CZ Urges Launch of Secret Perp DEX to Shield Big Crypto Traders

Binance’s CZ urges the launch of a secret perpetual DEX to protect large traders from exposure, slippage, and manipulation risks.

Fridah Kangai
June 3, 2025
3:45 pm

Fridah Kangai

Fridah Kangai is a dedicated crypto journalist with a sharp eye for market trends, blockchain innovation, and digital asset movements. She specializes in breaking down complex topics into clear, engaging stories for both seasoned investors and curious newcomers. With a passion for decentralization and a pulse on the ever-evolving crypto space, Fridah delivers timely, accurate, and insightful coverage. Her work bridges the gap between technology and everyday understanding in the world of cryptocurrency.

CZ says large crypto trades on public DEXs face growing risk of front-running and liquidation.
A dark pool-style DEX using zero-knowledge tech could shield sensitive trade data from public view.
Community reacts swiftly to CZ’s idea, calling for safer and more private perpetual trading platforms.

CZ, the co-founder of Binance, has proposed creating a hidden, continuous decentralized exchange (DEX) to protect top traders. Many in the crypto industry are paying attention to his advice because worries are rising about the risks of open trading.

Based on CZ’s remarks, trades in public order books on DEXs can allow for the front-running and manipulation of essential positions. Unlike what is done by centralized exchanges, on-chain platforms display every trading action for everyone. Being so noticeable can attract people who want to profit from knowing the liquidation points.

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

According to CZ, dark pools allow big orders to be hidden. Such systems prevent traders from losing their positions and ensure orders are executed in line. In crypto, though, most decentralized trading remains visible to all.

He stated that this problem is far more severe for perpetual contracts. Seeing the markers for liquidation, investors can take actions that cause liquidations and benefit from the resulting drop in prices. This situation usually works against traders who manage enormous trading volumes.

CZ’s Call Sparks Debate on Privacy in Decentralized Trading

CZ believes the solution lies in using advanced privacy tools like zero-knowledge proofs. As a result, important information from trades isn’t revealed on the blockchain immediately. If a DEX is built like this, orders might not appear, or their goals could remain hidden from viewers.

Upon this comment, other members of the community voiced their support, and one person made a joke by suggesting being liquidated for making a little trade on a public DEX. CZ recommended better ways to protect an order process and continued to propose stronger security features.

How to attain transparency without weakening the security in DeFi has become a topic of debate again. Today, builders are offered incentives to ensure that traders are safe without sacrificing how the network is managed.

The call for a privacy DEX with perp markets underlines a greater desire in the crypto community. With greater visibility on the blockchain, many call for stealth trading systems. Since encryption provides security benefits, using it for trading contracts may alter the process of perpetual contracts in DeFi.

Also Read: SEC Drops Binance Case in Shocking Move That Could Change Crypto Forever