According to Foresight News, CZ posted on Twitter, "Given recent events, I believe now might be a good time to launch a dark pool perpetual DEX. I have always been confused about everyone being able to see orders in real-time on DEX. This issue is even more severe on perpetual DEX with liquidations.
Even when using a CEX order book, orders are not associated with specific individuals, but if you want to buy cryptocurrencies worth $1 billion, you typically do not want others to notice your order before it is completed. Otherwise, others might front-run and effectively front-run trade. In DEX, this could lead to MEV attacks. This would cause increased slippage, price drops, and increased costs. Therefore, large traders in TradFi use dark pools, which are usually 10 times larger than lit pools (i.e., normal order books).
The counterargument I see is that increased transparency allows market makers to absorb large orders. This might be true. I do not want to argue which is right or wrong. Different traders might prefer different types of markets. Either do not display the order book, or better yet, completely hide smart contract deposits, or display them much later."
