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CZ proposed a new DEX model that hides orders, trades, and liquidation points.
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The design would use zero-knowledge proofs and atomic swaps to preserve privacy.
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Industry leaders say it could redefine institutional DeFi if trustless and cross-chain.
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Developers are invited to join the project via CZ’s paid platform ReachMe.io.
A New Take on Perp DEX Privacy
Changpeng “CZ” Zhao has proposed a decentralized exchange designed to combat front-running and liquidation attacks by concealing user positions and trade details. In a post on X, the Binance founder suggested a dark pool-style perp DEX that would hide sensitive trading data to protect users from manipulation and MEV bots.
How It Would Work
The concept involves hiding orders, wallet-linked transactions, and liquidation points through zero-knowledge proofs or similar encryption methods. Perpetual DEXs, which allow leveraged positions, are especially vulnerable to liquidation targeting due to their transparent nature. By masking data until settlement, the platform would create a more private and secure environment for high-value traders.
Community and Expert Response
Komodo CTO Kadan Stadelmann praised the idea as a necessary step for privacy-focused, trustless DeFi, noting it would need non-custodial execution and cross-chain support. Avail’s Annu Shekhawat agreed, stating it would set a benchmark for institutional-grade DeFi.
The suggestion reignites an ongoing debate around transparency in decentralized systems, especially as institutional players seek privacy protections akin to those offered by traditional finance.
CZ Invites Developers to Join
CZ encouraged developers to contact him via ReachMe.io, a paid messaging platform he launched earlier this year to manage communication overload. He stepped down from Binance’s CEO role in 2023, but continues to be active in shaping crypto infrastructure through public engagement and private funding.
