๐ CZ's Vision for a Game-Changing DeFi Innovation! ๐ฅ
Changpeng Zhao (CZ), the founder and former CEO of Binance, has sparked excitement in the decentralized finance (DeFi) space with a bold new idea! ๐ก
Given the current market landscape, CZ suggests the creation of a dark pool-based perpetual DEXโa decentralized futures exchange designed to offer greater privacy and security to traders. ๐
In a recent post on X (formerly Twitter), he emphasized that public orders on decentralized exchanges could pose serious risks for big investors. The transparency of liquidation points makes it easier for the market to be manipulated, leading to exposure to MEV (Maximum Extractable Value) attacks, high slippage, and unfavorable trade prices. โ ๏ธ
๐ญ CZ explained: โIn traditional finance, large investors rely on dark pools to execute massive trades privately. This level of secrecy is even more crucial in perpetual trading, as visibility into liquidation levels can be used to turn the market against traders.โ
To tackle this challenge, a next-gen DEX could be designed with mechanisms to conceal order books or introduce a delayed visibility for investments in smart contracts. ๐๏ธ CZ believes that advanced cryptographic techniques like zero-knowledge proofs (ZK) could be the key to making this vision a reality. ๐
What do you think? Could this be the future of DeFi trading? ๐๐ฐ #CZ #DEX