HolaSwap developer started a fork from Uniswap V3 on Binance Smart Chain and ignored commercial source license restrictions on the use of source code for two years.
HolaSwap breaks Uniswap V3 copyright
HolaSwap uses Uniswap’s V3 source code, although the commercial source license protects the use of the code for the next two years. The project started on the Binance Smart Chain, and the Binance-owned blockchain replicates certain aspects of Ethereum. You can view the code on BscScan.
This is not the first time another project has cloned Uniswap’s code. During the DeFi summer peak last year, the alias developer Chef Nomi Uniswap V1 forked and started SushiSwap. As part of the project, SUSHI governance tokens were introduced and Uniswap liquidity providers were encouraged to include their tokens in the protocol. Uniswap users who supplied SushiSwap with liquidity received generous SUSHI rewards. This move allows SushiSwap to absorb much of Uniswap’s liquidity.
Shortly after the “vampire attack”, Uniswap launched its own UNI token. Since then, these two projects have been the leading DEX in the Ethereum ecosystem.
The Uniswap team seems to be purposely preventing any other project from copying the code they used after SushiSwap was released. Uniswap V3 was introduced in March and introduced a commercial source license that delayed commercial use of the code for two years. Uniswap wrote when announcing the V3 update:
“We strongly believe decentralized financial infrastructure should ultimately be free, open-source software. At the same time, we think the Uniswap community should be the first to build an ecosystem around the Uniswap v3 Core codebase.”
The license protects the rights of the original developer by copyrighting the software and issuing a license that grants legal permission to copy, distribute, or modify the code.
HolaSwap Developers Cancelled the Governance Token
HolaSwap developers cancelled the governance token to circumvent commercial use of the product. However, this license only allows “non-production use of the code”.
Uniswap and other Ethereum DEXs are unlikely to be affected by the Binance Smart Chain project. It is one of the few exchanges that does not include governance tokens for income growers. However, it is unlikely that Uniswap V3 will be cloned again in the future.
Uniswap V3 aims to help liquidity providers by increasing capital efficiency up to 4,000 times. It plans to roll out optimistic roll-up solutions Arbitrum and Optimism, which can lower transaction costs and divert liquidity from Binance smart chain projects like PancakeSwap and HolaSwap.
Due to various attacks on network projects, the Binance Smart Chain can also be affected by the migration of users to Ethereum and other chains. BurgerSwap, Uranium Finance, Meerkat Finance and Bunny Finance have all been attacked in the past few weeks, causing users to lose millions.