CZ Wants a Dark Pool DEX to Hide Trades and Outsmart Bots

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Changpeng Zhao Wants a Dark Pool DEX to Hide Trades and Outsmart Bots

Written by Aaron S.,

Editor-In-Chief

Last Updated: June 03, 2025

Key Takeaways

Changpeng Zhao suggests a DEX that hides trades and positions to protect users from being targeted;
He believes public on-chain data leads to unfair trades, slippage, and higher costs;
Zhao proposes using encryption, such as zero-knowledge proofs, to keep activity private.

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Changpeng Zhao Wants a Dark Pool DEX to Hide Trades and Outsmart Bots

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Changpeng "CZ" Zhao, founder of Binance $6.22B , has suggested a new type of decentralized trading platform that would keep user activity hidden.

His idea is to create a system where trades, deposits, and positions are not visible to the public, which aims to prevent certain trading tactics that exploit exposed data, especially in markets with high leverage.

In a June 2 post on X, Zhao wrote that "now might be a good time for someone to launch a dark pool perp DEX".

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He explained that it has always seemed strange to him that decentralized exchanges (DEXs) display every order in real time. The issue becomes worse with perpetual futures, financial contracts that do not expire, because they involve more risk and can be targeted more easily.

Zhao also noted a key difference between centralized and decentralized exchanges. Centralized ones hide who is behind each trade, but on decentralized platforms, trades are linked to visible wallet addresses.

The result is that people using these platforms often get worse prices, face more slippage, and pay higher costs. Zhao said this problem could be reduced by building a system where trade information is hidden during the trading process and only shown after everything is settled.

He suggested using encryption tools, such as zero-knowledge proofs, to keep trade data private while still allowing the platform to function properly.

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