Co -founder of Binance Changpeng “CZ” Zhao proposed to create a murky pool exchanged exchange (DEX) to prevent market manipulation.
In June 1 x postZhao said that “he was always surprised by the fact that everyone could see your orders in real time in Dex.”
“The problem is worse at Perc Dex, where there are liquidations,” he said.
Zhao added: “If you want to buy a coin worth $ 1 billion, you generally not want others to notice your order until it is completed.” This is to prevent bot attacks in the first and maximum extraction value (MEV), which may result in increased slip, worse prices and higher costs.
His comments occur after the liquidation of almost $ 100 million in long Bitcoin positions in a hyperlik, in which he reportedly occupied a trader known as James Wybn. An event that took place after Bitcoin fell below $ 105,000, caused He claims to X that some users coordinated “hunting” for the liquidation.
One user x claimed This co -founder of the throne, Justin Sun, showed interest in participation, but the claim remains unconfirmed. He also went as far as invite Eric Trump, son of the President of the United States, Donald Trump, to the group.
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What are murky pools?
Zhao said that “large traders in Tradfi use dark pools, often 10 times larger” than established, see-through pools. Shadowy pools are private commercial places where immense contracts are hidden from public view until they are made.
This prevents attacks from the front, slip and MEV by hiding the size of the order, prices and intention. Despite this, the implementation of decentralized murky pots would require elaborate systems, such as evidence of zero knowledge (resistant to ZK) or delayed billing mechanisms.
Maria Carola, General Director of Instant Exchange Stealthex, told CointeLgraph that “the basic challenge in building a dark pool, which Dex is achieved by both privacy and verification.” She noticed that resistant to ZK and encrypted orders are promising development opportunities. She added:
“I think that one specific approach is the use of ZK-Snarks or ZK-G-CCh to confirm the enforcement and settlement of trade without revealing trade details.”
The obstacles are not only technical. Carola emphasized that “launching the dark onchain pool, especially in the case of Perpetuals, enters a complex regulatory landscape.”
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Trade privacy is crucial for derivatives
Zhao argued that privacy is particularly essential in derivative markets. He said that public visibility of liquidation levels exposes immense traders to coordinated attacks that could force premature liquidation:
“If others see your liquidation point, they can try to force the market to liquidate
Binance co -founder admitted that there are counterarguments for such projects, and additional transparency potentially allows market manufacturers to absorb large orders. He said it was “probably true.”
“I will not get to the argument about which it is proper or bad. Different traders can prefer different types of markets,” he said.
Karol Stealthex added that “coverage is a bumped sword”, noting that it is decreasing, but “also sends a manipulation attempt, especially in a levary environment.” “To solve this problem,” dark “Perp Dex must implement adaptive risk engines and detection of behavioral anomalies, preferably with baked cryptographic responsibility,” she said.
Zhao summed up, encouraging programmers to start Dark Dark Pool, a decentralized exchange with continuous swaps. He said that this could be achieved “or not showing Book Order, and even better, without showing deposits in bright contracts or only later.”
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