Uniswap Forked After BSL Expiration: What Does It Mean for DeFi?

On April 5th, it was reported that Uniswap, a decentralized trading platform, had been forked by developers after its BSL expired on April 1st. It is reported that starting from April 1st of this year, the open-source code was calculated after upgrading to the V3 version in 2021, as the license is only valid for two years. According to DefiLlama data, the current TVL of PancakeSwap AMM V3 has reached $125 million.

Since Uniswap opened its code on April 1st, its fork protocol TVL has reached $125 million

Introduction

On April 5th, it was reported that Uniswap, a decentralized trading platform, had been forked by developers after its BSL expired on April 1st. It is reported that starting from April 1st of this year, the open-source code was calculated after upgrading to the V3 version in 2021, as the license is only valid for two years. According to DefiLlama data, the current TVL of PancakeSwap AMM V3 has reached $125 million. But what does this fork mean for DeFi and the wider crypto community?

What is Uniswap?

Uniswap is a decentralized trading platform that allows users to swap ERC-20 tokens and provide liquidity to earn fees. Its key feature is automated market making (AMM), which determines the price of tokens based on supply and demand. Uniswap has been a successful DeFi project, with over $5 billion in total value locked (TVL) as of April 2021.

What is BSL?

BSL (Business Source License) is a type of open-source software license that allows users to access and modify the code but restricts commercial use. According to the Uniswap BSL, anyone who wants to use the code for commercial purposes, such as creating a competing platform or offering Uniswap as a service, must obtain a license from the creators. The license is valid for two years, after which it expires.

The Fork

After the BSL expired on April 1st, some developers forked the Uniswap code to create a new platform called “Uniswap Community Edition”. This version is essentially the same as the original Uniswap, but without the BSL restrictions. The fork was not unexpected, as many in the DeFi community were unhappy with the BSL’s limitations on commercial use.

Implications for DeFi

The fork of Uniswap raises important questions about the role of licenses in open-source software and their impact on the DeFi ecosystem. Some argue that the BSL was necessary to prevent copycats from diluting the Uniswap brand and stealing its users. Others argue that open-source software should be freely available to anyone, without restrictions.
The creation of Uniswap Community Edition could lead to increased competition in the DeFi space, as more developers are able to build on the Uniswap codebase. It could also lead to greater innovation, as developers are free to experiment with new features and functionalities. However, it could also lead to fragmentation and confusion, as users and liquidity providers must decide which version to use.

Conclusion

The Uniswap fork after the expiration of its BSL has sparked debate in the DeFi community about the role of licenses and the future of open-source software. Only time will tell what the long-term effects of the fork will be, but it is clear that the DeFi space is constantly evolving and innovating.

FAQs

1. What is a fork?
A fork is when developers take the codebase of an existing project and create a new version with different features or functionalities.
2. How does Uniswap make money?
Uniswap earns fees from trades made on its platform, which are distributed to liquidity providers.
3. What is total value locked (TVL)?
TVL is a metric used to measure the amount of assets locked in a DeFi protocol, which is an indicator of its popularity and usage.