Curve Finance took to X to directly accuse PancakeSwap of using its StableSwap code in the PancakeSwap Infinity upgrade without proper authorization. The accusation immediately sparked a heated debate across the decentralized finance community, touching on code ownership, security vulnerabilities, and intellectual property rights.
Curve's Open Invitation: License the Code or Face Risks
Curve wrote on X: "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." PancakeSwap responded cautiously, promising to reach out, stating "Indeed, better to be friends and build together." Curve later acknowledged the outreach. The core of the dispute is the StableSwap algorithm integrated into Infinity, which enables efficient trades between stablecoins and tightly pegged assets with low slippage. Curve stressed that proper integration requires deep technical understanding. It cited the 2022 Saddle Finance exploit and the 2025 Balancer hack that caused over $116 million in losses as warnings that poorly implemented swap mechanisms can expose users to serious security risks.
Open Source Dilemma: Reuse vs. Responsibility
Curve emphasized that "deep stableswap expertise" is essential for protecting liquidity pools. While some developers agreed, others questioned whether Curve has the right to restrict the use of its open-source code. The incident underscores the core tension in DeFi's evolution from rapid forks to a more compliance-driven era: balancing open innovation with responsible code governance is no longer optional.
PancakeSwap Infinity's Expansion Under a Cloud
The controversy comes amid PancakeSwap's aggressive growth. PancakeSwap Infinity launched in April 2025 on Arbitrum and BNB Chain, introducing cross-chain swaps, advanced liquidity pools, modular architecture, and customizable smart contract "hooks" for fee adjustments, rebates, and onchain limit orders. The upgrade cut liquidity pool creation fees by up to 99% to attract new developers and liquidity strategies. In July 2025, Infinity expanded to Base, promising up to 50% cheaper trades for ETH-ERC-20 pairs. Yet the code licensing dispute now casts a shadow over this expansion narrative. Will the accusation affect PancakeSwap's future partnerships? Will Curve take legal action? Both sides remain tight-lipped on next steps, but the community is already rethinking the assumption that open source equals free commercial use in DeFi.