Recently, Bancor filed a lawsuit against Uniswap, accusing it of patent infringement related to technology developed in the decentralized finance space.
Details of the Lawsuit
Bancor has filed a lawsuit against Uniswap in the US District Court for the Southern District of New York. The company claims that Uniswap has utilized its automated market maker technology without permission, profiting substantially from it. 'When an organization continuously uses our invention without our authorization, as Uniswap does, we must take action,' said Mark Richardson, project lead at Bancor.
History of the Technology
According to the May 20 announcement, Bancor designed the described technology in 2016 and patented it in January 2017. This technology underpins the 'constant product automated market maker,' using mathematical methods to add or withdraw resources from a liquidity pool.
Comparison of Bancor and Uniswap's Success
Uniswap significantly surpasses Bancor in decentralized exchange metrics. Data from DefiLlama ranks Uniswap as second among all decentralized exchanges in 24-hour trading volume, with nearly $3.8 billion traded. Conversely, Bancor ranks 142nd with a trading volume of only $378,579 as of May 20. Richardson noted that unchecked actions by companies like Uniswap could hinder innovation in the decentralized finance sector.
The lawsuit between Bancor and Uniswap highlights the growing tensions in the decentralized finance space and the importance of protecting intellectual property in a fast-evolving technological landscape.
