CZ Proposes Private Perp DEX to Prevent Manipulation

Binance co-founder Changpeng “CZ” Zhao has proposed a decentralized exchange (DEX) with dark pool features to protect large traders from front-running, MEV attacks, and coordinated liquidations. The idea follows a $100 million liquidation on Hyperliquid, prompting CZ to call for on-chain perpetual swap DEXs that hide orders until execution. Industry experts say privacy-focused solutions like zk-proofs could enable such systems, though technical and regulatory challenges remain.

Given recent events, I think now might be a good time for someone to launch a dark pool perp DEX.

I have always been puzzled with the fact that everyone can see your orders in real-time on a DEX. The problem is worse on a perp DEX where there are liquidations.

Even with a CEX…

— CZ 🔶 BNB (@cz_binance) June 1, 2025