Curve Finance recently publicly stated that PancakeSwap, in its newly launched Infinity protocol, is suspected of copying its stablecoin exchange core code without permission. Curve emphasized that the implementation of the stablecoin exchange mechanism is not a simple function port, but relies on highly specialized security design and long-term optimization experience. Historically, similar systems have been targeted multiple times, such as the 2022 Saddle Finance hack and the $116 million vulnerability event that occurred on Balancer in 2025, both stemming from improper implementation of liquidity pool logic. Curve uses this to remind developers and users that in the open ecosystem of decentralized finance, seemingly convenient code reuse may bury huge risks.
This controversy reflects the long-standing contradiction in the DeFi News field: on one hand, there is the innovation wave of rapid iteration and cross-chain interoperability, and on the other hand, there are compliance requirements for intellectual property rights and security responsibilities. As PancakeSwap Infinity introduces complex mechanisms such as dynamic fee rates, conditional orders, and multi-chain liquidity linking, its attack surface is also expanding simultaneously. Curve clearly links the licensing issue with the security of user funds, implying that the collaboration model of future DeFi News projects may rely more on legal frameworks and authorization mechanisms, rather than purely open-source sharing.
PancakeSwap, on the other hand, emphasizes that the Infinity upgrade significantly reduces the cost of creating liquidity pools, with a maximum reduction of 99%, aiming to incentivize cross-chain liquidity experiments and developer innovation. The protocol design focuses on flexibility, allowing for customized pool behavior while retaining the core user experience. In this context, ERC-20, as the core standard for cross-chain assets, its contract security, wallet compatibility, and the reliability of bridging mechanisms are becoming key factors affecting the stability of the entire ecosystem.
This controversy is not only a technical imitation dispute, but also an important sign of the DeFi News ecosystem moving towards maturity - when the speed of innovation surpasses the establishment of regulation and norms, how to strike a balance between openness and security, freedom and responsibility, will become a problem that all project parties and users must face.