Bancor has initiated legal proceedings against Uniswap, accusing the company of violating patent rights regarding automated token swaps. This case may significantly impact the future of decentralized finance (DeFi).
How the Issues Began Between Bancor and Uniswap
Bancor launched in 2017, raising $153 million in one of the largest ICOs of its time. The product promised to change the approach to token trading, but its complex structure did not meet user expectations. The popularity of Uniswap, launched in 2018 with a simple design, led to a decline in Bancor's influence. Currently, the total value locked in Bancor has dropped from $2.26 billion to $66.7 million, while Uniswap's figure has increased from $4.66 billion to $5.73 billion.
Industry Response to Bancor's Lawsuit
In May 2025, Bancor filed a lawsuit against Uniswap Labs and Uniswap Foundation, claiming that Uniswap copied their design for automated token swaps. Uniswap responded by stating that its platform's code was open and public from the very beginning. This case attracted attention from other players in the crypto industry, who fear that a victory for Bancor could lead to a wave of lawsuits against similar projects, slowing down the development of the entire sector.
What the Case Means for DeFi's Future
The lawsuit is not just a technical question about code and patents. It also reflects the challenges in approaches to developing DeFi products. Uniswap's success, based on simplicity and accessibility, contrasts with Bancor's approach, which aims to protect users but has lost ground. The outcome of the legal proceedings could significantly influence the cost and availability of tokens and add further complications for developers in the future.
The legal battle between Bancor and Uniswap highlights broader issues within the DeFi ecosystem, illustrating how the future of many projects may depend on the outcomes of Bancor's patent claims.
