Zhao darkish pool DEX may sink HyperLiquid, says prime dealer
A brewing battle within the decentralized change world could also be taking form, as distinguished dealer James Wynn warns that Binance founder Changpeng Zhao’s proposed darkish pool perpetuals DEX may upend HyperLiquid’s edge.
Wynn, who has criticized HyperLiquid’s referral program and compensation mannequin, argues that Zhao’s superior sources, execution historical past, and concentrate on fixing MEV-related transparency points may reshape the panorama for on-chain derivatives buying and selling.
The feedback observe Wynn’s criticism of HyperLiquid’s referral program regardless of producing substantial quantity for the platform.
Wynn revealed he earned solely $34,000 by HyperLiquid referrals regardless of driving vital person signups and buying and selling quantity. He additionally referred to as their compensation construction “extraordinarily poor” in comparison with different platforms.
The dealer disclosed he reached out twice in search of partnership offers however was declined, as HyperLiquid reportedly avoids such preparations with particular person promoters.
Zhao proposes darkish pool structure
Zhao’s latest social media put up confirmed his imaginative and prescient for an on-chain darkish pool perpetuals change that will tackle elementary transparency points that have an effect on present DEX constructions.
The Binance founder highlighted how real-time order visibility creates front-running alternatives and MEV assaults that enhance prices for giant merchants.
“I’ve at all times been puzzled with the truth that everybody can see your orders in real-time on a DEX,” Zhao wrote. He famous that even centralized change order books, nonetheless reveal buying and selling intentions that may be exploited.
Zhao’s proposed resolution entails both hiding order books solely or concealing sensible contract deposits till execution completion. He urged zero-knowledge proofs or related encryption applied sciences may permit this performance whereas on the identical time sustaining on-chain settlement advantages.
Wynn’s critique extends past compensation points to total aggressive issues about HyperLiquid’s long-term viability. He emphasised Zhao’s confirmed means to construct industry-leading merchandise and pointed to Binance’s dominance in centralized change markets as proof of execution functionality.
“CZ has the cash, community, groups to construct one thing like no different,” Wynn acknowledged.
HyperLiquid at the moment operates as a decentralized perpetuals change with full on-chain order books, making all buying and selling exercise clear and doubtlessly weak to the MEV exploitation that Zhao’s darkish pool idea would tackle.