Problem
Why does 50% of wall street trade in the dark, while DeFi forces everyone into the light?
The TradFi Standard
Wall Street demands privacy. Data shows that >50% of US Equity volume is executed "Off-Exchange" (Dark Pools) to prevent price slippage.
The DeFi Reality
DeFi operates on <1% privacy. Every order is visible in the public mempool before it settles.
The Disconnect
There is a fundamental mismatch between how institutions trade (privately) and how DeFi works (publicly).
Case Study: The $10M Institutional Dilemma
To understand why this blocks adoption, let's look at a specific scenario:
Meet Nasta, a Fund Manager.
Nasta manages a $10M portfolio in Real-World Assets (RWAs), specifically tokenized T-Bills on the Mantle network.
The Scenario: Market conditions change, and Nasta needs to rebalance his portfolio by selling $2M worth of assets quickly.
The Problem on Current DEXs: If Nasta submits this order to a standard AMM (like Uniswap or Agni):
Signal Leak: His wallet address is tagged. Competitors instantly see that "Whale Wallet A" is dumping assets.
NAV Exposure: His Net Asset Value (NAV) and total holdings are public, allowing competitors to trade against her position.
MEV Predation: Sophisticated bots detect his large transaction in the mempool and "sandwich" his trade, forcing him to sell at a worse price.
The Result: Nasta decides not to trade on-chain. He takes his volume back to traditional OTC desks or off-chain CEXs.
It makes transparency expensive
For Retail
Retail traders lose billions to MEV bots. When your order is visible, bots front-run and sandwich your trade, forcing you to buy at a higher price.
For Institution
Institutions cannot trade RWAs (T-Bills, Private Credit) on-chain. Because a transparent ledger reveals their Net Asset Value (NAV) and trading strategies to competitors instantly.
Thus, RWAs onchain is not usable if strategies are public
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