ArcCredit protocol
ArcCredit is an Arc-first USDC credit market. The initial protocol deliberately uses a single debt asset — USDC — with a small set of governed collateral assets.
Market model
Liquidity suppliers deposit ERC-20 USDC and receive internal supply shares. Borrowers deposit approved collateral and borrow USDC against governed loan-to-value limits. Interest accrues through a utilization-based kink rate model.
| Debt / supply asset | USDC |
|---|---|
| Initial collateral | WETH, cirBTC |
| Interest | Variable, utilization-based kink model |
| Liquidation | Permissionless when health factor falls below threshold |
| Network | Arc Mainnet, Chain ID 5042 |
Risk model
Collateral is isolated behind explicit LTV, liquidation threshold, liquidation bonus and collateral caps. The market also has a USDC borrow cap, oracle freshness requirements, reserve accounting, insolvency handling and emergency pause controls.
borrow power = Σ(collateral USD value × LTV) health factor = liquidation-adjusted collateral / current debt
A normal risk pause blocks new risk while allowing repayment, lender withdrawal and required liquidations. A liquidation emergency pause also blocks new risk.
Governance
The intended production authority path is Safe multisig → Timelock → Pool / Oracle. A guardian can trigger emergency pauses but cannot immediately rewrite risk parameters or extract reserves.
Integration
Read-only integrations should use the public HTTP API documented in the API reference. Transaction integrations should use the deployed Pool ABI and verify the release manifest, contract bytecode, USDC address, Oracle and Timelock before enabling writes.