BulwArc

Hedging FX risk without a bank. On-chain EUR/USD options settled in USDC & EURC on Arc

BulwArc

Created At

ETHGlobal Cannes 2026

Project Description

BulwArc is a peer-to-peer FX protection protocol built on Arc. It lets European remote workers paid in USD hedge against EUR/USD fluctuations — without banks, brokers, or intermediaries.

A subscriber (the worker) creates a "shield" by setting a strike price, a notional amount, and a premium. Guardians — anyone willing to take the other sidelock USDC collateral to match the shield, earning the premium in return. If EUR/USD drops below the strike before expiry, the subscriber exercises and receives a payoff proportional to the move. If not, the guardian gets their collateral back.

Shields support fractional liquidity: multiple guardians can partially fill a single shield, making it easier to match large notionals. An employer or third party can also fund shields on behalf of their workers.

Settlement is fully on-chain, conditional on a price oracle, and denominated in USDC — Arc's native gas token. No off-chain matching, no custodian, no trust assumptions beyond the smart contract.

How it's Made

This project combines smart contracts on ARC with an AI agent running on-chain, along with a lightweight dApp. BulwArc interacts with two Circle stablecoins, EURC and USDC. The FX pair is managed by an external on-chain oracle; if no oracle is available, a custom one can be deployed and manually updated with pricing data.

The smart contract stack is built using Solidity and Foundry for development, testing, and deployment. An AI agent monitors positions after expiration, checking whether funds should be swapped based on strike conditions. Viem is used to track on-chain events and trigger smart contract functions accordingly.

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BulwArc | ETHGlobal