Onchain protection protocol · Arc

covered by design.

The protection layer for Arc. Coverage for token loss events, settled automatically in USDC.

What HERA is

a protection layer, held in reserve.

HERA is a protocol on Arc that maintains a transparent onchain reserve and uses it to cover verified token loss events. Protocol activity funds the reserve; monitoring watches the chain without interruption; when an event is verified and the dispute window closes, eligible holders are settled in USDC without filing anything by hand.

01
continuous monitoring
Liquidity, supply and transfer behaviour are observed across Arc without interruption, so a loss event is detected close to the moment it occurs rather than long after the fact.
02
transparent reserve
The protection reserve is held onchain and is verifiable at any block. Its allocation, its balance and every settlement leaving it are public by construction.
03
automatic usdc settlement
Because Arc settles in USDC natively, eligible holders receive a stable-value settlement directly. No claim form, no queue, no discretionary approval.

How it works

four movements, one reserve.

01
activity funds the reserve
A fixed share of protocol fees is routed into the protection reserve at the point of collection. The reserve grows with usage rather than with promises, and its allocation is set in the contract, not decided after the fact.
02
monitoring runs across arc
Covered tokens are watched continuously. Liquidity depth, supply changes, ownership state and transfer permissions are sampled block by block and compared against the thresholds that define a loss event.
03
loss events are verified onchain
When thresholds are crossed, the event is declared and the evidence is written onchain: the block, the transaction, the measured change. A dispute window opens before anything is paid, so a declaration can be challenged while it is still reversible.
04
eligible holders are settled in usdc
Once the window closes, the settlement set is computed from pre-event balances. Payouts are pro-rata, capped at each holder’s verified loss and at the per-event share of the reserve, and are sent in USDC.

The reserve

the position, stated plainly.

Protection reserve

Statement of position

Arc · USDC denominated

Reserve balance: Available at launchUSDC
Total settled: Available at launchUSDC
Events verified: Available at launchcount
Covered holders: Available at launchaddresses

HERA has not launched. These figures are published from the reserve contract the moment it is live, and are not estimated, projected or modelled before then.

Contract address: TBA

Coverage criteria

what is covered, and who is covered.

Coverage is defined narrowly and mechanically. Both columns must hold: the event must qualify, and the address must be eligible.

What qualifies as a loss event

Liquidity removal: A material withdrawal of pooled liquidity that leaves holders unable to exit at a reasonable depth, measured against the pool’s own recent baseline.
Supply manipulation after renouncement: New supply minted, or existing supply moved, from a contract that was represented as fixed or renounced at the time of purchase.
Blocked transfers: Transfer or sell paths disabled for holders generally, whether through a blocklist, a tax set to a prohibitive level, or a paused transfer function.
Abnormal collapse within a short window: A price and liquidity collapse steep enough, and fast enough, to fall outside normal market behaviour for the token’s own trading history.

Who is eligible

Minimum holding period: The address must have held the position for a minimum period before the event block. Draft parameter: 24 hours.
Pre-event purchases only: Only balances acquired before the event block are counted. Anything acquired during or after the event sits outside coverage.
Deployer-linked addresses excluded: Addresses linked to the deployer, the treasury or the liquidity provider by funding path or control are removed from the settlement set.
Minimum token age and volume: The token itself must clear a minimum age and traded volume before it can be covered, so a token cannot be created and drained inside the coverage window.

Settlement feed

the record, as it happens.

Preview

Arc · settlement log

Preview only. The rows below are sample data illustrating the format of the live feed. The feed reads from the indexer once HERA is live.

Questions

the things worth asking.

HERA covers verified loss events on tokens that meet the protocol’s minimum age and volume requirements on Arc: liquidity removal, supply manipulation after renouncement, blocked transfers, and abnormal collapse within a short window. It does not cover ordinary market losses. A position that falls in value because the market moved is not a loss event, and will not be settled.