Use cases

How Arc Supports Onchain Trading and DEX Infrastructure | Arc Blueprints

Ben Morris
VP, Business Development, Exchanges
October 29, 2026
5
min read
October 29, 2026
5
min read

Summary

Arc brings stablecoin-denominated gas, deterministic sub-second finality, and composable liquidity to onchain trading. These properties give DEX, AMM, orderbook, and perpetual trading teams a more predictable base for execution, settlement, and market operations. With USDC, cirBTC, tokenized assets, lending markets, interoperability, and established trading infrastructure live from launch, Arc connects open DeFi innovation with the operational requirements of professional market makers, global trading desks, and other institutional traders.

Onchain markets compete on execution quality. Traders want price certainty, market makers need costs they can forecast, and protocol teams need confidence that a confirmed state will not change beneath their risk engine.

Arc is an open, stablecoin-native blockchain built to support onchain trading and other internet-native economic activity. Transactions on Arc reach deterministic finality in under a second, network fees are paid in stablecoins, and trading apps can connect to stablecoins, tokenized real-world assets (RWAs), lending markets, and crosschain infrastructure. For automated market makers (AMMs), orderbook venues, aggregators, and perpetual platforms, those properties create a predictable foundation for building and operating trading markets. Each of these unique Arc properties addresses a specific cost that onchain trading teams currently absorb.

Onchain trading friction: probabilistic finality, volatile gas, and fragmented liquidity

Decentralized exchange (DEX) infrastructure has advanced quickly, but several costs remain structural. Probabilistic finality forces apps to account for reorganizations or wait through confirmation buffers before treating a trade as irreversible. Gas paid in a volatile native token introduces a second market exposure into every swap, rebalance, and liquidation. Liquidity and collateral also remain fragmented across chains, bridges, and protocols.

Slippage and maximal extractable value (MEV) sit in a different category. Liquidity depth, transaction ordering, and venue design determine most of that exposure, and no base layer resolves it on its own. Fast finality alone does not prevent front-running or sandwich attacks. It does, however, reduce uncertainty after a transaction reaches deterministic finality and shorten the period between execution and irreversible settlement. For teams building professional trading markets, that means the base layer can support deterministic settlement, while the protocol applies the execution controls appropriate to its model.

For institutional trading desks, the needs extend beyond performance. They also need reliable custody, risk monitoring, policy controls, and assets that fit existing collateral and treasury frameworks. A chain may support smart contracts without supplying the broader market structure required for institutions to participate at scale.

How Arc strengthens onchain trading and DEX infrastructure

The chart below sets Arc's approach against the tradeoffs common to onchain trading today. Individual chains and venues vary, and protocol design, liquidity, and order flow still shape the outcome of any single trade.

Common DEX setup vs. Trading on Arc
Common DEX setup Trading on Arc
Settlement finality Confirmation buffers and residual reorganization risk Deterministic finality in under a second
Transaction costs Gas paid in a volatile native token Low, predictable fees paid in stablecoins, starting with USDC
Liquidity access Assets and liquidity split across chains and bridges Native stablecoins, CCTP, Gateway, and integrations with 20+ blockchains
Collateral and market inventory Predominantly crypto-native or wrapped assets USDC, EURC, and tokenized funds alongside Circle Wrapped Bitcoin (cirBTC) and other crypto-native assets
Institutional operations Compliance, custody, and monitoring assembled separately Institutional validators plus a live ecosystem of custody, compliance, security, and market data providers
MEV and execution risk Determined by venue and transaction-ordering design Still protocol-specific, while fast finality reduces uncertainty after a transaction reaches deterministic finality

For a team deciding where to deploy, finality, transaction costs, access to liquidity and collateral, and institutional operations tend to matter most, because those are the areas the base layer controls. Execution risk depends more on how each venue is designed, so the sections below focus on those.

Sub-second deterministic finality tightens the trading loop

On Arc, confirmation is finality. There is no block-counting period and no reorganization window after a transaction confirms. For AMMs, each finalized block provides a clear point to update pool balances. Orderbook and request-for-quote (RFQ) venues can quickly reconcile execution with onchain balances. Perpetual platforms can build margin, liquidation, and collateral logic around a state that becomes irreversible in under a second.

