The stablecoin-focused decentralised exchange, Curve Finance, has accused PancakeSwap of using its proprietary code to back the StableSwap function without having permission.
The accusation was made on March 6 on X, where the Curve team highlighted that this action shows a direct breach of the StableSwap licence, alerting to the legal and technical risks associated with replicating financial software without the proper regulatory framework.
The X post of Curve Finance mentioned that, “Dear PancakeSwap. Looks like you copied out code without permission. It is a violation of its licence. Not only is it illegal, but historically it has shown to be unwise for those who did it this way in other regards.
It further added that in any case. 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.”
The post was made in reply to the X post made by PancakeSwap on March 2 mentioning, “Introducing better prices for swapping stablecoins and tightly pegged assets, and Stableswap is now live on PancakeSwap Infinity.”
Settlement or Collaboration: What Will The Market Witness
Quickly after the complaint, the DeFi ecosystem witnessed a brief shock, as PancakeSwap had just executed said technology on its “Infinity” platform to provide stablecoin swaps having ultra-low slippage.
Replying to the public pressure, PancakeSwap accepted that it has so far started private talks to settle the dispute, while Curve softened its primary stance by recommending a possible strategic collaboration under the motto “build together”.
In the near future, the market will be able to witness if both decentralised giants manage to formalise an official licensing agreement or a technical alliance. The settlement of this conflict will set a prominent precedent concerning the safeguarding of intellectual property in open source, while users hope that this amalgamation does not compromise the security of the liquidity pools of the network.
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