Highlights How Bancor’s Invention Revolutionized Decentralized Finance by Making a Fully Functional Decentralized Exchange a Reality
Shows That Uniswap Has Been Infringing Bancor’s Patents and Seeks Damages
ZUG, Switzerland--(BUSINESS WIRE)--Bprotocol Foundation, a non-profit foundation dedicated to promoting the development and adoption of the Bancor Protocol, and LocalCoin Ltd. (“LocalCoin”), the original developer of the Bancor Protocol, today announced that they have filed a lawsuit in the United States District Court for the Southern District of New York (the “Court”) against Uniswap Labs and Uniswap Foundation (collectively, “Uniswap”) for infringing Bancor patents directed to smart contract structures and technologies that enable decentralized trading. Bprotocol Foundation and LocalCoin are seeking damages for Uniswap’s unauthorized use of their patented technology, which is the fundamental technology that underlies the constant product automated market maker (“CPAMM”) powering the Uniswap Protocol.
Invented in 2016, Bancor’s revolutionary technology was designed to replace the traditional order books and market makers of centralized exchanges using a smart contract structure that acts as an “automated market maker” for decentralized platforms. Bancor filed a patent application for the technology on January 8, 2017, and used the smart contract structure to build the Bancor Protocol, the first fully decentralized exchange powered by automated market makers.
Mark Richardson, Project Lead at Bancor, commented:
“Bancor’s patented technology is one of the most important innovations in blockchain, and we are exceptionally proud of the role it has played in revolutionizing the world of decentralized finance. By making decentralized exchanges a reality, Bancor’s invention has forever changed how cryptocurrencies are traded. Since developing this technology, Bancor’s mission has always been the same: to bring innovative inventions to DeFi that push the boundaries of what’s possible.
However, when an organization continuously uses our invention without our authorization and does so as a means of competing with us, we must take action. For the last eight years, Uniswap has been using our patented technology in its projects without our permission. As a result, we have taken legal action to defend our technology for the good of the entire DeFi community.
As innovators and inventors, protecting our intellectual property is fundamental to the health of the ecosystem. If companies like Uniswap can act unchecked without consequence, we fear it will hinder innovation across the industry to the detriment of all DeFi players.”
Key Facts:
- In 2016, Bancor invented the smart contract structures that enable buyers and sellers to transact in a liquid and reliable manner without the need for a centralized intermediary.
- On January 8, 2017, Bancor filed a provisional patent application describing its innovative technology and associated smart contract structures employing such technology. The application was filed with the U.S. Patent Office and subsequently led to two issued patents.
- Bprotocol Foundation and LocalCoin own all rights related to the invention, and Bancor released a white paper explaining the invention in February 2017.
- The Bancor Protocol was built using the invention and launched on June 12, 2017. It was the first fully decentralized exchange (DEX) powered by automated market makers, specifically the first implementation that has come to be known as CPAMM.
- Uniswap Labs later used the patented invention to create its own competing protocol – the Uniswap Protocol.
- In November 2018, Uniswap Labs launched v1 of the Uniswap Protocol and has continually operated an infringing CPAMM via the Uniswap Interface since that time, most recently announcing the launch of v4 of the Uniswap Protocol.
- Uniswap Labs has used the patented invention without authorization, license or partnership from Bprotocol Foundation or LocalCoin, and has profited greatly.
- With this lawsuit, Bprotocol Foundation and LocalCoin seek compensation for Uniswap Labs’ unlicensed use of Bancor’s patented technology and Uniswap Foundation’s inducement of infringement.
About Bancor
Bancor has always been at the forefront of DeFi innovation, beginning in 2017 with the invention of bonding curves, pool tokens, and the exchange systems which emerge therefrom. Bancor revolutionized the world of DeFi by launching the Bancor Protocol, the first fully decentralized exchange powered by automated market makers. Learn more at bancor.network.
About Bprotocol Foundation
Bprotocol Foundation is a non-profit organization dedicated to promoting the development and adoption of the Bancor Protocol. Founded in 2017, the foundation has a mandate to safeguard the Bancor community and its interests.
About LocalCoin
LocalCoin is a digital asset laboratory and software development company building innovative products ranging from blockchain infrastructure to fully integrated consumer applications. It is the original developer of the Bancor Protocol.
Contacts
Media
Longacre Square Partners
Greg Marose / Kate Sylvester, 646-386-0091
bprotocol@longacresquare.com