Binance's co-founder CZ has suggested creating a "dark pool" decentralized exchange (DEX) for perpetual swaps to combat market manipulation. 💥
CZ noted how everyone can see orders in real-time on DEXs, making large traders vulnerable to front-running and MEV bots. He pointed out that in traditional finance, big players use dark pools to hide large orders until they're filled.
The idea is to prevent others from seeing your liquidation point and "ganging up on you" to force liquidation. Some experts say that while hiding orders reduces front-running, it could also obscure manipulation. 🤔
CZ is encouraging developers to launch an on-chain dark pool DEX with perpetual swaps. This could be done by hiding the order book or even deposits into smart contracts. What do you think of this proposal and its potential impact on trading strategies? Keep up with the trends!