- CZ suggests launching a dark pool perpetual contract DEX to prevent MEV attacks.
- Endorsement from CZ could drive institutional interest.
- ZK technology emphasized for enhancing privacy in DeFi.
Changpeng Zhao, founder of Binance, proposed the launch of a dark pool perpetual contract DEX on June 2 via his X account. He cited concerns over MEV attacks and transaction transparency.
Insights from the Coincu research team suggest that privacy-driven DeFi could prompt regulatory attention, especially with institutional participation. This proposal by CZ could accelerate interest in ZK technology, aligning financial infrastructure with privacy enhancements.
CZ Advocates ZK Tech for MEV Attack Prevention
Changpeng Zhao’s announcement on June 2 suggests launching a dark pool perpetual contract DEX. “It might be a good time to launch a dark pool perpetual contract DEX… Public order books are prone to MEV attacks, increased slippage and increased costs, especially in perpetual contract transactions, where transparent liquidation information may lead to malicious manipulation… Privacy technologies such as ZK can hide orders and deposits to enable a safer institutional-level trading environment. Developers, DM me if interested in collaborating.” Zhao encouraged developers to collaborate, marking a strategic move in decentralized finance innovation.
Zhao claims the use of privacy-preserving tech could reduce trading hindrances by hiding orders and deposits, fostering a more secure and private institutional trading landscape. His endorsement is likely to attract interest from institutions and developers focused on DeFi.
The broader crypto community responded positively to Zhao’s proposal, with many developers expressing interest in participating. Historical trends indicate that shifts towards privacy-focused solutions often spur innovation and engagement within the sector. With increased discussions among developers, attention grows on such integration within existing systems.
Privacy-Driven DeFi Poised for Increased Regulatory Scrutiny
Did you know? The concept of dark pools is well-established in traditional finance, enabling large trades without altering market prices. This highlights a historical approach’s potential adaptation to cryptocurrency via ZK technology.
According to CoinMarketCap, Ethereum (ETH) is priced at $2,496.05 with a market cap of $301.33 billion, claiming a 9.19% market dominance. The trading volume over the past 24 hours was $13.09 billion, down 1.19%, with ETH increasing 35.78% over the past 30 days.
Zhao claims the use of privacy-preserving tech could reduce trading hindrances by hiding orders and deposits, fostering a more secure and private institutional trading landscape. His endorsement is likely to attract interest from institutions and developers focused on DeFi.
Source: https://coincu.com/341119-cz-proposes-dark-pool-dex/