Curve Finance and PancakeSwap Clash Over StableSwap Code Licensing

Curve Finance Accuses PancakeSwap of Licensing Violations

The team behind Curve Finance, a leading decentralized finance (DeFi) platform, has publicly accused PancakeSwap, another major decentralized exchange (DEX), of utilizing its software code unlawfully. The contention centers on the "StableSwap" code, which PancakeSwap has integrated into its Infinity version for the exchange of stablecoins and similarly "tightly-pegged" assets.

“If you want to enjoy using StableSwap without legal problems and to borrow some of our expertise to keep users SAFE, you still can contact us for licensing and collaboration,” Curve said in a statement on social media platform X.

In another communication, Curve emphasized the necessity of "deep **stableswap expertise" to properly and safely integrate swap functionalities. They referenced past significant cybersecurity breaches, such as the 2022 Saddle Finance hack and the $116 million attack on Balancer in 2025, to highlight potential risks associated with improper use of swap codes.

In response, the PancakeSwap team expressed a willingness to engage with Curve Finance to resolve the matter amicably. Curve welcomed this approach, responding, “Indeed, better to be friends and build together.” However, efforts by Cointelegraph to get comments from both teams before publication were unsuccessful.

This incident underscores the evolving challenges in DeFi, where cybersecurity and legal issues often accompany the rapid pace of innovation and feature expansion.

PancakeSwap Infinity Expands Across Chains

PancakeSwap Infinity has launched across both the Arbitrum network and BNB Chain as of April 2025, moving forward with its innovative approach of enabling one-click, cross-chain swaps for digital assets. The upgraded DEX introduced several functionalities such as "hooks," which are smart contract plug-ins designed to allow for customized parameters within liquidity pools.

These hooks facilitate dynamic fee structuring, custom rebates, and on-chain limit orders, which are executed contingent upon meeting pre-established conditions. Importantly, the upgrade also marked a significant reduction in pool creation fees by up to 99%, adapting to diverse liquidity strategies implemented by PancakeSwap.

Furthermore, in July 2025, PancakeSwap Infinity extended its reach by launching on Base, an Ethereum layer-2 (L2) scaling network. Promising trading fees up to 50% cheaper, especially when Ether (ETH) is traded against ERC-20 tokens, the platform offered enhanced economic viability for its users.

The ERC-20 token standard is widely adopted for creating assets on Ethereum, encompassing both gas and governance tokens on Ethereum L2s, alongside various memecoins and tokens issued by different projects on the network.

Coinasity's Take

The ongoing dispute between Curve Finance and PancakeSwap highlights the intricate balance between innovation and adherence to legal and ethical standards in the DeFi space. As platforms evolve and compete, maintaining dialog and cooperation becomes crucial to ensuring ecosystem security and growth. PancakeSwap's willingness to collaborate with Curve could set a constructive precedent for resolving similar conflicts in the decentralized finance domain.