Recently, I saw that there has been a discussion about a dispute between Curve Finance and PancakeSwap regarding code usage. The issue is that Curve Finance claims PancakeSwap is using the StableSwap code without a license. Even in the world of decentralized exchange development, problems related to open-source licenses are probably unavoidable.

According to the Curve team, the problem is that the stablecoin swap functionality implemented in the PancakeSwap Infinity upgrade is using their technology without permission. This issue, publicly pointed out in March, is not just a matter of attribution but highlights fundamental licensing compliance challenges. Curve has shown code comparisons and pointed out that, although PancakeSwap appears to be credited as the author, the underlying logic originates from the StableSwap design.

StableSwap is a mechanism that enables efficient trading between stablecoins and assets that are strictly pegged. It uses a mathematical approach combining constant product and constant sum curves to minimize slippage while maintaining price stability. This technology is especially important in the development of decentralized exchanges.

On the other hand, PancakeSwap has acknowledged the issue and stated that they have contacted Curve Finance directly. They are showing a willingness to cooperate rather than escalate the conflict. Curve has responded accordingly, leaving room for discussion.

What’s particularly noteworthy here are the security concerns. As Curve warns, copying complex swap logic without sufficient understanding can introduce vulnerabilities. In fact, Saddle Finance suffered a major hack in 2022 due to vulnerabilities related to swap logic, and Balancer experienced losses of about $116 million in 2025. Improper implementation can expose liquidity pools to attack risks.

This dispute illustrates the industry reality that, while DeFi developers accelerate code reuse, license compliance and security verification can often be neglected. Open source does not mean unlimited use. As decentralized exchange development evolves, legal and technical responsibility issues will become increasingly important.