Alliance DAO founder: Transparent order books are more attractive to market makers than dark pools
Odaily News Qiao Wang, founder and core contributor of Alliance DAO, said that the most important piece of information for a market maker is to know who he is trading with. If the counterparty is degenping, the market maker will withdraw liquidity. If the counterparty is James Wynn, they will actively provide liquidity. This is why transparent order books may be more attractive to market makers than dark pools. At the same time, he said that, other things being equal, whales with actual alpha information will be more inclined to trade on exchanges/dark pools. But it has no effect on Hyperliquid because most contract whales do not have alpha information. They become whales through reckless risk-taking, which is simply a product of survivor bias. Earlier news, CZ posted that it might be a good time to launch a perpetual contract DEX with a dark pool style on the chain. He pointed out that in existing DEXs, the problem of real-time visibility of all orders is particularly serious on perpetual contract platforms, especially when it comes to exposure of liquidation points, which are vulnerable to market manipulation and MEV attacks.