Arcare

Arcare is a parametric insurance protocol for DeFi, built on Arc. Users buy YES/NO shares on markets like "Will DAI depeg in 2026?" — the market price reflects real-time perceived risk, like a credit default swap on decentralized stablecoins. Two market types: hack protection (admin-resolved) and depeg protection (automatically resolved by Chainlink price feeds on Sepolia via a multi-level severity system — minor depegs require 20 blocks of confirmation, critical depegs resolve in 1 block). When a depeg is detected, the Chainlink CRE workflow triggers resolution and winners are paid instantly in native USDC on Arc — no forms, no intermediaries, no delays. In March 2023, DAI fell to $0.85 and triggered 3,400 automatic liquidations on Aave. No insurance paid out. InsurArc would have resolved within 3 blocks and distributed USDC to covered users automatically. The AMM prices shares continuously — so the YES token price on any market is a live, on-chain measure of perceived protocol or stablecoin risk. This makes InsurArc not just an insurance protocol, but the first parametric credit risk market for decentralized stablecoins.

Arcare is built entirely onchain with Solidity smart contracts deployed on Arc testnet, Circle's stablecoin-native L1. The core InsuranceMarket contract implements an AMM (x*y=k) between YES and NO ERC-1155 tokens, so the share price continuously reflects market-perceived risk without any centralized pricing authority. The most technically interesting component is the DepegResolver — a multi-level severity system that reads Chainlink AggregatorV3Interface price feeds directly onchain. Rather than a simple threshold, resolution speed scales with depeg severity: a minor depeg below $0.97 requires 20 consecutive blocks of confirmation to avoid false positives from market noise, while a critical depeg below $0.80 resolves in a single block — because at that price, liquidations on lending protocols have already started and every block costs users money. The system never downgrades its active severity level, so if DAI drops from $0.95 to $0.88 mid-count, the block requirement tightens immediately. For price data, we read real Chainlink price feeds (DAI/USD, FRAX/USD, LUSD/USD) deployed on Ethereum Sepolia, giving us battle-tested, manipulation-resistant oracle data. We also built a Chainlink CRE workflow in TypeScript that monitors these feeds off-chain and simulates the automated resolution trigger — demonstrating how the system would operate with a fully deployed CRE DON. The frontend is built in TypeScript with React, using Reown AppKit (WalletConnect) for wallet connection — supporting both MetaMask on desktop and WalletConnect on mobile automatically. It features live charts powered by recharts with a multi-resolution cache system: 1-minute granularity for the last hour, scaling up to weekly candles for year-old markets. USDC is the native gas token and settlement currency on Arc — meaning payouts go directly to covered users in USDC with sub-second finality and no FX conversion, which is only possible on Arc's stablecoin-native infrastructure.