Bancor Files Patent Infringement Lawsuit Against Uniswap Over Unlicensed Use of Foundational Technology Behind Decentralized Exc

Highlights How Bancor’s Invention Revolutionized Decentralized Finance by Making a Absolutely Useful Decentralized Alternate a Actuality

Reveals That Uniswap Has Been Infringing Bancor’s Patents and Seeks Damages

Zug, Switzerland, Might 20, 2025 — Bprotocol Basis, a non-profit basis devoted to selling the event and adoption of the Bancor Protocol, and LocalCoin Ltd. (“LocalCoin”), the unique developer of the Bancor Protocol, right this moment introduced that they’ve filed a lawsuit in america District Courtroom for the Southern District of New York (the “Courtroom”) in opposition to Uniswap Labs and Uniswap Basis (collectively, “Uniswap”) for infringing Bancor patents directed to good contract buildings and applied sciences that allow decentralized buying and selling. Bprotocol Basis and LocalCoin are searching for damages for Uniswap’s unauthorized use of their patented know-how, which is the basic know-how that underlies the fixed product automated market maker (“CPAMM”) powering the Uniswap Protocol.

Invented in 2016, Bancor’s revolutionary know-how was designed to switch the standard order books and market makers of centralized exchanges utilizing a sensible contract construction that acts as an “automated market maker” for decentralized platforms. Bancor filed a patent software for the know-how on January 8, 2017, and used the good contract construction to construct the Bancor Protocol, the primary totally decentralized trade powered by automated market makers.

Mark Richardson, Mission Lead at Bancor, commented:

“Bancor’s patented know-how is likely one of the most vital improvements in blockchain, and we’re exceptionally happy with the function it has performed in revolutionizing the world of decentralized finance. By making decentralized exchanges a actuality, Bancor’s invention has endlessly modified how cryptocurrencies are traded. Since growing this know-how, Bancor’s mission has all the time been the identical: to deliver revolutionary innovations to DeFi that push the boundaries of what’s doable.

Nonetheless, when a company constantly makes use of our invention with out our authorization and does in order a method of competing with us, we should take motion. For the final eight years, Uniswap has been utilizing our patented know-how in its tasks with out our permission. Because of this, we now have taken authorized motion to defend our know-how for the nice of your entire DeFi group.

As innovators and inventors, defending our mental property is prime to the well being of the ecosystem. If corporations like Uniswap can act unchecked with out consequence, we worry it is going to hinder innovation throughout the trade to the detriment of all DeFi gamers.”

Key Details:

In 2016, Bancor invented the good contract buildings that allow consumers and sellers to transact in a liquid and dependable method with out the necessity for a centralized middleman.On January 8, 2017, Bancor filed a provisional patent software describing its revolutionary know-how and related good contract buildings using such know-how. The applying was filed with the U.S. Patent Workplace and subsequently led to 2 issued patents.Bprotocol Basis and LocalCoin personal all rights associated to the invention, and Bancor launched a white paper explaining the invention in February 2017.The Bancor Protocol was constructed utilizing the invention and launched on June 12, 2017. It was the primary totally decentralized trade (DEX) powered by automated market makers, particularly the primary implementation that has come to be referred to as CPAMM.Uniswap Labs later used the patented invention to create its personal competing protocol — the Uniswap Protocol.In November 2018, Uniswap Labs launched v1 of the Uniswap Protocol and has frequently operated an infringing CPAMM through the Uniswap Interface since that point, most just lately saying the launch of v4 of the Uniswap Protocol.Uniswap Labs has used the patented invention with out authorization, license or partnership from Bprotocol Basis or LocalCoin, and has profited vastly.With this lawsuit, Bprotocol Basis and LocalCoin search compensation for Uniswap Labs’ unlicensed use of Bancor’s patented know-how and Uniswap Basis’s inducement of infringement.

About Bancor

Bancor has all the time been on the forefront of DeFi innovation, starting in 2017 with the invention of bonding curves, pool tokens, and the trade methods which emerge therefrom. Bancor revolutionized the world of DeFi by launching the Bancor Protocol, the primary totally decentralized trade powered by automated market makers. Be taught extra at bancor.community.

About Bprotocol Basis

Bprotocol Basis is a non-profit group devoted to selling the event and adoption of the Bancor Protocol. Based in 2017, the muse has a mandate to safeguard the Bancor group and its pursuits.

About LocalCoin

LocalCoin is a digital asset laboratory and software program improvement firm constructing revolutionary merchandise starting from blockchain infrastructure to totally built-in client purposes. It’s the unique developer of the Bancor Protocol.