Binance Founder and Former CEO Changpeng Zhao (CZ) Reveals His New Dream Project – BitRss

Changpeng Zhao (CZ), founder and former CEO of cryptocurrency exchange Binance, has brought up the idea of a remarkable project in the decentralized finance (DeFi) field.

Zhao noted that considering the current market conditions, it is time to develop a dark pool-based perpetual DEX (decentralized futures exchange).

CZ, in his post on X (formerly Twitter), pointed out that the fact that orders are public on decentralized exchanges poses serious risks for large investors. Zhao said that the market can be manipulated due to the visibility of liquidation points, especially in perpetual DEXs, and that this situation can expose users to MEV (Maximum Extractable Value) attacks, high slippage, and bad transaction prices:

“In the traditional financial world, big investors prefer dark pools because they can secretly execute large orders. For perpetual trades, this secrecy is even more important because someone who sees your liquidation level can turn the market against you.”

According to Zhao’s proposal, a next-generation DEX could solve this problem by hiding the order book or making investments in smart contracts visible with a delay. CZ argued that zero-knowledge proofs (ZK) or similar cryptographic techniques could be used in the development of this platform.

*This is not investment advice.

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