The decentralized finance (DeFi) landscape is heating up as Curve Finance, a leading DeFi platform, has publicly accused PancakeSwap, a popular decentralized exchange (DEX), of using its proprietary code without proper licensing.
Curve’s Accusation and the StableSwap Feature
The code in question is tied to the ‘StableSwap’ feature, a critical component for swapping stablecoins and ‘tightly-peged’ assets on PancakeSwap Infinity, the latest version of the DEX. ‘StableSwap’ is designed to optimize trading for assets with stable values, ensuring minimal price slippage and efficient trading.
The Curve team, known for its deep expertise in stablecoin trading, issued a statement on X (formerly Twitter) emphasizing the importance of proper licensing and collaboration. ‘If you want to enjoy using stableswap without legal problems and to borrow some of our expertise to keep users SAFU, you can still contact us for licensing and collaboration,’ the Curve team wrote.
The Risks of Copying Code in DeFi
Curve further highlighted the risks associated with improperly integrating complex DeFi features, citing past security breaches as cautionary tales. The 2022 hack of the Saddle Finance DEX and the $116 million hack of the DeFi protocol Balancer in 2025 are prime examples of how vulnerabilities in swap-based code can lead to significant financial losses.
The Curve team stressed that ‘deep stableswap expertise’ is crucial for safely integrating swap features, warning that unauthorized use of such code can expose users to significant risks.
PancakeSwap’s Response and Future Collaboration
The PancakeSwap team has acknowledged the allegations and expressed a willingness to reach out to Curve Finance to discuss the issue. ‘Indeed, better to be friends and build together,’ Curve responded, signaling a potential avenue for collaboration and resolution.
PancakeSwap Infinity, launched on the Arbitrum network and BNB Chain in April 2025, has introduced several innovative features, including ‘hooks’—smart contract plug-ins that allow for customized parameters in liquidity pools. These hooks enable dynamic fee structuring, tailored rebates, and on-chain limit orders, enhancing the flexibility and functionality of the platform.
Implications for the DeFi Ecosystem
This incident underscores the growing importance of intellectual property and cybersecurity in the DeFi space. As projects and protocols continue to iterate and expand their offerings, the need for clear licensing and collaboration frameworks becomes increasingly critical.
Curve Finance’s call for collaboration not only highlights the technical complexities of DeFi but also emphasizes the community-driven nature of the ecosystem. By working together, DeFi platforms can enhance security, innovation, and user trust, paving the way for a more robust and sustainable future.
Conclusion
As the DeFi landscape evolves, the Curve Finance and PancakeSwap dispute serves as a reminder of the importance of respecting intellectual property and fostering collaboration. The potential for legal and security issues in the DeFi space is significant, and addressing these challenges through dialogue and cooperation is essential for the continued growth and success of the industry.
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