XyloNet

XyloNet is a stablecoin venue deployed on Arc whose core is a StableSwap automated market maker curve modelled on the Curve invariant, so swaps between like-pegged assets have minimal slippage near parity while deviation raises fees automatically to discourage one-sided outflows. Cross-chain movement uses Circle's CCTP v2, burning and minting native USDC across chains to avoid the double backing of wrapped assets; routing runs through a third-party cross-chain router, and the yield side offers ERC-4626 vaults that compound into share price. Contracts are split into four modules, XyloRouter, XyloFactory, XyloBridge and XyloVault.

It addresses the multi-hop friction of stablecoin exchange: moving across chains, swapping and earning usually takes three or more protocols, each leaving fees and intermediaries behind while slippage widens in thin pools. XyloNet folds the three into one routing path, with swaps and bridging sharing a single approval. Arc mainnet carries chain ID 5042, pays gas in USDC and settles with sub-second finality. In September 2026 the project joined the Arc accelerator programme.