Binance’s CZ Proposes Dark Pool DEX as Web3 Faces Institutional Trading Privacy Challenges

Key Points

1. Institutional demand highlights Web3’s trading infrastructure limitations, particularly the exposure of transaction data on public blockchains, making wallets vulnerable to front-running and surveillance.

2. CZ’s dark-pool DEX would use zero-knowledge proofs and multiparty computation (MPC) to conceal order flow, reducing MEV attacks and manipulation risks for high-volume traders.

3. The proposal aims to foster greater liquidity and market stability by providing a trustless solution for institutional traders, bridging gaps left by current OTC desks and aggregators.

4. The innovation must balance privacy with regulatory compliance to ensure a scalable and secure Web3 trading ecosystem.

5. CZ’s vision underscores the need for privacy-enhancing technologies to address MEV vulnerabilities and support institutional participation in crypto trading.