Protocol Documentation

What is Faza?

Two wallets lock USDC on Arc. Both show up and get it back. One ghosts and the other takes both.

Two counterparties lock USDC into smart contract escrow, commit to verified terms, and settle purely onchain — no admin keys, no gas token juggling, no custodian.

The Problem We Solved

In traditional peer-to-peer agreements, there is no financial friction to prevent ghosting or counterparty default. If someone agrees to attend a meeting, complete a delivery, or honor an OTC commitment, failure to follow through carries zero deterministic penalty.

At the same time, establishing escrow on Ethereum or multi-token L2s for small stakes ($1 to $50) is economically unviable due to gas volatility and the need to purchase separate native gas tokens. Faza solves this by running natively on Arc, where USDC is the gas token and fees cost fractions of a cent.

INSTRUMENT 01

Show-Up Bonds (FazaBond)

A two-wallet mutual stake contract. Both parties lock equal USDC collateral, establish a deadline, and must submit an onchain checkIn() before time expires.

✓ Mutual Attendance
Both wallets check in before deadline. 100% of staked capital is refunded to each party.
✕ Ghosting Penalty
If one wallet ghosts, the wallet that checked in claims both stakes (200% payout).
ONCHAIN PROOFArc Mainnet (5042)

Live Execution Proof: Bond #2

Open Bond #2 Page ↗

The complete bilateral bond lifecycle executed with real USDC on Arc Mainnet. Two independent wallets locked collateral, verified attendance before the deadline, settled onchain, and both claimed their stake back:

Bond Title
Grant demo — show up on Arc
Total Locked
$0.02 USDC ($0.01 each)
Attendance
Both Checked In ✓
Outcome
Settled & Claimed ✓

Verifiable Arc Mainnet Transactions

1. Create Bond· 0x1BDA…8E53 (Creator)
Creator staked $0.01 USDC and set deadline
0xdc6f11a2…d17636 ↗
2. Join Bond· 0x0478…759d (Joiner)
Joiner matched $0.01 USDC into escrow
0xd1a1fb22…f908ee ↗
3. Joiner Check-in· 0x0478…759d (Joiner)
Joiner registered verified onchain check-in
0xf63500e0…d411de ↗
4. Creator Check-in· 0x1BDA…8E53 (Creator)
Creator registered verified onchain check-in
0x5417edc5…df0f7f ↗
5. Settle Contract· FazaBond Contract
Mutual attendance confirmed; stakes unlocked for claim
0x11bde2c4…d2de8a ↗
6. Creator Claim· 0x1BDA…8E53 (Creator)
Creator claimed $0.01 USDC back to wallet
0x2197371c…62e961 ↗
7. Joiner Claim· 0x0478…759d (Joiner)
Joiner claimed $0.01 USDC back to wallet
0x5dee2662…d652ea ↗
INSTRUMENT 02

OTC Deal Tickets (FazaOTC)

A bilateral agreement ticket that hashes commercial terms onchain using keccak256. The buyer can only enter the contract if their local copy of the terms computes to the identical hash.

1. Atomic Onchain PvP Token Swaps
For Arc ERC-20 tokens: Buyer locks USDC purchase price and collateral stake; seller locks collateral stake. At settlement, the contract executes an atomic exchange: tokens to buyer, USDC to seller. If seller defaults, buyer receives a full refund of price plus both stakes.
2. Offchain Asset Agreements with Escrowed Bond
For stock certificates, advisory milestones, or private equity: the contract anchors the terms hash and holds a mutual USDC collateral bond. When the offchain exchange completes, counterparties confirm and retrieve their bonds.

Smart Contract Security Architecture

  • Pull-over-Push Settlement: Settlement functions credit internal accounting mappings (claimable[address]) instead of pushing raw transfers. Users claim their funds independently via claim(), eliminating DoS vectors and reentrancy loops.
  • OpenZeppelin SafeERC20: All token transfers utilize standard, battle-tested OpenZeppelin wrappers.
  • Native Predeploy Integration: Interacts directly with Arc's predeployed native USDC contract at 0x3600000000000000000000000000000000000000.
  • Zero Custodial Override: No admin keys, no DAO overrides, no upgradeability proxies. All bond resolutions execute deterministically.

Live Contracts · Arc Mainnet (Primary Production)

LIVE
USDC0x3600…0000
Chain ID5042
NetworkArc Mainnet

Sandbox Contracts · Arc Testnet (Secondary)

USDC0x3600…0000
Chain ID5042002
NetworkArc Testnet
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