Changpeng Zhao (CZ), the former CEO of Binance, has proposed a decentralized exchange (DEX) styled as a dark pool for perpetual futures.
Could this bold proposal from CZ be linked to the recent large-scale trades by trader James Wynn on Hyperliquid, often referred to as the Hyperliquid 40x whale?
Dark Pool Perp DEX: A Groundbreaking Idea from Changpeng Zhao?
On June 1, 2025, Changpeng Zhao (CZ) stirred the crypto community with a post on X. In it, he proposed the concept of a dark pool-style decentralized exchange (DEX) for perpetual futures.
In his post, CZ expressed concerns about the excessive transparency of current DEXs, where all trade orders are publicly displayed in real-time.
“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 shared.
To elaborate, CZ explained that if a trader places a $1 billion crypto buy order on a DEX, others can detect it and attempt to buy ahead, a phenomenon known as front-running.
This behavior causes slippage, increasing transaction costs, and unfavorable prices. In perpetual futures, the risks are even greater: if your liquidation point is exposed, other traders can manipulate the market to push you into a loss.
To address this, CZ proposed a dark pool. In this model, trade-in perpetual futures orders are hidden. To achieve this, dark pool perp DEXs could utilize encryption technologies like Zero-Knowledge Proofs (ZK) to protect information. According to CZ, this would provide privacy and security for traders.
Did James Wynn Spark CZ’s New Idea?
CZ’s idea seems inspired by recent events, particularly the case of James Wynn. James made substantial profits quickly but lost them all within days on Hyperliquid.
“The perps casino was fun. Zero regrets. Flipping $4m to $100m and back down to -$13m is one hell of a thrill. Hope many of you enjoyed it as much as I did,” James Wynn posted on X.
Wynn’s high leverage and risk-loving mindset led to these dramatic outcomes. Notably, when Wynn faced liquidation and significant losses, another trader employed an opposing strategy and reaped impressive profits.
According to data reported by BeInCrypto from Lookonchain, trader 0x2258 shorted when James Wynn bought, and vice versa. This strategy enabled 0x2258 to earn $17 million while Wynn suffered a $98 million loss.
Some voices on X, like DonCryptoDraper, also supported CZ’s idea.
“Agreed. I opened a 13.27 dollar long the other day and immediately the whales saw my order on the DEX, dumped and liquidated me. I demand a refund,” DonCryptoDraper shared.
Similarly, crypto trader EnHeng viewed CZ’s idea about dark pool perp DEX as a promising direction.
“They’re solid DEXs on their own, but we haven’t really seen a project that combines dark pool mechanisms with perpetual contracts yet. That’s actually a very promising direction,” EnHeng456 said.
Some traders also speculated that CZ’s idea might soon be launched on BNB Chain.
“The boss just casually dropped a billion-dollar idea on a Sunday. ZK + Perps + Dark Pools = Real alpha. And imagine this launching on BNB Chain,” a trader shared.
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