On June 2nd, 2025, Binance founder CZ floated an idea to his 10 million+ followers…
Front-running, MEV, and visible liquidation points are daily headaches for DeFi traders and they’ve only gotten worse with the rise of perp DEXs. TradFi solved this with dark pools. Crypto still exposes everything.
But what if that “someone” CZ imagined already exists and is quietly building the very thing he’s calling for?
What He’s Describing Already Exists — On COTI
Enter Carbon DeFi and PriveX, two privacy-first DEX projects built on COTI V2. They’re not using traditional zero-knowledge proofs either, both leverage Garbled Circuits, a next-gen cryptographic primitive powering full encrypted computation on-chain.
And they’re not just hiding data. They’re encrypting everything, order flow, liquidation logic, and smart contract execution itself. No peeking. Not even for node operators.
In other words, it’s the dark pool CZ sketched out, only already working.
Carbon DeFi – Dark Pools for DeFi Traders
Carbon DeFi is piloting a private perpetuals DEX that aims to kill the liquidation games we’ve all seen. By hiding liquidation levels and executing perp logic inside encrypted smart contracts, Carbon makes liquidation sniping nearly impossible.
It’s more than just a new AMM. It’s a rethink of how risk, position data, and trading logic are handled - all encrypted, all customizable, and designed to run without exposing a trader’s edge.
Built on COTI V2, Carbon taps to keep critical parts of trade logic invisible. That means no orderbook sniping, no trailing bots, and no early warning signs before your liquidation hits.
PriveX – Stealth Liquidity for Serious Traders
Then there’s PriveX, a project laser-focused on private swaps and invisible orderflow. If Carbon is a dark pool for perps, PriveX is a stealth DEX for spot trades.
PriveX retweeted CZ post and said:
Their approach hides trade sizes, strategies, even the fact that an order is being prepared. This is the kind of privacy professional traders take for granted in TradFi and PriveX is bringing it on-chain.
The design? All backed by COTI V2’s encrypted compute layer, ensuring logic execution happens privately by default.
Garbled Circuits: Why This Actually Works
Let’s break this part down. COTI V2 uses Garbled Circuits, a cryptographic technique from academia that encrypts both the data and the computation meaning the smart contract logic itself is encrypted when executed. This isn’t just about hiding balances or blurring wallet IDs. It’s about encrypting what the smart contract is doing, in real-time, on-chain.
Compared to ZK rollups (great for proof-of-validity) or TEEs (hardware-trusted), Garbled Circuits offer something uniquely powerful: software-based encrypted compute that doesn’t rely on trust or centralized hardware.
It’s the missing layer for truly private DeFi and COTI’s already scaling it to 1,000 TPS for native and 40 TPS for encrypted executions.
The Future Isn’t Transparent
There’s a myth in crypto that transparency equals trust. But when everyone sees your trade before you make it or watches your liquidation inch closer block-by-block, it’s not trust. It’s exposure.
TradFi learned this a decade ago. That’s why dark pools exist. And as CZ said:
That’s the game. Until now.
With Carbon hiding perp liquidation points and PriveX making swaps invisible and both running on an encrypted layer that doesn’t leak logic, traders finally get their edge back.
ALSO READ: How coti Is Building Web3's Privacy? Projects on coti To Look Out For
Final Thoughts: CZ Asked. COTI Delivered.
When CZ tweeted on June 2nd, 2025 about the need for dark pool-style perps built with encryption-first design, it sounded like a call to arms. What he might not have known is that some teams were already way ahead.
On COTI’s privacy layer, both Carbon DeFi and PriveX are quietly shipping the very tech he described, not with traditional ZK, but with Garbled Circuits that hide not just data, but entire strategies. No visible liquidation points. No order flow surveillance. No front-running. Just encrypted logic executed privately on-chain.
CZ wrapped up his tweet with this:
Whether CZ invests or not, the builders are already building. And the future of private perps might already be live.
