Marble Decentralized Blockchain Bank Launches ‘Flash Lending’ For Arbitrage Trading
Marble is a startup whose smart contracts make it possible for trades to leverage arbitrage chances that may be available on the Ethereum blockchain. The company, which has been built on a devolved bank based on the blockchain infrastructure made an official announcement on Monday indicating that its public beta would now be available on Ethereum’ main net.
According to the announcement made via its official Twitter handle, the startup will also be introducing a concept known as ‘flash lending’. With this concept, people will be in a position to borrow ERC-20 and Ether tokens to take advantage of arbitrage opportunities that arise on the Ethereum blockchain.
To make this a possibility, Marble has gone ahead and developed its own unique smart contracts that own both the tokens and the Ether. The tokens and Ether to be made available to protocols (low-risk ones) that may be in need of a lender.
This means that traders and developers will now be able to earn profits from any inefficiencies that may arise in illiquid Ethereum assets. They will be able to achieve this without having to resort to using their own personal funds.
A good example of a case where the Marble smart contract may be put to use would be in the devolved interchange arbitrage.
What Is Flash Lending All About?
With the flash trading concept, a trader will be in a position to borrow what they require from the Marble bank, and once approved, they can proceed to purchase tokens from the decentralized exchange.
The token can later be sold to another decentralized exchange for a price higher than the buying price. Having sold the token, the trader can now proceed to repay the Marble bank and pocket the remaining profit. Mind you all this is being done in the form of a single atomic transaction.
It is important to note that there is not much information on Marble available to the public at the moment. But from what little is known, it is understood that Arianna Simpson, the crypto venture capitalist happens to be backing the projects.
Arianna Simpson is the owner of Autonomous Partners, a firm that recently made headlines for entering into a business partnership with an investment group owned, and managed by billionaire Steven Cohen.
The beta from Marble is currently live. At the time of writing, the bank is said to have a balance of at least 2 Ether. The balance is meant to function as the opening bug bounty. In addition to creating a decentralized bank, the startup is also committed to supporting a developer ecosystem. It has invited all developers working on projects that can support flash lending to get in touch with their development team.
You should note that Marble has been developed in a very modular manner. This means that it is possible for it to act as an on-chain lender, albeit a generic one that can be used in various diverse ways, e.g., collateralized loans and in margin trading.