- CZ backs privacy-first, non-custodial crypto trading.
- Genius targets institutional DeFi adoption by hiding trade intent and preventing front-running on public blockchains.
Changpeng Zhao(CZ), the founder of Binance, is back in crypto investing in a new trading platform, which is very different from Binance. Cz is backing a non-custodial platform. The Investment comes from the YZi Labs, which is the family office set up by CZ and Binance co-founder Yi He. YZi Labs made a tens of millions of dollars investment in Genius Trading.
How Genius Trading Protects Large DeFi Trades From Front-Running and MEV Attacks
Genius Trading is a private crypto trading tool designed mainly for large and institutional traders. Its main goal is to fix the problems of a lack of trade privacy. For example, on the public blockchains like Ethereum, all the pending transactions are visible in the mempool, so bots can front-run trades or sandwich large orders and push prices against big traders. This makes large DeFi trades expensive, predictable, and easy to exploit.
So to solve this, Genius uses the Multi-Party Computation (MPC) and a non custodial Design to hide trading until the execution. It simply breaks big orders into small pieces and uses temporary wallets to prevent others from spotting whale accumulation. It keeps the trader’s identity and plan secret. So others can’t see or copy the trade.
CZ built Binance on centralized custody and trust in one platform. Now he believes that the future of crypto is on-chain and big investors need privacy, so centralized exchange wont dominate forever. This signals a change in his long-term belief. By backing CZ, he is hedging his legacy, and if trading moves fully on-chain there, he doesn’t want to just own an exchange; instead, he wants to win the interface institutions use to trade.
This move clearly shows that Genius Trading will be a game-changer in the upcoming years, and CZ is betting on private and in-chain trading. Genius trading is like the dark pool, but for crypto. Cz also wants to help build tools that make him possible for big money.
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