PancakeSwap (CAKE) dropped 4% on Friday as Curve Finance (CRV) publicly accused the decentralized exchange (DEX) of copying its code without permission, citing license violations.
Curve Finance accuses PancakeSwap of copying code
Decentralized finance (DeFi) protocol Curve Finance has accused PancakeSwap of copying parts of its codebase without permission, accusing it of potentially violating its license terms.
in one x post On Friday, Curve claimed that PancakeSwap had replicated parts of the proprietary implementation of its swap algorithm, which underpins low-slippage trading for stablecoins and other pegged assets.
“It looks like you copied our code without asking. It’s [a] Violation of its license. not only [is it] Illegal: “Historically it has proven unwise for those who have done it this way in other cases,” Curve Finance wrote.
The post included a screenshot from PancakeSwap’s platform. The image showed a file labeled “CLStableSwapHook”, attributed to PancakeSwap, with a comment, “TODO: What license should we use?”
The allegation comes after PancakeSwap launched the StableSwap feature on its Infinity platform on Monday. The new feature was introduced as a tool for swapping stablecoins and other tightly linked assets with low slippage and dynamic fee adjustments.
Curve introduced the Stablecoin Swap algorithm in 2020 to optimize trading between similarly priced assets, such as stablecoins. The model uses special bonding curves to reduce slippage and improve pricing efficiency.
PancakeSwap publicly responded to the allegation, saying that it had contacted the Curve team directly to discuss the matter.
CAKE and CRV are down 4% in the last 24 hours at the time of writing on Friday.
