PancakeSwap Faces Code Theft Allegations from Curve Finance
Curve Finance has informed PancakeSwap that proper licensing procedures must be followed before utilizing any code developed by the Curve team for collaborative purposes.
Developers behind the decentralized finance (DeFi) platform Curve Finance have levied allegations against the PancakeSwap decentralized exchange (DEX), claiming unauthorized use of proprietary code without appropriate licensing agreements.
The disputed code relates to the "StableSwap" functionality employed for exchanging stablecoins and assets with "tightly-pegged" values on PancakeSwap Infinity, which represents the most recent iteration of the PancakeSwap DEX platform.
"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," the Curve team said on X.
Through an additional post on social media, Curve emphasized that "deep stableswap expertise" is essential for secure integration of swap functionalities, referencing the 2022 security breach affecting the Saddle Finance DEX alongside the $116 million exploit of DeFi protocol Balancer in 2025 as prime illustrations of vulnerabilities in swap-related code implementations.
PancakeSwap's development team responded by stating they would initiate contact with Curve Finance to address the matter. "Indeed, better to be friends and build together," the Curve team responded.
Cointelegraph reached out to both teams but did not receive a response by the time of publication.
This situation underscores the possible cybersecurity threats and legal complications that emerge within decentralized finance ecosystems as various projects and protocols persistently develop new iterations of their products while expanding their feature offerings.
PancakeSwap Infinity launches and goes cross-chain
The launch of PancakeSwap Infinity occurred on both the Arbitrum network and BNB Chain during April 2025, coming after the implementation of one-click, cross-chain swap functionality enabling users to transfer digital assets seamlessly between different blockchain protocols.
This upgraded DEX platform introduced "hooks," which are smart contract plug-ins designed to customize various parameters for liquidity pools, encompassing dynamic fee structuring capabilities, tailored rebates for users, and onchain limit orders that trigger execution when predetermined conditions are satisfied.
This comprehensive upgrade also reduced pool creation fees by as much as 99% and was engineered to support various liquidity strategies, based on information provided by PancakeSwap.
During July 2025, PancakeSwap Infinity expanded its deployment to Base, which operates as an Ethereum layer-2 (L2) scaling network, and advertised trading fees reduced by up to 50% when Ether (ETH), the native token of the Ethereum layer-1 blockchain network, was traded against ERC-20 tokens.
The ERC-20 standard represents the token framework for the majority of assets created on Ethereum, which includes the gas and governance tokens of Ethereum L2s, memecoins, and additional projects that issue their tokens on the Ethereum blockchain.