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.
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