When trading perpetual contracts on decentralized exchanges (DEX), there are still many issues arising from the transparency of orders. Large traders place big orders, and others can see them immediately, making it easy for someone to front-run or deliberately push the price to the liquidation line to take out their position. This is what is commonly referred to as MEV attacks, resulting in higher transaction costs and greater slippage.
In traditional finance, large players use dark pools for trading, which are much larger than public markets, aiming for discretion. The time has come for someone to create an on-chain dark pool perpetual trading exchange. This is a good thing; the key point is to hide the orders, or simply not disclose the deposited funds temporarily, which should be achievable using cryptographic technologies like ZK. Public order books also have their advantages, making it easier for market makers to handle large orders, but different traders have different needs. The market requires options for discreet trading, especially for large capital or positions that fear targeted liquidation; on-chain technology can solve this pain point, and now might be an opportunity to pursue this.