Finality does not eliminate slippage or MEV, which remain functions of venue design. What it gives protocol teams is a clear, reliable view of which transactions are settled. Market makers can recycle capital with less settlement ambiguity, aggregators can route trades using the latest available prices and liquidity, and risk engines can react without padding their logic with long confirmation buffers.

USDC-denominated gas makes trading costs easier to model

Arc uses USDC as native gas, keeping transaction costs stable and dollar-denominated through changes in network demand. A trader already holding USDC does not need a separate gas token to submit a transaction.

For market makers, this benefit compounds across quoting, rebalancing, arbitrage, collateral transfers, and liquidations. Network costs become a forecastable operating input instead of a changing exposure tied to gas token volatility. DEX teams can simplify onboarding and fee abstraction because the unit used to trade, settle, and pay gas is the same one users see everywhere else in the application.

Composable liquidity and tokenized assets expand what venues can list

Arc launched with assets and financial primitives that compose across three functions: trading, lending and borrowing, and settlement. USDC and EURC provide stablecoin liquidity while tokenized funds like BUIDL, JAAA, JTRSY, and USYC bring additional assets into the same programmable environment. Circle Wrapped Bitcoin (cirBTC) can serve as crypto-native trading inventory or collateral, subject to each third-party protocol’s risk framework.

Liquidity becomes more useful when it can move between functions. A position can be traded, posted as collateral, borrowed against through supported third-party protocols, then routed across applications without leaving the network. Through CCTP and Circle Gateway, builders can also connect Arc markets to crosschain liquidity across more than 20 blockchain ecosystems.

Open DeFi access with institutional-grade operations

Arc is open and EVM-compatible, so teams can deploy without seeking permission. At the same time, the network launched with institutional validators and an ecosystem that includes third-party providers of custody, compliance monitoring, security, risk management, oracles, and market data.

That combination gives DEX and DeFi teams a practical path to serve both open markets and policy-sensitive participants. Protocols still own their licensing, access, surveillance, and control decisions. Arc supplies the infrastructure to build those workflows, including future opt-in privacy capabilities designed to give trading desks selective confidentiality without giving up auditability.

Teams can also get from prototype to production faster. Arc Studio, Arc’s AI coding agent, generates, previews, and deploys smart contracts and full-stack apps on Arc testnet, and lets developers check their contracts for security and Arc-specific issues as they build. Before launch, teams can run Arc-specific predeploy checks with Arc Foundry, bring questions to technical office hours with the Arc team, and, if they qualify, apply for funding toward an independent third-party audit through Circle’s Grant Program.

Arc's DEX and perpetuals ecosystem is already live

Sub-second finality, USDC-denominated gas, composable liquidity, and institutional-grade operations are easier to evaluate on a network that is already carrying order flow. Arc has been carrying it since launch.

cirBTC was available on Uniswap for swaps and liquidity provision on day one. Aero provides another established spot-liquidity venue. The wider launch ecosystem includes 0x, 1inch, LI.FI, and other services spanning aggregation, routing, and crosschain execution.

Orderbook and derivatives teams are part of the market structure as well. Extended, a perpetual DEX, has launched natively on Arc, making it a flagship venue for perpetual trading on the network. edgeX supports deposits, withdrawals, and collateral on Arc, while Synthra is developing an Arc-native trading layer for spot, liquidity, and perpetual products.

As of October 26, 2026, DeFiLlama reported approximately $632 million in total value locked (TVL) on Arc, $962 million in stablecoin supply on the network, $198 million in DEX volume over a seven-day period, and approximately $733 million in perpetual trading volume over the same period. These weekly figures are an early snapshot rather than a forecast, but they show that Arc's trading stack is in active use.

Build the next onchain market on Arc

Trading venues need more than throughput. They need final settlement, costs that fit a business model, assets worth trading, liquidity that can move across applications, and operational infrastructure that supports serious market participants.

