Bancor, a decentralized exchange, has initiated a lawsuit against Uniswap for allegedly infringing on its patented technology related to automated market makers. The lawsuit, filed in the US District Court for the Southern District of New York, claims that Uniswap has utilized Bancor's technology without authorization, leading to unfair competition and significant profit for Uniswap. Bancor developed the patented technology in 2016 and secured the patent in January 2017, which serves as the foundation for the 'constant product automated market maker' model used in liquidity pools. Uniswap, considered a major competitor in the decentralized finance (DeFi) sector, launched its protocol in November 2018, allegedly based on Bancor's inventions. Despite Uniswap's dominance in the DEX market, with a significant trading volume of nearly $3.8 billion, Bancor has struggled, ranking at No. 142 with a trading volume of $378,579. Bancor's project lead, Mark Richardson, emphasized the need to protect their innovations to foster a healthy competitive environment in DeFi.

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