CZ Proposes Dark Pool DEX for Perpetual Futures to Enhance Security

Following this $100 million loss from 'our whale,' CZ has proposed establishing a decentralized exchange (DEX) with a dark pool for perpetual futures (perps) to conceal orders and safeguard traders. On traditional decentralized exchanges, orders are visible to everyone in real-time, which introduces risks such as front-running (MEV attacks), slippage, price deterioration, and in the case of futures, the potential for deliberate liquidations at visible stop levels. In traditional finance, large players trade through dark pools, which are often ten times larger than the lit markets, offering privacy and security for transactions. CZ suggested creating a DEX with perps that would feature no public order book, where deposits are hidden or delayed using smart contracts, and technologies like zero-knowledge proofs (ZK) or encryption are employed. The community is called to develop such a project; CZ is open to contact via reachme.io/@cz_binance but makes no guarantees about responses or investments.