Genius, with CZ as an advisor and invested in by YZi Labs: Filling the Gap in "Execution Privacy" in the DEX Era
A statement posted by YZi Labs on X is worth pondering: As the DEX-to-CEX volume ratio shifts increasingly toward decentralized venues, professional traders face a critical "transparency bug."
This statement reveals two key signals:
(1) Trading is continuously migrating from CEXs to DEXs, a long-term, structural trend;
(2) Once trading truly migrates on-chain, professional traders lose the execution privacy that was originally present in CEXs.
I. What is the core problem that Genius aims to solve?
1. The "Transparency Paradox" of DEXs
(1) When DEXs begin to take over professional funds that originally belonged to CEXs, "on-chain transparency" becomes a burden. For large sums of money and quantitative strategies, transparency means that trading intentions are exposed and... MEV's rush to market ultimately led to a deterioration in transaction prices and a systemic erosion of alpha.
(2) This is precisely what YZi Labs refers to as the "transparency bug"—transparency itself is not wrong, but at the scale of professional transactions, the lack of execution privacy is a critical infrastructure issue.
2. The execution layer becomes the focus of competition in the next stage
(1) Genius's core judgment is that the next stage of competition for DEXs is not about liquidity, but about execution layer capabilities;
(2) The key is whether large, complex, and cross-chain transactions can be executed without arousing market alarm.
II. Genius's core competitiveness compared to other DEXs
1. Privacy execution: hiding the transaction intent
(1) Genius does not rely on an unauditable black box. Transactions remain on-chain and results are still verifiable, but the complete execution path is no longer exposed;
(2) By splitting orders, dispersing addresses, and using multiple routing, only fragmented transaction behavior is presented on-chain, making it difficult to reconstruct the overall strategy.
2. Not a DEX, but an execution layer
(1) It is not similar to Aster or Jupiter Instead of grabbing liquidity, they are building upon it to optimize execution efficiency.
3. Why YZi Labs and CZ?
(1) They are betting on a prediction: when DEXs truly take over CEX-level trading volumes, privacy-preserving execution infrastructure will inevitably emerge.