The post Can CZ’s Anti-Front-Running DEX Finally Fix MEV? appeared on BitcoinEthereumNews.com.

The crypto world is abuzz after Binance founder Changpeng “CZ” Zhao reignited the debate on MEV (Maximum Extractable Value) and front-running with a radical new idea: a dark pool-style decentralized exchange (DEX) for perpetual futures. But as CZ’s proposal stirs the pot, rival security teams are rolling out their own solutions — turning 2025 into a high-stakes arms race for DeFi’s future. CZ’s Vision: A Dark Pool DEX to Hide Big Trades On June 1, CZ traveled to X to ask why every order on a DEX must be public, especially in the upper echelon world of perpetuals where liquidations can be “hunted” by competitors and bots. “If you want to buy $1 billion of a coin, you typically wouldn’t want other people to know about your order until it’s complete,” he posted, citing a recent $100 million liquidation on Hyperliquid that most suspect was organized by opportunistic traders. CZ’s answer: a dark pool DEX, in which liquidation points and trades are hidden until they are executed. He suggests that zero-knowledge proofs (ZKPs) and encrypted order books be used to hide large trades from view — borrowing a privacy concept from traditional finance and moving it to the forefront of DeFi. The goal? Make front-running and MEV attacks nearly impossible, bringing institutional-grade trading to crypto. “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.” — @cz_binance The Security Race: Wintermute’s “CrimeEnjoyor” and BitMEX’s Lazarus Defense While CZ’s proposal is still on paper, others are fighting real threats today. Top market maker Wintermute has newly launched “CrimeEnjoyor” — a tool that infuses on-chain notifications into Ethereum contracts that have been marked as wallet drainers. Such notices target a spike…

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Filed under: News - @ June 2, 2025 7:21 pm