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Aster Unveils Hidden Orders—CZ Calls It a Step Toward Dark Pool DEXs
- Decentralized crypto trading platform Aster introduces a new feature called 'Hidden Orders' on their DEX, allowing users to place trades without immediate public visibility of size or timing.
- This feature is beneficial for investors making large trades to prevent copycat traders from causing market movements.
- Binance founder CZ supports the move, suggesting the need for 'dark pool' style trading in the crypto world to enable private big trades.
- CZ warns about the risks posed by public order books, especially on decentralized perp exchanges, citing vulnerabilities to front-running bots and coordinated attacks.
- Visibility in DEXs can lead to MEV attacks, increased slippage, worse prices, and higher costs for traders, according to CZ.
- CZ proposes a 'dark pool-style DEX + perps' model to protect against vulnerabilities by hiding order books or delaying smart contract interactions, suggesting the use of privacy tools like zero-knowledge proofs (ZK tech).
- Aster is the first perp DEX to implement Hidden Orders, showcasing the platform's innovation in decentralized trading.
- CZ's endorsement of Hidden Orders indicates the growing interest in privacy-focused trading solutions within the cryptocurrency market.
- The industry may be moving towards more privacy-focused trading solutions to address the risks associated with transparent order books and real-time position exposure on DEXs.
- This development could pave the way for enhanced security and privacy measures in decentralized trading platforms, catering to the needs of both large and small traders.
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