Bancor Sues Uniswap for Patent Infringement!

The Bprotocol Foundation and LocalCoin have filed a lawsuit against Uniswap Labs and the Uniswap Foundation, alleging patent infringement.

Lawsuit causes a stir

On May 20, 2025, the Bprotocol Foundation and LocalCoin, the organizations behind the Bancor Protocol and the Bancor token BNT, announced that they had filed a lawsuit against Uniswap (UNI). This lawsuit was filed in the United States District Court for the Southern District of New York.

Bancor's strong accusations

Bancor accuses Uniswap of infringing its patents related to technology for using smart contracts in decentralized trading. Uniswap, one of the leading decentralized exchanges, enjoys immense popularity and acquires large trading volumes in the crypto market.

In the lawsuit, Bancor alleges that Uniswap is using its proprietary technology that powers the Constant Product Automated Market Maker (CPAMM), the core mechanism behind the Uniswap protocol. Bprotocol and LocalCoin argue that this action constitutes unauthorized use of their proprietary technology.

“When an organization continually uses our invention without our permission, and does so as a means to compete with us, we must take action,” reads an excerpt from the press release Bancor released on Tuesday.

Years of infringement

The project claims that Uniswap has been relying on this technology for the past eight years, all without Bancor's permission.

The legal action, according to the Bprotocol Foundation and LocalCoin, aims to defend their intellectual property against continued, unauthorized use.

Origin of the technology

Bancor filed a patent application in 2017 for its decentralized trading technology, which it invented in 2016. This is the same technology it used to launch its AMM-powered DEX protocol.

According to Bprotocol Foundation and LocalCoin, Uniswap Labs has been illegally using this technology in the Uniswap Protocol since version 1 launched in November 2018. The protocol unveiled its new DEX platform Carbon in April 2023.

Uniswap Growth

The Uniswap Protocol has grown since the launch of version 1, recently surpassing a cumulative exchange volume of $3 trillion, a major milestone amid a surge in the DeFi market.

Additionally, the total value locked in the protocol has increased significantly, mainly due to upgrades leading to the launch of Uniswap version 4.

According to data from DeFiLlama, the current T from Uniswap more than $4.8 billion.

Frequently Asked Questions

What exactly does the lawsuit entail?
The lawsuit concerns allegations of patent infringement by Uniswap on technologies developed by Bancor that are essential to decentralized trading.

When was the technology first developed?
Bancor developed the decentralized trading technology in 2016 and filed a patent application in 2017.

How has Uniswap responded to the developments?
So far, Uniswap has not made an official response to the allegations or the lawsuit.

“Remember, it’s the battle of the Titans in the crypto world!” The developments surrounding this lawsuit promise to be exciting. Stay tuned and watch this battle of innovative forces unfold!