Changpeng 'CZ' Zhao, founder of Binance and now leading AI initiatives through his firm EZ Labs, has publicly championed the integration of artificial intelligence into decentralized exchanges (DEXs). Speaking at the WebX conference in Tokyo, Zhao emphasized the need for privacy-focused trading models, inspired by successes seen with platforms like Hyperliquid.
He highlighted a critical flaw in current DEX operations: the real-time visibility of all orders, which exposes traders to risks like front-running, maximal extractable value (MEV) attacks, and coordinated liquidation attacks. "I have always been puzzled with the fact that everyone can see your orders in real-time on a DEX," Zhao stated. "The problem is worse on a perp DEX where there are liquidations. Even if you got a billion dollars, others can gang up on you."
The proposed AI integration aims to address these issues by introducing features such as dark pools, which could shield order information, and gasless transactions, improving efficiency. Zhao envisions a future where hundreds or thousands of AI agents per person generate microtransactions via programmable blockchain networks, making crypto the natural medium of exchange for AI, bypassing traditional fiat systems.
This shift is expected to significantly impact the BNB Chain ecosystem, which is already upgrading to incorporate AI for better transaction management. The move could lead to reduced MEV attacks, improved stability, and increased adoption of DEX models, potentially prompting regulatory bodies to reconsider cryptocurrency legislation to accommodate these technological advancements.