A brewing battle in the decentralized exchange world may be taking shape, as prominent trader James Wynn warns that Binance founder Changpeng Zhao’s proposed dark pool perpetuals DEX could upend HyperLiquid’s edge.
Wynn, who has criticized HyperLiquid’s referral program and compensation model, argues that Zhao’s superior resources, execution history, and focus on solving MEV-related transparency issues could reshape the landscape for on-chain derivatives trading.
The comments follow Wynn’s criticism of HyperLiquid’s referral program despite generating substantial volume for the platform.
Wynn revealed he earned only $34,000 through HyperLiquid referrals despite driving significant user signups and trading volume. He also called their compensation structure “extremely poor” compared to other platforms.
The trader disclosed he reached out twice seeking partnership deals but was declined, as HyperLiquid reportedly avoids such arrangements with individual promoters.
Zhao proposes dark pool architecture
Zhao’s 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.
The Binance founder highlighted how real-time order visibility creates front-running opportunities and MEV attacks that increase costs for large traders.
Given recent events, I think now might be a good time for someone to launch a dark pool perp DEX.
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.
Even with a CEX…
— CZ
BNB (@cz_binance) June 1, 2025
“I have always been puzzled with the fact that everyone can see your orders in real-time on a DEX,” Zhao wrote. He noted that even centralized exchange order books, still reveal trading intentions that can be exploited.
Zhao’s 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.
Wynn’s critique extends beyond compensation issues to overall competitive concerns about HyperLiquid’s long-term viability. He emphasized Zhao’s proven ability to build industry-leading products and pointed to Binance’s dominance in centralized exchange markets as evidence of execution capability.
“CZ has the money, network, teams to build something like no other,” Wynn stated.
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’s dark pool concept would address.
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