{"id":2452,"date":"2025-06-08T18:41:57","date_gmt":"2025-06-08T18:41:57","guid":{"rendered":"https:\/\/bitunikey.com\/news\/zhao-dark-pool-dex-could-sink-hyperliquid-says-top-trader\/"},"modified":"2025-06-08T18:41:59","modified_gmt":"2025-06-08T18:41:59","slug":"zhao-dark-pool-dex-could-sink-hyperliquid-says-top-trader","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/zhao-dark-pool-dex-could-sink-hyperliquid-says-top-trader\/","title":{"rendered":"Zhao dark pool DEX could sink HyperLiquid, says top trader"},"content":{"rendered":"<p><\/p>\n<div class=\"post-detail__content blocks\">\n<p class=\"is-style-lead\">A brewing battle in the decentralized exchange world may be taking shape, as prominent trader James Wynn warns that Binance founder Changpeng Zhao\u2019s proposed dark pool perpetuals DEX could upend HyperLiquid\u2019s edge. <\/p>\n<p class=\"is-style-default\">Wynn, who has criticized HyperLiquid\u2019s referral program and compensation model, argues that Zhao\u2019s superior resources, execution history, and focus on solving MEV-related transparency issues could reshape the landscape for on-chain derivatives trading.<\/p>\n<p>The comments follow Wynn\u2019s criticism of HyperLiquid\u2019s referral program despite generating substantial volume for the platform.<\/p>\n<p>Wynn revealed he earned only $34,000 through HyperLiquid referrals despite driving significant user signups and trading volume. He also called their compensation structure \u201cextremely poor\u201d compared to other platforms.<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\">\n<div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">I was not paid a single cent by HyperLiquid.<\/p>\n<p>I reached out on two occasions hoping to get some kind of partnership deal for all of the attention I was bringing them, and although they seemed thankful they don\u2019t offer such deals to anyone. Which kinda makes sense considering\u2026<\/p>\n<p>\u2014 James Wynn (@JamesWynnReal) <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/twitter.com\/JamesWynnReal\/status\/1931599184076894461?ref_src=twsrc%5Etfw\" target=\"_blank\">June 8, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n<p>The trader disclosed he reached out twice seeking partnership deals but was declined, as HyperLiquid reportedly avoids such arrangements with individual promoters.<\/p>\n<h3 class=\"wp-block-heading\">Zhao proposes dark pool architecture<\/h3>\n<p>Zhao\u2019s recent social media post showed his vision for an on-chain dark pool perpetuals exchange that would address fundamental transparency issues that affect current DEX structures.<\/p>\n<p>The Binance founder highlighted how real-time order visibility creates front-running opportunities and MEV attacks that increase costs for large traders.<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\">\n<div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Given recent events, I think now might be a good time for someone to launch a dark pool perp DEX.<\/p>\n<p>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.<\/p>\n<p>Even with a CEX\u2026<\/p>\n<p>\u2014 CZ \ud83d\udd36 BNB (@cz_binance) <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/twitter.com\/cz_binance\/status\/1929246168833229243?ref_src=twsrc%5Etfw\" target=\"_blank\">June 1, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n<p>\u201cI have always been puzzled with the fact that everyone can see your orders in real-time on a DEX,\u201d Zhao wrote. He noted that even centralized exchange order books, still reveal trading intentions that can be exploited.<\/p>\n<p>Zhao\u2019s proposed solution involves either hiding order books entirely or concealing smart contract deposits until execution completion. He suggested zero-knowledge proofs or similar encryption technologies could allow this functionality while at the same time maintaining on-chain settlement benefits.<\/p>\n<p>Wynn\u2019s critique extends beyond compensation issues to overall competitive concerns about HyperLiquid\u2019s long-term viability. He emphasized Zhao\u2019s proven ability to build industry-leading products and pointed to Binance\u2019s dominance in centralized exchange markets as evidence of execution capability.<\/p>\n<p>\u201cCZ has the money, network, teams to build something like no other,\u201d Wynn stated.<\/p>\n<p>HyperLiquid currently operates as a decentralized perpetuals exchange with full on-chain order books, making all trading activity transparent and potentially vulnerable to the MEV exploitation that Zhao\u2019s dark pool concept would address.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A brewing battle in the decentralized exchange world may be taking shape, as prominent trader James Wynn warns that Binance founder Changpeng Zhao\u2019s proposed dark pool perpetuals DEX could upend&hellip;<\/p>\n","protected":false},"author":1,"featured_media":2453,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2452","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/2452","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=2452"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/2452\/revisions"}],"predecessor-version":[{"id":2454,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/2452\/revisions\/2454"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/2453"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=2452"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=2452"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=2452"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}