Bitrabo Editorial
Uniswap, a popular decentralized exchange (DEX), has released its fourth version with a range of new features and enhanced customizability. One notable feature is the introduction of “hooks,” which allows developers to expand upon existing liquidity pools. According to Sara Reynolds, the lead smart contract engineer for the project, the hooks feature offers limitless customization possibilities.
However, the release of Uniswap V4 has also generated complaints within the open-source community. The cause for concern is the Business Source License (BSL) that Uniswap has chosen to use for this version, continuing what they did in Uniswap V3. Under the BSL license, Uniswap retains exclusive rights to their innovation for the next four years.
The BSL license grants public access to the code and allows for copying, modification, and redistribution. However, it prohibits commercial or production use of the code for up to four years. After this initial period, the license will convert from BSL to a General Purpose License (GPL) indefinitely.
Crypto developers within the open-source community argue that Uniswap’s claim of being open-source is misleading due to the restrictive nature of the BSL license.
Implications Of Uniswap V4 License
Gabriel Shapiro, from Delphi Labs, expressed concerns about the BSL license. He believes it could hinder innovation and slow down development in the decentralized finance (DeFi) space. Shapiro argues that building an automated market maker (AMM) from scratch might be challenging without referencing the Uniswap V4 code.
Business Source License is a hindrance to innovation across the entire space. Any developer who has looked at BSL code, even once, and later develops something similar, risks facing a copyright claim. To avoid such claims, big tech companies implement elaborate ‘clean room’ procedures. In simple terms, it would be difficult to find a team of developers capable of coding a new AMM from scratch who have never reviewed Uniswap V4 code. This doesn’t necessarily imply infringement, but to defend against claims, they would need to prove non-infringement.
In response to the backlash, Hayden Adams, the creator of Uniswap, and his team held a YouTube livestream to address the controversy. Noah Zinsmeister, the lead engineer, defended the BSL license, stating that four years is a reasonable period to balance encouraging innovation and profiting from the project.
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