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mashmellow

Marshmallow is a privacy-first DeFi protocol that combines encrypted perpetual futures, prediction markets, and off-chain order flow, powered by Chainlink Confidential Compute and CRE for decentralized price signals and automated private settlement.

Prediction Markets Privacy

What it is

Marshmallow is a privacy-preserving DeFi protocol that integrates leveraged perpetual futures (perps), prediction markets, and encrypted order flow into a single, unified system. It allows users to trade high-leverage positions on real-world events/outcomes while keeping critical details—such as positions, balances, margins, open orders, and exposure—private and largely off-chain, minimizing the risks inherent in fully transparent blockchain trading.
What Problem It Solves
Traditional DeFi perpetuals and prediction markets expose almost everything on-chain:

  • Front-running and MEV exploitation — Bots, searchers, and validators see orders/positions in the mempool or blockchain state → they can front-run trades, sandwich users, or trigger predatory liquidations.
  • Information asymmetry — Public visibility of balances, margins, and positions enables copy-trading, targeted attacks, or competitive disadvantages for retail/institutional traders.
  • Privacy vs. reliability tradeoff — Purely private systems often rely on centralized servers (single point of failure, trust issues, downtime), while decentralized oracles/settlement can be slow, manual, or manipulable.
  • Scalable, objective resolution — Prediction markets need timely, tamper-proof outcome determination (e.g., "Did event X happen?") without manual intervention or centralized arbiters.
  • Unified experience — No seamless way to combine leveraged perps with outcome-based prediction trading under strong privacy guarantees.
    Marshmallow eliminates these by making privacy the default while preserving decentralization for prices, signals, and settlement.

How it Works

  • Backend — Node.js, Express, TypeScript (tsx), Privy + JWT, MongoDB, ethers v6, EIP-712 signing.
  • Frontend — Next.js 16, React 19, Tailwind 4, Privy, Radix, Framer Motion, lightweight-charts, react-hook-form + Zod.
  • Contracts — Foundry/Forge, Solidity (PerpetualsEngine, SimpleMarket, Chainlink oracle, vault scripts), OpenZeppelin.
  • CRE — Chainlink CRE SDK, Bun, cron workflow for perps signals and HTTP calls to the backend.
  • Scripts — api-scripts/: TypeScript + ethers for EIP-712 signed API calls (balances, private prediction, withdraw).

Links

Created by

  • iteoluwakisi.eth