CHANGPENG “CZ” Zhao, co -founder of Binance, proposed to create a dark pool permanent exchange exchange (DEX) to prevent market manipulation.
On June 1, in X POST, Zhao said, “I was always embarrassed that everyone could see orders in real time in Dex.”
“The problem is worse in Perp Dex with liquidation.”
Zhao said, “If you want to buy a $ 1 billion coin, I hope you don’t know your order until others are completed.” This prevents the full run and the maximum extractable value (MEV) bot attack, which can cause a high, price and cost.
His opinion followed almost $ 100 million in Bitcoin’s long position in Hyperklicer, a merchant known as James Wynn. This event, which occurred after Bitcoin fell to less than $ 105,000, argued for X that some users had adjusted WYNN’s liquidation to “hunt”.
One X user insisted that TRON co -founder Justin Sun showed interest in participation but was not confirmed. He also invited Eric Trump, the son of President Donald Trump, to the group.
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What is a dark swimming pool?
Zhao said, “Tradfi’s large merchants use a dark swimming pool 10 times larger than traditional transparent swimming pools.
This hides the order size, price and intention to prevent full run, slide and MEV attacks. Nevertheless, to implement a decentralized dark pool, complex systems such as zero knowledge proof (ZK-Proofs) or delayed settlement mechanisms are required.
Maria Carola, the CEO of Instant Exchange StealThex, told Coinelewraph, “The fundamental task of building a dark pool style perp dex is achieving both personal information and the possibility of verification.” She pointed out that the encrypted spell matching with ZK-Proofs is a promising means for development. She added:
“I think that one specific approach is to use ZK-SNARKS or ZK-Starks to verify trade execution and consensus without revealing trade details.”
Obstacles are not essentially technical. CAROLA emphasized that “firing onchain dark pool enters a complex regulatory environment, especially for perpetuals.”
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Trade privacy is important for derivatives
Zhao argued that personal information is particularly important in the derivatives market. He said the public’s visibility on liquidation levels exposes large traders to adjusted attacks that can force early liquidation.
“If others can see your liquidation point, they can try to push the market to liquidate you. Even if you get $ 1 billion, others can gang you.”
The co -founder of the Binance has recognized that there is a controversy over this design, and the additional transparency allows market manufacturers to absorb great orders. He said that this is probably true.
“I will not go into the right and wrong debate. Other traders can prefer other types of markets.”
STEALTHEX’s Carola said, “The opaque is a double -edged sword.” To solve this, ‘Dark’perp DEX must implement adaptive risk engine and behavioral abnormal detection.
Zhao concluded by encouraging developers to start exchange of onchain dark pool decentralization with permanent swaps. He said, “You don’t show or get better, you can achieve no deposit at all in your smart contract or you can achieve it until later.
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