Welcome to The Arena⚔️

Go long/short any token on Solana... with leverage

Solana is producing 50K tokens per day, but users can’t trade them. Traders are forced to just buy and sell. They can’t short, they can’t lever long, they can’t hedge.

Today, we fix that forever — for every single token, instantly. Welcome to The Arena.

Overview

The Arena is built on marginfi’s new permissionless groups. marginfi has pioneered a flexible group structure, enabling any team to create lending pools of select assets with collateral weight against each other.

This is a massive unlock to new teams building crypto products. Any team in need of credit solutions can now use marginfi’s open-source, double-audited, code verified, stress-tested contracts while still being opinionated about the assets and collateral weights you want. You can benefit from our liquidity network, our userbase, our liquidators, our risk systems, and our off-chain tooling. Building credit infrastructure doesn’t let teams focus on the actual product they’re building. Now you don’t have to — immediately plug into a custom source of yield and leverage to suit your needs. There’s 20+ teams already doing this — if this is you, get in touch.

Back to The Arena. The most well known margin group is the marginfi main group which supports a variety of different assets and allows them to be borrowed against each other.

The Arena will spin up new groups for each token that gets listed. Users will select the token(s) they want to create a pool for and control the parameters and oracles. Each token will be paired against USDC (to start) with support for other quote tokens coming soon. If you’re an asset issuer on Solana who wants your token highlighted, get in touch.

Trading

To go long, users deposit tokens and borrow USDC to acquire more of your target token. To go short, users deposit USDC and borrow the target token, selling for USDC. But don’t worry — this happens in one click, using marginfi’s flashloans. 

While most long tail leverage platforms struggle to bootstrap synthetic liquidity, The Arena is able to tap into existing liquid spot markets.

Providing liquidity

Users who don’t wish to trade but own the group token or USDC can choose to LP and earn yield generated by traders. If you’re a hodler, now you can hodl and get paid for it. No impermanent loss, no active management needed.

Each USDC deposit will only be lent against the group token and not be accessible in other groups. This includes the main marginfi group. From a risk perspective, no funds in The Arena will share liquidity with margin’s main pool! Main pool lenders and borrowers are completely isolated from The Arena.

Access and roll out

For the initial launch, 5 tokens will be available to trade. Permissionless listings will come shortly after, enabling any token to be listed and administered by community members. If you want to run a custom campaign with your token, or get your token highlighted on The Arena, reach out.

Early access is being rolled out for mrgn community members. If you’re reading this — that’s you. Substack and email subscribers get early access from now on :)

Use code: enterthearena to access The Arena

Full public launch will follow in the coming days. Subscribers get notified first.