DEF purchases patent at center of suits against MakerDAO and Compound

The patent in question is a “method and system for separating storage and process of a computerized ledger for improved function”

article-image

DeFi Education Fund and Adobe stock modified by Blockworks

share

The DeFi Education Fund said it purchased a patent from True Return Systems that will end litigation against MakerDAO and Compound Protocol.

The patent in question is a “method and system for separating storage and process of a computerized ledger for improved function.” The patent was approved by the US Patent and Trademark Office back in 2018. 

On Monday, DEF said it had “reached an agreement” to purchase the patent from TRS, leading to the immediate dismissal of the cases. 

Read more from our opinion section: Crypto can benefit from patents without losing its open source ethos 

DEF said it plans to dedicate the patent to the public to avoid it being used against any other projects deploying oracle technology. 

Loading Tweet..

“Today, we are pleased to announce that we have purchased the patent held by True Return Systems that claims the invention of oracle-like technology and was being used to sue MakerDAO and Compound. As a result of our settlement with TRS, TRS will dismiss the legal proceedings against MakerDAO and Compound Protocol,” Amanda Tuminelli, chief legal officer at DEF, said in a statement. 

True Return Systems and patent inventor Jack Fonss accused both MakerDAO and Compound of patent infringement. They claimed that the patent covered systems linking off-chain data to a blockchain. The company launched its suits against both Maker and Compound in the fall of 2022. 

According to the patent page, it covers the “system, method and computer readable storage medium for storing, creating, monitoring, managing, and modifying measurement, descriptive differences and parameters of the records of distributed computerized ledgers works through a separation and linkage of stacked modular data storage and processing.”

Tuminelli, in an X post last September, said that TRS had previously attempted to sell the patent as an NFT on OpenSea “for millions of dollars.” The OpenSea page shows that the patent was initially listed for 2,250 WETH, or $6 million in today’s conversion. It was lowered to 1,250 WETH ($3.3 million) three years ago, but no offers near that range were made. 

“Patenting technology that is widely used, like oracle technology, is antithetical to the ethos of open-source software development. And as anyone with access to GitHub knows, TRS was absolutely not the first to ‘invent’ this technology,” she wrote

True Return Systems filed a voluntary dismissal of its suits against both Maker and Compound.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates (3).png

Research

Pear Protocol has proven its market fit through its pair-trading infrastructure, sustaining consistent trading activity despite recent headwinds. Its strategic pivot toward Hyperliquid integration represents a major growth catalyst amid industry consolidation. While short-term token unlocks present challenges, current valuations and liquidity conditions may offer compelling opportunities for investors.

article-image

The House embraces crypto — but keeps the fences up

article-image

The network got slower in June — and it wasn’t for tech-related reasons

article-image

After a jittery few months, recent economic data is hinting at a resilient economy that is beginning to re-accelerate

article-image

The stablecoin bill now heads to the president’s desk

article-image

The House on Thursday passed the CLARITY Act, a landmark cryptocurrency market structure bill

article-image

Interchain Labs will focus on sovereign L1s and institutional demand, abandoning plans for smart contracts on the Cosmos Hub