Arbitrage trading is capitalizing on the differences of price in the same asset across two or more exchanges. Arbitrage trading with cryptocurrencies holds relatively reliable opportunities in turning profit on inefficiencies in the marketplace. In the initial stages of Bitcoin trading, it was often possible to arbitrage trade manually, but as the marketplace itself grew more efficient, today this type of trading is most often performed by trading bots. However, there are few platforms available that provide the user with a convenient experience when trading in sophisticated offerings, such as arbitrage.

Nimbus Platform is a new kind of financial service, which states as its goal to democratize wealth generation by increasing access to financial and investment products to a worldwide audience. Nimbus Platform offers their global user base a palette of services, which have previously only been accessible to accredited or sophisticated investors in a limited number of developed economies. Indeed, the platform intends to offer a secure instrument to access the financial system to everybody.

The platform offers the users unparalleled security, convenience, ease of use, performance, scalability and cross-platform functionality through the Nimbus Platform.

Apps on the Nimbus Platform can be installed through the Nimbus Marketplace. The service collects investment products developed for example: Stocks, ETF's, Cryptocurrencies, Pre-IPO's, IPO's, and REIT's. The leading product at launch on the Nimbus Marketplace is the Avalon App.

Avalon Engine

Avalon app is a dedicated application for arbitrage trading exclusively on the Nimbus Platform via the Nimbus Marketplace. The user provides funds for the Avalon app to use, and receives daily rewards to their balance. Interest is accrued daily to the main balance in NMBT -tokens, according to a fluctuating daily interest rate. The tokens can be withdrawn at any time by request.

The system technically works through spatial and statistical arbitrage, which means that the underlying algorithm scans for market inefficiencies in individual exchanges, and capitalizes on the price differences of individual assets. The trading is done on margin. The platform maintains a reserve fund to protect against margin calls. Maximum drawdown is set at around 3-4%. The trading itself is conducted via trading bots. The humans take the role of a developer.

The investor receives income via the internal NMBT -token. The token minimizes the transactions between the Avalon app and the Nimbus Platform. The user has to redeem their tokens: unredeemed tokens are automatically transferred back to the reserve fund.

Token metrics:

Token type: Ethereum, ERC-20

Starting price: 0.00005 BTC

NMBT is regulated via the Avalon Engine. BTC is used as a trading hedge regardless of the asset being traded. Token emission is produced daily on a fluctuating interest rate, calculated by the Avalon Engine of surplus from trading. Selling NMBT causes the token to be redeemed.

The Avalon App runs an incentivized referral program, which allows the referring user to earn income through their referrals via the Avalon app.

Cryptocurrency exchanges that are currently available on the Nimbus Platform and the Avalon app are OKEx, Bitfinex, Bitmex, and the service will be launched soon on Binance as well.

There are currently few if any comparable services in the wider blockchain economy fully comparable to the Nimbus Platform. While there are opportunities for arbitrage between different cryptocurrency exchanges available for technical users and some services offering strategies in sophisticated trading, the user of Nimbus Platform and the Avalon app gain notable leverage by pivoting their trading onto a single, easy to use app. Hence, the service has a fair chance to become a success story.

(The above story first appeared on LatestLY on Oct 15, 2020 11:03 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website