We're excited to announce that we've launched flash lending in public beta on the Ethereum mainnet! Make arbitrage trades on decentralized exchanges without any capital: https://t.co/GcE1PtzZ65
— Marble (@marbleprotocol) July 16, 2018
According to the announcement, Marble has introduced a new concept called “flash lending,” where anyone can borrow Ether and ERC-20 tokens to leverage arbitrage opportunities on the Ethereum blockchain. To accomplish this, Marble has developed a smart contract that owns both Ether and tokens, which are made available to low-risk protocols that require a lender.
With Marble, developers and traders are able to easily profit from inefficiencies in illiquid Ethereum assets without using any of their own funds. One of the clearest use cases for the Marble smart contract is decentralized exchange arbitrage.
With flash lending, a trader can borrow from the Marble bank, buy a token on one DEX, sell the token on another DEX for a higher price, repay the bank, and pocket the arbitrage profit all in a single atomic transaction.
While there is little corporate information on Marble at this time, we do know that crypto venture capitalist Arianna Simpson is backing the project. Simpson’s firm, Autonomous Partners, is notable for recently entering into a partnership with billionaire Steven Cohen’s venture investment group.
The Marble beta is currently live, and the bank has a balance of 2 Ether, which serves as a starting bug bounty.
More: Introducing Marble
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.