Curve Finance accuses PancakeSwap of using its code without licensing, particularly regarding the StableSwap feature. Highlights technical expertise needed
Legal Dispute Over Code Usage
The Curve Finance decentralized finance (DeFi) platform has accused PancakeSwap, a decentralized exchange (DEX), of using its code without proper licensing. This allegation centers on the "StableSwap" feature, which is crucial for swapping stablecoins and "tightly-pegged" assets on PancakeSwap Infinity, the latest iteration of the PancakeSwap DEX. The Curve team has stated, "If you want to enjoy using stableswap without legal problems and to borrow some of our expertise to keep users SAFU, you still can contact us for licensing and collaboration." This statement underscores the potential legal and technical implications of using proprietary code without permission.
Technical Expertise and Past Incidents
In a separate post, Curve highlighted the necessity of "deep stableswap expertise" for safely integrating swap features. They cited two notable incidents: the 2022 hack of Saddle Finance DEX and the $116 million hack of a DeFi protocol in 2025. These hacks, both involving swap-based code, demonstrate the critical nature of secure coding practices in the DeFi space. The Curve team’s emphasis on the importance of their expertise suggests that the security and integrity of DeFi protocols heavily rely on such technical know-how.
PancakeSwap's Response and Future Plans
In response to the accusation, the PancakeSwap team has stated, "Indeed, better to be friends and build together." They have indicated that they will reach out to Curve Finance to discuss the issue. This approach reflects a collaborative spirit in the face of legal and technical challenges, aiming to address the concerns and potentially find a mutually beneficial solution.
PancakeSwap Infinity: A Technological Upgrade
The incident involving the dispute over code usage comes at a time when PancakeSwap is expanding its capabilities. Launched in April 2025, PancakeSwap Infinity is the latest version of the PancakeSwap DEX, built on the Arbitrum network and BNB Chain. This upgrade introduced "hooks," smart contract plug-ins that customize liquidity pool parameters, including dynamic fee structuring, tailored rebates, and onchain limit orders that execute when preset conditions are met. These enhancements aim to provide users with a more flexible and efficient trading experience.
Network Expansion and Fee Reduction
PancakeSwap Infinity has also lowered pool creation fees by up to 99%, making it more accessible for users and developers. The upgrade was designed to accommodate various liquidity strategies and ensure that the DEX can support a wide range of use cases. Additionally, the DEX has demonstrated the capability to launch on different blockchain networks, such as Base, an Ethereum layer-2 (L2) scaling network. When trading Ether (ETH) against ERC-20 tokens, PancakeSwap Infinity offered up to 50% cheaper trading fees, making it a competitive player in the DeFi space.
In summary, the legal dispute between Curve Finance and PancakeSwap highlights the complex interplay of legal and technical challenges in the rapidly evolving DeFi landscape. As more projects iterate on existing features and expand into new territories, the need for robust legal frameworks and technical expertise becomes increasingly apparent.
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