Arc brings those pieces into one stablecoin-native environment. For established protocols, that means they can create a new venue connected to Circle’s asset, interoperability, and institutional ecosystem. For new teams, it means starting with market infrastructure already in place rather than assembling every component from scratch.

Start building on Arc.

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Circle has commercial relationships with 0x, 1inch, Aero, EdgeX, Extended, LI.FI, Synthra, and Uniswap.

Arc is an open L1 blockchain launched by Arc Network Services LLC ("Arc LLC") and operated by a permissioned validator set. Arc LLC provides software services only and does not offer regulated financial or advisory services. Arc has not been reviewed or approved by the New York State Department of Financial Services or any other regulatory authority.

The Arc network is provided "as is" and "as available." Use of Arc involves inherent risks associated with blockchain technology, including smart contract vulnerabilities, network disruptions, and the absence of recourse for transaction errors or losses. The ability to transact on Arc depends on the ability to obtain and use USDC to pay gas fees. Neither Arc LLC nor any permissioned validator is responsible for the content, accuracy, legality, or functionality of third-party applications, protocols, or services built on or integrated with Arc. You are solely responsible for features or services you provide to users, including obtaining any necessary licenses or approvals and otherwise complying with applicable laws.

All Arc features may be modified, delayed, or cancelled at any time without notice. Nothing herein constitutes a commitment, warranty, guarantee or legal, regulatory, tax, or investment advice.

USDC and EURC are issued by regulated affiliates of Circle. See Circle’s list of regulatory authorizations.

cirBTC is issued by Circle International Bermuda Limited, a Class F Digital Asset Business licensed and regulated by the Bermuda Monetary Authority. Circle Mint and related distribution services are provided by Circle Internet Financial, LLC, NMLS # 1201441.

CCTP is a crosschain messaging infrastructure service provided by Circle Technology Services, LLC ("CTS"). CCTP is non-custodial; CTS does not hold, control, manage, or transfer user assets or act as a transfer agent, registrar, broker-dealer, investment adviser, or clearing agency. CCTP is not a financial, payment, or advisory service and has not been reviewed or approved by NYDFS or any other regulatory authority. Transfers are irreversible; CTS cannot recover assets sent to an incorrect address. CTS does not vet, endorse, or back third-party assets; such assets are subject solely to the applicable third-party terms and risks. Issuers are solely responsible for their services and compliance with applicable laws. Any fee estimates are non-binding previews; actual fees may differ. Assets are subject to a number of risks, including, but not limited to, price volatility and smart-contract, relay, and bridge vulnerabilities. Availability is subject to change. Developer terms apply.

Gateway is software infrastructure provided by Circle Technology Services, LLC ("CTS"). Gateway is non-custodial; CTS does not hold, control, manage, or transfer user assets or act as a transfer agent, registrar, broker-dealer, investment adviser, or clearing agency.  Gateway is not a financial, payment, or advisory service and has not been reviewed or approved by NYDFS or any other regulatory authority. Fee estimates are previews only; actual fees may differ. Deposit times vary by chain and network conditions; deposits may be delayed or fail. Source-chain burns are irreversible. USDC only. Eligibility and geographic restrictions apply. Developers are responsible for their own compliance obligations. CTS may modify or discontinue this feature at any time. Developer Terms https://console.circle.com/legal/developer-terms apply.

USYC is a digital asset token. Each USYC token serves as a digital representation of a share of the Hashnote International Short Duration Fund Ltd. (the “Fund”), a Cayman Islands registered mutual fund. The Fund has appointed Circle International Bermuda Limited (“CIBL”), a Bermuda Monetary Authority licensed digital asset business, as its token administrator, responsible for the management of USYC on behalf of the Fund.  

Shares of the Fund and USYC are only available to non-U.S. Persons, as defined under the Securities Act of 1933, as amended. Additional eligibility restrictions may apply.  The information provided herein is solely for educational and informational purposes and should not be construed as an offer to sell or a solicitation of an offer to buy any security, financial instrument, or other product.

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