Bancor has initiated a lawsuit against Uniswap, claiming that the latter has infringed on its 2017 patent related to decentralized exchange (DEX) smart contract technology that facilitates automated token swaps without intermediaries. Uniswap has responded, asserting that the lawsuit is without merit and that its code has been publicly available for years.

The article discusses the economic model of Velodrome, a decentralized exchange (DEX) on Optimism, arguing that its "lockonomics" approach offers unique advantages over traditional DEX models, particularly in incentivizing long-term holding and reducing the impact of inflation on token value. It critiques misconceptions about Velodrome as a Ponzi scheme and positions its mechanisms as beneficial for fostering sustainable liquidity and governance within decentralized finance.