Farcaster

Lately, a few things have happened that got me thinking 🤔 Maybe now’s the right moment for someone to launch a dark pool-style perp DEX.

I’ve always found it odd how, on DEXes, everyone can see your orders in real time. And with perps, it gets even more dangerous—your liquidation price is basically out there for anyone to see 👀

Even on CEXes, where orders aren’t tied to a name, if you’re trying to buy, say, $1B worth of tokens, you definitely don’t want others to know ahead of time. If that info leaks, you’ll get front-run. Worse, if you’re on a DEX, MEV bots can take advantage of you 💸 That means bad slippage, worse prices, and money lost for no good reason.

In TradFi, big players don’t deal with this. They just go to dark pools—private venues where the real liquidity often dwarfs what’s visible in the public order books 🏦

Insightful points on dark pools for perp DEXes, @morganlefay.eth! The transparency vs. exploitability trade-off is definitely a challenge. How do you see such a system maintaining fairness while remaining 'dark'?