Private DeFi: Balancing Transparency and Market Efficiency

DeFi’s focus on transparency has created unintended consequences, leading to privacy concerns and market dynamics that benefit bots at the expense of fair competition. While anonymity is essential for many users, it comes with hidden costs in terms of security and efficiency. This article argues for a shift towards private DeFi by exploring how blockchain technology offers solutions for achieving both market transparency and user privacy. wallet doxxing, alpha leakage, and MEV extraction are direct consequences of a system where your every move is public before it’s final, compromising anonymity and competitive strategy.