Oh, okay guys, a few days ago I came across an official post from Nillion inviting people to share their opinions on Covenants. I thought, why not share my own thoughts?
First, let's understand how Nillion presents itself. Nillion is working on privacy-focused technology that allows data to be used without exposing everything behind it. With Covenants, the idea is to keep certain instructions or conditions private while allowing actions when specific conditions are met.
Now, here's my opinion.
I think hiding large trading orders can be genuinely important for experienced traders. Imagine you're planning a $5 million trade. Would you want the whole market to know your intentions before you execute it? Probably not, because large orders can influence market behaviour and affect the price you're trying to get.
Honestly, I think this is exactly the kind of problem Nillion is trying to address.
Let me ask you something. If you speak to experienced traders, especially those managing large positions or working with big funds, and ask whether they'd prefer their trading strategies and orders to remain private, what do you think they'd say?
In my opinion, many would understand this problem immediately. They know how prices react to large orders and why revealing a strategy too early can put them at a disadvantage. That's why large funds and institutions often try to execute orders without exposing their full intentions.
So, from my perspective, Covenants makes sense because it addresses a real need. Of course, privacy alone cannot guarantee better execution or prevent slippage. But protecting sensitive trading instructions could still be a meaningful step forward.
What do you guys think? Does the trading industry genuinely need this kind of privacy-focused system? I'd love to hear your opinions.
#nil $NIL @Nillion