Binance co-founder Changpeng “CZ” Zhao has called for a dark pool perpetual swap DEX to address critical flaws in crypto trading infrastructure. The proposal targets privacy gaps and MEV attacks, highlighted by Hyperliquid’s $100M liquidation incident, which exposed vulnerabilities for institutional players.

Current public blockchains force large traders into visibility, deterring sophisticated capital. CZ’s vision uses zero-knowledge proofs or MPC to conceal orders until execution, balancing privacy against manipulation risks. This reflects growing institutional demand for confidential, large-scale settlement.

The push signals Web3’s need to evolve beyond transparent-by-default models, prioritizing execution security to attract serious capital while navigating transparency trade-offs.

source: Blockchain24

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