Mechanism

The pipeline

Every stage is on-chain and permissionless. ArcYield adds nothing before listing and controls nothing after it; the protocol only observes the registry and holds the result.

Listing

An asset is issued on Arc by Circle or by a third party: a stablecoin, a tokenized fund share, a tokenized deposit. It exists as an ERC-20 with a float. Anyone can call register(token) on the AssetRegistry, which checks that the address has code and a non-zero supply, then snapshots that supply normalised to six decimals, the USDC convention.

Non-USD stablecoins such as EURC settle against USDC through StableFX, Arc's native FX engine. Both USD and FX instruments are indexable; FXX exists specifically for the second kind.

Indexing

A listed asset becomes eligible for vaults once it clears two thresholds:

• Age: at least 7 epochs (7 days) since listing.
• Float: at least 25,000 USDC-equivalent of supply on Arc.

Vaults weight eligible assets by float, capped at 15% each, with excess weight redistributed pro rata over uncapped names. When the cap cannot place all the weight, the remainder stays in USDC, which on Arc is both the settlement asset and the gas token.

Yield

Constituents earn: USYC accrues treasury-bill yield in its price, EURC carries the USD/EUR rate differential against USDC. Each vault holds the constituents directly; at every epoch rebalance the executor marks positions and folds harvested yield into the basket. Nothing accrues to a treasury, and there is no performance fee in the current deployment. Yield shows up as NAV drift, not as a separate reward token.