CEX volume is, on average, 10 times higher than DEXs. Is this just because of a better UI? We think there is more to it. Making financial moves in open, transparent blockchains is not free of consequence. Institutions and individuals alike prefer to keep their dealings private. This pain point is not new to crypto. In TradFi, we’ve had private financial systems such as dark pools that have existed since the 1960s.
In this report, we dive into dark pools and how they preserve trader and order privacy before execution and after settlement. We look at how dark pools leverage different PETs (Privacy Enhancing Technologies) such as ZK FHE, MPC, and TEE to accomplish their purpose.