CZ believes that the current transparency of DEX allows bots to easily track orders, which can manipulate prices and force traders into liquidation. He proposes to build a decentralized derivative DEX exchange in a 'dark room' style, where buy and sell orders and positions are hidden throughout the matching process, only revealed after the transaction is completed.
Zero-knowledge technology or similar encryption techniques will help secure data, keeping the exchange decentralized and users retaining control of their assets. As a result, the risk of front-running is significantly reduced, making transactions safer and particularly attractive to large funds that require privacy.