Curve Claims PancakeSwap Used StableSwap Code Without…
What Triggered the Dispute Between Curve and PancakeSwap?
The team behind the Curve Finance decentralized finance platform has accused the PancakeSwap decentralized exchange of using its StableSwap code without proper licensing. The dispute centers on PancakeSwap Infinity, the latest version of the exchange, which introduced new functionality for swapping stablecoins and tightly pegged assets.
Curve said the StableSwap design powering these trades was originally developed by its team and requires licensing for external use. In a public statement on X, the Curve team wrote: “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.”
StableSwap is widely used across decentralized finance because it allows efficient trading between assets that track similar prices, such as stablecoins. Curve’s implementation helped popularize this model by reducing slippage and improving pricing for large swaps between tightly correlated tokens.
Investor Takeaway
Why Curve Says StableSwap Requires Specialized Expertise
In a separate post, Curve argued that integrating StableSwap functionality requires deep technical knowledge to avoid vulnerabilities. The team warned that improper implementation can expose protocols to serious security risks.
To illustrate the risks, Curve pointed to earlier incidents involving swap-based code exploits. These include the 2022 hack of the Saddle Finance decentralized exchange and the $116 million exploit of DeFi protocol Balancer in 2025.
The message was not entirely confrontational. After PancakeSwap said it would contact Curve to discuss the matter, the Curve team replied publicly: “Indeed, better to be friends and build together.”
Neither project provided further comments at the time of publication. Requests for clarification from both teams had not received responses.
How PancakeSwap Infinity Expanded the DEX
PancakeSwap Infinity launched in April 2025 on BNB Chain and the Arbitrum network. The release introduced a broader redesign of the decentralized exchange and expanded its functionality beyond simple token swaps.
One major addition was cross-chain trading with one-click swaps that allow users to move assets between blockchain networks. The upgrade also introduced “hooks,” which are smart contract plug-ins that modify liquidity pool behavior. These hooks enable features such as dynamic fees, liquidity incentives, customized rebates, and onchain limit orders that trigger when specific conditions are met.
The redesign also reduced pool creation fees by up to 99%, according to PancakeSwap, allowing developers and liquidity providers to launch pools with fewer upfront costs. The platform also expanded the range of liquidity strategies available to pool creators.
Investor Takeaway
What the Expansion Means for Ethereum Ecosystem Trading
PancakeSwap Infinity continued expanding after its initial launch. In July 2025, the platform deployed the system on Base, an Ethereum layer-2 scaling network. The rollout included claims of up to 50% cheaper trading fees when Ether was swapped against ERC-20 tokens.
ERC-20 remains the primary token standard for assets issued on Ethereum. It supports a wide range of tokens, including governance tokens, memecoins, and assets used within layer-2 ecosystems.
The latest dispute highlights a broader tension within decentralized finance. Protocols regularly build on open-source foundations while competing aggressively on features, liquidity, and user experience. As platforms expand functionality across multiple chains, questions around licensing, attribution, and security responsibility are becoming harder to ignore.
How projects handle these disputes could influence both collaboration and competition in the next phase of DeFi infrastructure development.
