Binance Founder CZ Proposes Dark Pool DEX for Crypto Futures Trading
The post Binance Founder CZ Proposes Dark Pool DEX for Crypto Futures Trading appeared on BitcoinEthereumNews.com.
TLDR Binance founder Changpeng Zhao (CZ) has proposed creating an on-chain dark pool DEX for crypto futures trading The proposal comes after trader James Wynn lost $100 million due to market manipulation Current DEXs expose traders to front-running, MEV attacks, and coordinated liquidations CZ suggests implementing concealed order books and zero-knowledge proofs for privacy Experts believe this approach could enable institutional-grade DeFi trading Binance founder Changpeng Zhao (CZ) has called for the development of a “dark pool” decentralized exchange (DEX) for cryptocurrency futures trading. This proposal comes in response to growing concerns about privacy and market manipulation in the current DEX ecosystem. CZ made his proposal on X (formerly Twitter), stating, “Given recent events, I think now might be a good time for someone to launch a dark pool perp DEX.” His suggestion follows crypto trader James Wynn’s recent $100 million loss from liquidations on high-leverage Bitcoin positions. The Binance founder pointed out major flaws in existing DEX platforms. He explained that the real-time visibility of trades creates opportunities for front-running and maximal extractable value (MEV) attacks, where observers can exploit visible orders to execute trades ahead of large buyers. This transparency issue is especially problematic in perpetual futures trading. When liquidation points are publicly visible, it can lead to coordinated efforts to push prices and trigger these liquidations. “If others can see your liquidation point, they could try to push the market to liquidate you,” CZ wrote. “Even if you got a billion dollars, others can gang up on you.” Given recent events, I think now might be a good time for someone to launch a dark pool perp DEX. I have always been puzzled with the fact that everyone can see your orders in real-time on a DEX. The problem is worse on a perp DEX where there…
