Binance founder CZ (Zhao Changpeng) stated on X: 'Given the recent events, now might be a good time to launch a dark pool-style perpetual DEX. I have always been puzzled by this phenomenon: on DEX, everyone can see your orders in real-time. And in perpetual contract DEX, this problem is even more severe because it also involves liquidation risk.

Even on centralized exchanges, while orders are not directly associated with specific individuals, if you plan to buy a certain token worth $1 billion, you usually do not want others to notice before you complete the transaction. Otherwise, the other party may buy in ahead of you. In DEX, this situation can even evolve into an MEV attack, leading to increased slippage, worsened execution prices, and higher transaction costs.

For this reason, in traditional finance, large traders often operate through dark pools, where the trading volume is often 10 times that of the public order book. For perpetual contracts (or futures), it is even more important not to let others see your order information. If someone can see your liquidation point, they might collude to manipulate the market and trigger your liquidation. This may be exactly what we have observed recently.

CZ (Zhao Changpeng) pointed out that now is a good time to launch an on-chain dark pool style DEX combined with a perpetual contract platform, which can hide the order book, or further, completely keep the asset information deposited in the smart contract undisclosed for a certain period of time. These mechanisms can theoretically be accomplished using zero-knowledge proofs (ZK) or other cryptographic technologies.