Alliance DAO Founder: Transparent order books are more attractive to market makers than dark pools.

Odaily News Alliance DAO founder and core contributor Qiao Wang stated that the most important piece of information for a market maker is to know who they are 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 a transparent order book might be more attractive to market makers than a dark pool. At the same time, it is indicated that under the same other conditions, whales with actual alpha information are more likely to trade on exchanges/dark pools. However, this has no impact on Hyperliquid, as most contract whales do not have alpha information. They become whales through reckless risk-taking, merely a product of survivor bias. According to previous reports, CZ stated that now might be a good time to launch an on-chain dark pool style perpetual contract DEX. He pointed out that the issue of all orders being visible in real-time in existing DEXs is particularly severe on perpetual contract platforms, especially when it involves liquidation point exposure, which is susceptible to market manipulation and MEV attacks.