In the DeFi ecosystem, whales and institutional traders face an awkward reality: transparency, which should be an advantage of blockchain, has become their biggest pain point.



Imagine you are an institutional trader preparing to move a $50 million position. On a fully transparent chain like Ethereum, every order you place and every intent behind your actions are exposed without exception. MEV bots (also known as sandwich attackers) lurking in the network can lock onto targets in an instant, artificially raising prices before you build your position, then immediately crashing the price after you sell. How costly is this "hunting"? Industry estimates suggest that institutions lose billions of dollars annually because of it.

Traditional finance has something called Dark Pools, which allow large trades to be executed privately before revealing the results, thus avoiding market impact. DeFi has long lacked such tools. Until recently, some new generation blockchains have started to offer similar protections through innovative technologies like blind voting consensus mechanisms and privacy smart contracts.

The core logic of this solution is simple yet effective. First, your large orders are completely hidden on-chain before execution — outsiders only know a transaction occurred but cannot see the size, counterparties, or your price sensitivity. Second, because attackers cannot see the data at all, those domineering MEV bots instantly become blind. The final highlight is compliance — this is not a lawless zone. The system supports selective disclosure, meaning you can keep information confidential from competitors while maintaining full transparency for audits and regulators.

This is the real condition that allows large funds to confidently enter the market. While other public chains are still competing on transaction speed and throughput, some projects have already grasped the most genuine needs of institutional investors: secure trading, privacy protection, and regulatory friendliness — all three at once. This race is becoming a new high ground in DeFi competition.
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LiquidationSurvivorvip
· 6h ago
50 million poured in and the robots will scoop it all up, this is what they call decentralized freedom haha
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BlindBoxVictimvip
· 6h ago
Really, I've been fed up with MEV for a long time. Watching my orders get sniped over and over again feels like being skinned alive... Billions of dollars just gone like that? This is so damn outrageous.
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PerennialLeekvip
· 7h ago
Oh no, someone finally said it. Transparency really is a double-edged sword. It's just too tragic when big fish are targeted; billions of dollars just disappear like that. MEV bots are basically robbing. The dark pool logic should have appeared on-chain long ago. Now, there are projects seriously working on privacy. I have to admit, the selective disclosure design really hits the pain point and is friendly to regulators. This is what big funds are looking for. It all depends on who can thoroughly execute this, it feels like this track is about to change. But honestly, only those who can truly solve the MEV problem will be the winners.
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GateUser-a5fa8bd0vip
· 7h ago
Hmm... So this is what the big players really want, huh? The dark pool system can actually be played on-chain.
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