stealing its AMM technology, igniting a pivotal blockchain patent dispute. With Uniswap’s $4.7 billion daily volume dwarfing Bancor’s $520,000, the lawsuit questions fairness in DeFi innovation. As the New York court deliberates, the outcome will shape the decentralized exchange sector, testing DeFi’s commitment to equitable competition and intellectual property rights.
