Uniswap wins lawsuit, secures DeFi open-source rights

Uniswap won a lawsuit against Bancor, with a court ruling its AMM technology can’t be exclusively patented, supporting open-source DeFi innovation.

Uniswap has secured a significant legal victory in a patent infringement lawsuit brought by organizations linked to Bancor. The dispute centered on Uniswap’s use of the constant product AMM model (xy=k), with Bancor alleging that Uniswap had infringed on its patented technology since 2018 and seeking monetary damages. Uniswap defended itself by emphasizing its open-source ethos and arguing that the patent sought to monopolize fundamental mathematical concepts. The case was heard in a New York federal court, which ultimately dismissed Bancor’s claims. This ruling is seen as a landmark win for open-source innovation in decentralized finance (DeFi), ensuring that essential DeFi protocols remain accessible to the broader community.