A brewing battle within the decentralized trade world could also be taking form, as distinguished dealer James Wynn warns that Binance founder Changpeng Zhao’s proposed darkish pool perpetuals DEX might 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 give attention to fixing MEV-related transparency points might reshape the panorama for on-chain derivatives buying and selling.
The feedback comply with 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 important person signups and buying and selling quantity. He additionally referred to as their compensation construction “extremely poor” in comparison with different platforms.
The dealer disclosed he reached out twice searching for partnership offers however was declined, as HyperLiquid reportedly avoids such preparations with particular person promoters.
Zhao proposes darkish pool structure
Zhao’s current social media put up confirmed his imaginative and prescient for an on-chain darkish pool perpetuals trade that will handle elementary transparency points that have an effect on present DEX buildings.
The Binance founder highlighted how real-time order visibility creates front-running alternatives and MEV assaults that improve prices for big merchants.
“I have always been puzzled with the fact that everyone can see your orders in real-time on a DEX,” Zhao wrote. He famous that even centralized trade order books, nonetheless reveal buying and selling intentions that may be exploited.
Zhao’s proposed answer entails both hiding order books totally or concealing sensible contract deposits till execution completion. He recommended zero-knowledge proofs or related encryption applied sciences might permit this performance whereas on the identical time sustaining on-chain settlement advantages.
Wynn’s critique extends past compensation points to total aggressive considerations about HyperLiquid’s long-term viability. He emphasised Zhao’s confirmed skill to construct industry-leading merchandise and pointed to Binance’s dominance in centralized trade markets as proof of execution functionality.
“CZ has the money, network, teams to build something like no other,” Wynn said.
HyperLiquid at present operates as a decentralized perpetuals trade with full on-chain order books, making all buying and selling exercise clear and doubtlessly susceptible to the MEV exploitation that Zhao’s darkish pool idea would handle.