01 / CREDIT RESEARCH

Before the loan.

WETH or cirBTC as collateral. USDC as the proposed loan asset. These are the questions to resolve before choosing a market, with a private workspace to investigate them. No approved assets, deposits or borrowing are live.

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THE RESEARCH FILES

What a lending market must answer.

CURRENT STAGENo live marketsTwo collateral candidates · no market selected

The proposed first scope is USDC borrowing against one reviewed collateral asset on Arc. WETH and cirBTC are candidates, not approved assets. These editorial briefs set out the work required to select one market; they are not completed assessments.

Bridge risk, custody, liquidity and repayment need market-specific review. No collateral deposits, lender deposits or borrowing are live.

RESEARCH / 01Illustrative · not assessed

Market requirements

The bridge is part of the collateral

WETH is a candidate, not approved collateral. Before treating an Arc token as ETH exposure, trace its backing, bridge controls and route back to the underlying asset.

WETH on ArcBridge and redemption review

An illustrative research prompt, not a completed assessment, supported asset or lending offer. No provider or partnership is confirmed.

QUESTIONS BEFORE A MARKET OPENS

Scope: Review the exact Arc WETH deployment, its bridge, upgrades, pause controls and exit path. No collateral contract or lending venue has been selected.
Still unresolved: If the bridge pauses or exits are delayed, can liquidators still sell this WETH for USDC on Arc? Which control failures could break its connection to ETH?
Work required: Verify the official contract and bridge configuration, then test paused exits and local price discounts before proposing collateral or borrowing limits.

Read the credit thesis

RESEARCH / 02Illustrative · not assessed

Risk scenario

Bitcoin backing is not the exit price

A wrapped-Bitcoin token needs its own risk review. The price of BTC does not prove that cirBTC can be redeemed or sold for the same value when a borrower needs an exit.

cirBTC as a candidateCustody, redemption and depeg review

An illustrative research prompt, not a completed assessment, supported asset or lending offer. No provider or partnership is confirmed.

QUESTIONS BEFORE A MARKET OPENS

Scope: Investigate cirBTC custody, reserve evidence, redemption eligibility, issuer controls and executable Arc pricing. cirBTC is not approved collateral and is not native BTC.
Still unresolved: Who may redeem cirBTC, on what timetable, and what happens during a custody incident or redemption pause? Can the oracle detect a discount to BTC rather than ignore it?
Work required: Check issuer terms and live token-price sources, then stress-test redemption delays, stale prices and depegs. Do not set a borrowing limit from an unverified feed.

Read the credit thesis

RESEARCH / 03Illustrative · not assessed

Risk scenario

A price drop is also an execution problem

A liquidation threshold is not an exit guarantee. Selling WETH or cirBTC must actually recover USDC after slippage, gas and liquidation costs, including during a sharp drawdown.

WETH or cirBTC liquidationsUSDC recovery under stress

An illustrative research prompt, not a completed assessment, supported asset or lending offer. No provider or partnership is confirmed.

QUESTIONS BEFORE A MARKET OPENS

Scope: Assess token-specific oracles, executable Arc market depth, price impact, liquidator access and failed transactions. No liquidator or recovery arrangement is represented as appointed.
Still unresolved: Can a liquidator acquire USDC and sell the seized collateral when depth disappears? How are shortfalls, lender losses and any remaining borrower obligation allocated?
Work required: Simulate price shocks, stale oracles, failed swaps and partial recovery before selecting risk limits. Show borrowers the conditions that could trigger a forced sale.

Read the credit thesis

RESEARCH / 04Illustrative · not assessed

Market requirements

USDC out. Debt paid. Collateral back.

USDC is the proposed loan asset, not a funded credit line. The review must cover available liquidity, changing interest, repayment and the conditions for releasing collateral.

USDC liquidity and repaymentA complete borrowing lifecycle

An illustrative research prompt, not a completed assessment, supported asset or lending offer. No provider or partnership is confirmed.

QUESTIONS BEFORE A MARKET OPENS

Scope: Evaluate one existing market for USDC borrowing against a candidate asset. No provider, committed balance, interest rate or public lender-deposit facility has been confirmed.
Still unresolved: What USDC can actually be borrowed now, at what variable cost? After partial or full repayment, when can collateral be withdrawn, and what changes if a liquidation is already underway?
Work required: Verify available liquidity and contract-level repayment accounting, including rounding, remaining debt and withdrawal limits. Keep lender funds separate from the operating treasury.

Read the credit thesis

4 illustrative research briefs. None establishes demand, collateral eligibility, a borrowing limit, lender commitments or expected returns. A familiar token ticker is not an approval to borrow.

YOUR PRIVATE WORKSPACE

Saved drafts.

Stored on the server, visible only to your signed-in account. These are private research notes, not loan applications, approved collateral or commitments to supply capital. Current research considers WETH or cirBTC for USDC borrowing on Arc. Existing notes retain their original content; archived-network records remain read-only.

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