There Is A Structural Gap In Web3 Trading

Opinion from: Anish Mohammed, co -founder of Panther protocol

Co -founder Binance ChangPeng “CZ” Zhao Recently suggestsL Creation of permanent replacement with the replacement of the dark pool of decentralized exchange (DEX) is more than just a new idea-it is a timely reflection where the web3 lags behind.

On the market, which is increasingly managed by institutions and large parties involved, the CZ Call for private implementation and protection against maximum attacks on the extracted value (MeV) underlines the deeper truth: the current business infrastructure in the crypt is not built for scope, discretion or sophistization.

Alleged manipulation of hyperliquid onchain where is almost $ 100 million The liquidation was publicly monitored and seemingly focused, giving a problem to sharp relief.

Public blockchains provide all equal access to data, but also exhibit high -volume traders, tracking and wallet. In traditional financing, this is exactly what the dark pools have been built to avoid.

Mismatch between market maturity and infrastructure

Crypto grew up. Now we have digital assets permanently appreciated in a number of billions of dollars. The user base has expanded beyond the first adoptors to include institutional investors, regulated funds and corporate cash registers.

Nevertheless, we are still relying on outdated models of the implementation: over-the-counter tables with limited range, aggregators and peer-to-peer swaps susceptible to slip and inefficiency. The current infrastructure in space is not sufficiently mature for institutional investors who are used to more sophisticated media to carry out shops and shops.

Even worse, there is a constant threat of exposure. The founders, funds and whales are often monitored in real time. Every movement can send signals to the market, no matter how small or large. This level of visibility can address retailers who are hunger for Intel on market movements. Nevertheless, it is a significant discouraging means for sophisticated players and large institutions that have to enter and get off positions without provoking madness.

Dark pool cz dex

The idea of DEX with hidden liquidity, where orders are not visible until after execution, is not new to traditional finances, but still missing in the crypt. Cz suggests creating a protocol that uses privacy increasing technology, such as evidence of zero knowledge or multiple calculations (MPC) to hide the mechanics until they are completed. The intention is clear: Protect MEV robots, reduce handling and create a safe space for high volume stores.

Related: Here’s how to solve defi fragmentation through unified liquidity

Compromises come with privacy. Full opacity could open the door of unpublished manipulation. Regulatory organs and some users may push back if the dark structures of the pool reduce the market transparency. The challenge will be to balance the need to consider the demand for responsibility.

Wider market signal

Whether the idea of CZ is formed or not, its call is the signal itself.

There is a growing demand for infrastructure, which supports a private, extensive crypto transaction without relying on centralized intermediaries or outdated instruments. It is not just a shield of trades; It is a scope of scope, building output and friction reduction for serious market participants.

As web3 ripens, the assumptions we have been running for the last decade must evolve. The idea that each transaction must be public by default can refer to ideological purists, but no longer corresponds to the reality of growing capital industry.

Cz calls for Dark pool dex is not just a reaction to one event; It is a diagnosis of systemic needs.

If crypto has to attract serious capital, it must provide serious infrastructure. This means carrying out privacy, intelligent warranty and a clear difference between transparency and exposure. Web3 finally grows. Now his tools must do the same.

Opinion: Anish Mohammed, co -founder of Panther Protocol.

This article is for general information purposes and is not intended and should not be considered legal or investment advice. The opinions, ideas and opinions expressed here are the author himself and do not necessarily reflect or present the opinions and opinions of Caintelegraph.