How it works

A coin on Arc Perp has two lives. First it is a normal memecoin trading against dollars. Then, once its own trading has put enough money behind it, it becomes a coin backed by a leveraged position on a real stock. The first life is not a waiting room: the coin is fully tradable from its first block.

   LAUNCH                 TRADE                  BOND                  BACKED
   ──────                 ─────                  ────                  ──────
   you pick a stock,      buyers push the        pool holds $15,000    coin now trades
   a direction and        price up the curve,    of USDC; the          against NVDAx5;
   a multiple; one        sellers push it        protocol re-pairs     its floor moves
   transaction, $1 seed   down; USDC piles       it to its tracker     with Nvidia at 5×,
                          up in the pool         at the same price     long or short
        │                     │                      │                     │
        └── 0.7% of every swap goes to you, at every stage, forever ───────┘

1. Launch

You choose a name, a ticker, an image, and the stock your coin will be backed by — plus long or short, and a multiple from 1× up to 5×. You make a small opening buy of your own coin ($1 minimum), in USDC. Gas on Arc is paid in USDC too, so USDC is the only thing your wallet needs. Once the transaction confirms:

• all 1,000,000,000 coins are minted and placed in a single Uniswap V3 pool against USDC;
• the pool position is handed to a locker that has no way to give it back;
• your coin is live, priced, and reachable by any bot or router.

Nothing else is needed. You do not pair your coin with dollars: the position holds only the coin, so there is nothing to fund. See Launching a coin.

2. Trade

Buyers push the price up the curve; sellers push it back down. Each swap pays the pool's 1% fee, split 70/30 between you and the protocol. The dollars buyers pay in stay in the pool as the coin's backing.

That backing figure is the one to watch. It is not a valuation. It is the real USDC the coin's own trading has put behind it, and it is what the coin can actually pay out. See Buying & selling.

3. Bond

When the pool holds $15,000 of USDC, the protocol bonds the coin: its keeper watches every pool and sends the transaction as soon as the threshold is met. The call is permissionless all the same — the coin page keeps its button, and a stranger paying the gas would get exactly the same result.

In one transaction, the pool's contents leave the USDC market and go into a new market quoted in the coin's leveraged tracker, at the same dollar price. Holders do nothing. Their coins never move and their balances do not change. What changes is what sits behind them. See The bond.

4. Backed

From then on the coin trades as YOURCOIN / NVDAx5 (or whichever tracker you picked). The backing is no longer idle dollars: once the tracker's own vault holds $15,000 of backing, the keeper opens a leveraged long or short on the real stock on edgeX, an order-book perpetuals exchange, in an edgeX account kept for that one tracker by the protocol's hedge wallet. When Nvidia moves 1%, a 5× tracker moves about 5% — and so does the floor under your coin, whether or not anyone trades it that day.

Your fees keep flowing exactly as before. See Leveraged trackers and, for where the money sits and who holds which key, The hedge book.

The whole thing in one table

Nobody decides whether a coin bonds: the threshold does. The protocol is simply what pays the gas when it is met.

Two things worth knowing before you go on

• Leverage cuts both ways. A backed coin's floor rises fast when the stock goes its way and falls fast when it does not. A 5× tracker also loses ground when the stock chops sideways, and it pays funding every 4 hours. See NAV, decay & funding.
• The liquidity really cannot leave — the hedge is a different matter. The locker holding every coin's pool has no withdraw function at all, not for the creator, not for us (see Locked liquidity). The position behind a tracker, by contrast, sits on an exchange and is managed by a key: what that key can and cannot do is in Risks & security.