Curve Finance has accused PancakeSwap of using its StableSwap code without permission, raising a licensing dispute between two major decentralized finance platforms.
Quick Summary – TLDR:
- Curve Finance claims PancakeSwap copied parts of its StableSwap code without authorization.
- PancakeSwap launched a new StableSwap feature on March 1 aimed at improving stablecoin trading efficiency.
- Both projects have signaled interest in resolving the issue through discussion and possible licensing.
- The dispute highlights ongoing tensions around code licensing in the decentralized finance ecosystem.
What Happened?
Curve Finance publicly accused PancakeSwap of copying its StableSwap code without permission. The allegation surfaced in a post on X on March 6, where Curve claimed the decentralized exchange reused parts of its algorithm without complying with licensing requirements.
PancakeSwap responded shortly after the accusation, stating that its team would reach out to Curve directly to discuss the issue. So far, both sides appear open to resolving the matter through cooperation rather than legal action.
Curve Raises Concerns Over Code Licensing
The dispute centers on StableSwap, a well known automated market maker model developed by Curve Finance. The system is specifically designed to improve trading between stablecoins and other tightly pegged assets by reducing slippage and maintaining more stable pricing during swaps.
In its public message, Curve wrote:
“Looks like you copied our code without asking. It is violation of its license. Not only it is illegal: historically it showed to be unwise for those who did it this way in other regards.”
Dear @PancakeSwap. Looks like you copied our code without asking. It is violation of its license. Not only it is illegal: historically it showed to be unwise for those who did it this way in other regards.
— Curve Finance (@CurveFinance) March 6, 2026
In any case. If you want to enjoy using stableswap without legal… https://t.co/HkWWAQGXfs pic.twitter.com/UbIi7dpfkB
Curve also shared a screenshot that appeared to highlight parts of the code involved in the dispute. According to the team, the file attribution listed PancakeSwap as the author even though the logic behind the system originated from Curve’s StableSwap design.
Although Curve’s smart contracts are publicly available as open-source software, the project said the license still requires proper attribution and compliance with its terms. Curve warned that previous projects that reused the code improperly later faced technical and security issues.
PancakeSwap Responds After Launching StableSwap Feature
The timing of the accusation comes shortly after PancakeSwap launched its StableSwap feature on March 1. The update was introduced to improve pricing for stablecoin trading pairs and provide lower slippage and dynamic fees for users.
PancakeSwap acknowledged the concern and replied publicly:
“We’re reaching out to your team directly to discuss this.”
Hey @CurveFinance, we’re reaching out to your team directly to discuss this.
— PancakeSwap (@PancakeSwap) March 6, 2026
The decentralized exchange currently holds around $2 billion in total value locked, according to data from DeFiLlama. This makes it one of the largest decentralized exchanges in the industry and the second largest behind Uniswap.
Market reaction was limited but noticeable. PancakeSwap’s CAKE token declined about 4 percent over 24 hours following the allegation, though the token remains up over the past week.
Licensing Questions Around StableSwap Code
Part of the dispute may involve which version of Curve’s code PancakeSwap allegedly used. The original StableSwap algorithm was released under a more permissive open source license, while newer versions such as stableswap ng use a Business Source License that restricts commercial use for a period of time.
Determining which code version was implemented and when it was copied will likely be central to the licensing discussion between the two teams.
This is not the first time Curve has raised concerns about code usage. The protocol previously made similar accusations against Saddle Finance in 2021, after that project launched its own StableSwap implementation.
Despite the tension, Curve indicated it prefers collaboration rather than conflict. The team suggested PancakeSwap could obtain a proper license and potentially work together moving forward.
SQ Magazine Takeaway
In my view, this situation highlights a deeper issue in decentralized finance. Open source innovation drives the entire DeFi ecosystem, but it also creates confusion about where collaboration ends and license violations begin.
Projects often build on each other’s work, which helps the industry grow faster. At the same time, developers who create foundational technologies want recognition and protection for their contributions. If both teams choose cooperation instead of confrontation, this could turn into a positive example of how DeFi projects resolve disputes while still pushing innovation forward.
