Bancor was once one of the biggest names in Crypto. In 2017, the $ 153 million picked up, one of the greatest ICOs of that time, with a promise to change how tokens could be traded.
But only a year later Uniswap was launched with a much simpler design and soon became the most important place for Tokenwaps.
Now Bancor has brought Uniswap to court, started a legal fight (patent war) that could decide whether this is about protecting ideas or simply repaying.
How it all started between Bancor and Uniswap
When Bancor was launched in 2017, this was called a Game Changer. It introduced smart tokens with built -in reserves, and his own token, BNT, was placed in the middle of every trade.
Prices were determined by mathematical formulas, but the process was not easy. People had to pack tokens, hold BNT and trust the system to manage risks. The design was complex and confusing for many users.
In 2018 Uniswap arrived with a much simpler system. Instead of smart tokens, the two-linked pools used. One side was ETH, the other was an ERC-20 token.
Prices were determined by a very simple constant product rule. Everyone can add tokens and everyone could exchange. No token sale, no extra token exposure, no packing.
This clean model quickly became popular. Developers loved Uniswap because the code was easy and easy to use.
Traders liked it because exchanging coins felt quick and directly. By 2020, Uniswap had become the most important place for Tokenhandel on Ethereum.
Songs show how far the two went apart. In May 2021, the total value of Bancor (TVL) was almost $ 2.26 billion. Today it has fallen to just $ 66.7 million.
Uniswap’s defi -growth Source: Defillama
Uniswap, on the other hand, had around $ 4.66 billion in TVL in 2021. The number has now grown to $ 5.73 billion.
How did the industry react?
In May 2025, Bancor filed a lawsuit against Uniswap Labs and the Uniswap Foundation in an American court. The claim was that Uniswap copied Bancor’s design for automated tokens waps, often called AMMs.
Bancor asked for compensation and in court to recognize his early work. Uniswap quickly replied that the case had no value, and pointed out that all his code was open and public from the first day.
That was only the beginning. The case soon caught the attention of others in Crypto.
The lawyer of Paradigm, Katie Biber, sent what an Amicus letter is called. Such instructions can sometimes help jury members think about the broader impact of a case.
Details about the Amicus -Korte | Source: X
Dan Robinson from paradigm also spoke and said that “patent wars have no room in our industry.”
The Defi Education Fund and other groups have been agreed. They argued that Bancor’s patents were too wide and looked like an attempt to take over ideas that should remain open to everyone.
The shared care was that if Bancor won, other protocols could also start complaining, so that the progress would be delayed for everyone.
What means the case for the future of Defi
The lawsuit is not only about mathematics or code. It comes years after Bancor lost his lead and had difficulty bringing users back. Due to the timing it looks less like protection and more on frustration.
After all, Bancor had the early advantage, but lost it because the design was too complex. Uniswap became the core of Ethereum’s trading layer.
Bancor’s Defi Degrowth | Source: X
For traders, the outcome can influence daily life. If Bancor’s patents are maintained, other teams can be confronted with lawsuits for the use of the same type of market design.
That would increase the costs, slow down the development and make it more expensive. If Uniswap wins, this would prove that these basic systems belong in the open air.
That would give developers the confidence to keep building without fear of lawsuits.
Ultimately, this is more than just a courtroom story. It is about two very different approaches of Crypto. Bancor tried to protect users with extra functions, but broke under stress.
Unisewap gave users simple tools and trusted them to take risks themselves. One lost ground, the other became the leader. Now the legal fight is the last card that Bancor has to play.
