The founder of Binance Changpeng Zhao invited decentralized exchanges to introduce a “dark pool” to conceal transactions, positions and deposits from the public to protect traders from market manipulations.

According to Zhao, it is time to launch a hidden pool for the so -called perp dex – decentralized exchanges offering unlimited futures contracts, when users can make transactions with a high credit shoulder without expiration. Zhao noted that decentralized exchanges (DEX) show orders tied to the wallet and the liquidation points. Therefore, there is a risk of attacking attacks and problems of maximum extracted value (MEV), when bots detect and use the transaction confirmation for profit to profit.

Zhao mentioned traditional finances (Tradfi), where “dark pools” are used for large transactions. According to Zhao, they are often 10 times more than the “bright pools” (ordinary books of orders). The question of confidentiality is more acute for unlimited contracts or in the trade in futures, the founder of Binance said.

“I was always embarrassed by the fact that all your orders in real time are visible on DEX. In Perp Dex, where liquidation occurs, the problem is aggravated. When buying a coin for $ 1 billion, you don’t want others to notice your order until it is completed. Otherwise, people can try to buy you before, ahead. In the case of DEX, this can lead to MEV attacks. As a result, you will get an increase in slippage, worst prices and higher costs, ”wrote Zhao.

To reduce these risks, Zhao suggested using a “dark pool”, which does not show a book of orders and deposits in smart contracts. This can be done using evidence with zero disclosure (ZK) or similar encryption to hide the activity of traders to later stages of calculations.

In May, the former Binance general director suggested that already in the current market cycle, Bitcoin can get into a range of $ 500,000- $ 1 million, since more and more countries begin to realize the potential of blockchain and cryptocurrencies.