Creating a Dark Pool DEX to Prevent Market Manipulation

Binance co-founder Changpeng “CZ” Zhao suggested the development of a dark pool perpetual swap decentralized exchange (DEX) to combat market manipulation. Zhao expressed concerns about the transparency of orders on current DEX platforms, especially during liquidations. He emphasized the need for privacy when executing large trades to avoid front-running and MEV bot attacks. The proposal follows a significant Bitcoin liquidation incident on Hyperliquid, raising suspicions of coordinated actions. Zhao highlighted the advantages of dark pools in traditional finance and the challenges of implementing them in decentralized systems. Maria Carola, CEO of StealthEX, emphasized the importance of balancing privacy and verifiability in dark pool DEX development. Both Zhao and Carola acknowledged the complexities, including technical and regulatory hurdles, in creating a secure and efficient dark pool DEX for derivatives trading. Read more AI-generated news on: https://app.chaingpt.org/news