EddieJayonCrypto
2 Jun 25
Binance founder Changpeng “CZ” Zhao proposed a new decentralized exchange (DEX) model called a "dark pool perp DEX" that conceals trades, positions, and deposits to protect traders from front-running and liquidation attacks. He highlighted issues with current perp DEXs where visible orders and liqui...
Binance founder Changpeng “CZ” Zhao has proposed an innovative decentralized exchange (DEX) model aimed at protecting traders by hiding trades, positions, and deposits to prevent front-running and liquidation attacks.Zhao pointed out significant transparency issues in current perpetual futures DEXs (perp DEXs), where visible liquidation points and orders allow malicious bots to exploit traders, increasing slippage and costs.To counter these vulnerabilities, Zhao suggested employing zero-knowledge proofs or similar encryption methods to conceal trade activities until settlement, enhancing both privacy and security.Industry experts emphasize that for such a "dark pool perp DEX" to succeed, it must be trustless, non-custodial, cross-chain, and fully decentralized, with features like atomic swaps and Hash Time Lock Contracts to ensure secure, interoperable trades.This proposal has reignited a long-standing debate within DeFi about balancing transparency with privacy, especially for institutional investors seeking to minimize risks tied to real-time order exposure.Advocates argue that implementing Zhao's vision could establish a new standard for private, institutional-grade DeFi platforms, opening the door for safer, more efficient market participation.To foster collaboration on this breakthrough concept, Zhao has invited developers to connect via his paid messaging platform, ReachMe.io, designed to filter spam and facilitate focused communication.Overall, this initiative highlights a pivotal shift toward privacy-centric DeFi infrastructure with the potential to transform how decentralized perpetual trading operates.