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Uniswap wins CPAMM patent lawsuit against Bancor

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Uniswap wins CPAMM patent lawsuit against Bancor

Uniswap has won a patent infringement lawsuit filed by organizations connected to Bancor, marking a major legal victory for the decentralized exchange and the wider decentralized finance sector.

Summary

  • Uniswap won a patent infringement lawsuit filed by Bancor-linked entities in a U.S. federal court.
  • The case focused on the constant product market maker formula used in decentralized trading.
  • The ruling supports open-source development and limits patent claims over core DeFi tools.

On Feb. 11, Uniswap founder Hayden Adams said on X that his legal team had informed him of the court’s decision in Uniswap’s favor. The case had challenged the technology that powers automated token trading on the platform.

Many people in the crypto world paid close attention to the lawsuit because it brought up a bigger issue. It questioned whether simple trading formulas used in DeFi can actually be protected by patents.

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Lawsuit focused on AMM technology

The legal fight started in May 2025. Bprotocol Foundation and LocalCoin Ltd., both connected to Bancor, filed a lawsuit in a federal court in New York. They claimed that Uniswap Labs and the Uniswap Foundation used a trading method that was covered by a patent granted back in 2017.

The patent covered the constant product automated market maker model, commonly known for the formula x*y=k. This system is used to price tokens in liquidity pools and has become a foundation of many decentralized exchanges.

Bancor argued that Uniswap (UNI) had relied on this patented method since launching in 2018 without permission. The plaintiffs sought financial damages for several years of alleged unauthorized use.

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Uniswap strongly rejected the claims from the start. The company said its code had always been open-source and publicly available. It also argued that the patent attempted to claim ownership over basic mathematical principles applied to blockchain systems.

Several industry groups supported Uniswap’s position. Organizations such as the DeFi Education Fund and the Solana Institute filed statements backing the exchange and warning against using patents to restrict open innovation.

Impact on DeFi and open-source development

According to people familiar with the case, the court found that the allegations did not meet the legal standard required for patent infringement, especially given the open nature of Uniswap’s software.

Legal experts say the ruling sends a strong message to the market. Core financial mechanisms that rely on simple formulas may be difficult to protect through patents when they are openly shared and widely adopted.

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Many developers see this outcome as a strong moment for open finance. It sends a message that the basic tools behind DeFi cannot easily be restricted or put behind paywalls through patents.

Uniswap users and its partners can also breathe a little easier. The uncertainty surrounding the case had raised concerns about possible setbacks. If the court had ruled differently, it might have slowed down new features and partnerships across the wider ecosystem.

So far, there has been no word of an appeal. For now, the matter seems to be settled at the district court stage.

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Crypto World

$80M Hyperliquid Whale Bet Predicts Bitcoin Crash and Oil Rally

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$80M Hyperliquid Whale Bet Predicts Bitcoin Crash and Oil Rally

Key takeaways:

  • A Hyperliquid whale placed an $80 million bet against Bitcoin and the S&P 500 while going long on Brent crude oil prices.

  • The whale’s history of massive losses and inconsistent signals suggests the trade could fall on the wrong side of the market.

Bitcoin (BTC) showed strength on Wednesday, bouncing back from Tuesday’s $66,000 low after President Donald Trump teased a potential ceasefire in the US and Israel-Iran war. Even with Bitcoin trading above $68,000, one whale used Hyperliquid DEX to place an $80 million bet on a market collapse. 

Traders are now watching closely to see if this whale’s massive position signals a looming Bitcoin price drop.

Hyperliquid whale 0x94d373…c933814 position. Source: CoinGlass

The Hyperliquid whale, linked to address 0x94d373…c933814, carefully built this nearly $80 million leveraged position between Tuesday and Wednesday. The trade includes a $40 million short (sell) on Bitcoin futures near $68,760, a $2 million short on synthetic S&P 500 Index contracts, and a $37 million long (buy) in synthetic Brent oil contracts.

Crude Brent oil (left) vs. Bitcoin/USD (right). Source: TradingView

The whale’s aggregate position leverage stood at 7 times, indicating high conviction. The Bitcoin futures liquidation price was $80,083, while the Brent oil position would be forcefully terminated above $93. The timing of the trade is curious as S&P 500 Index futures gained 4% between Tuesday and Wednesday as traders anticipate the US and Israel-Iran war dissipating over the next few weeks.

On Wednesday, President Trump said “Iran’s New Regime President” is considering a “ceasefire,” although the conditions to fully reopen the Strait of Hormuz remain unknown. Iran demands reparations and sovereignty. Thus, one could assume that the Hyperliquid whale is counter-trading the market’s optimistic take, betting that Brent crude oil prices will jump while Bitcoin loses its value.

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This Hyperliquid whale previously lost $40 million

This address belongs to a particularly unlucky whale, or at least one who has been extremely unsuccessful since late January. The Hyperliquid whale apparently uses bots for execution, given the sheer number of small trades that build into huge positions, but it still managed to lose $37 million in its first month of activity in December 2025.

The same user was flagged by X user ‘lookonchain’ on Feb. 5 after taking a massive loss on leveraged bullish bets on Ether (ETH), Bitcoin, Solana (SOL), and XRP (XRP). 

Source: X/lookonchain

According to the analysis, the whale had previously made $25 million in profits from shorts in multiple cryptocurrencies, but decided to flip the position on Feb. 4, resulting in a $40 million loss. There is no way to know exactly what triggered this entity to place those bets, but the event proves that even whales can misinterpret the market.

Related: Warren Buffett bought $17B in US T-bills: A bad omen for Bitcoin price?

The erratic signals from President Trump regarding a potential full-on invasion and the war in Iran leave room for opposing views. Iranian Foreign Minister Abbas Araghchi denied there were talks for a ceasefire but confirmed to Al Jazeera on Tuesday that there was an intention to end the war, according to CNBC.

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Given the history of this whale’s market positioning and its track record of losing trades, it’s possible that the current $80 million bet may fall on the wrong side of the market.