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 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 transparent order books may be more attractive to market makers than dark pools.
At the same time, it said that under the same conditions, whales with actual alpha information would 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 wrote that now might be a good time to launch a dark pool-style perpetual contract DEX 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 liquidation point exposure, which is prone to market manipulation and MEV attacks.