sugarc

Sugarc is tokenized invoice factoring on Arc. It connects small businesses (SMBs) that need cash flow with liquidity providers (LPs) who earn yield. The system focuses on payer credit risk rather than distressed debt: invoices are active, collectible receivables with defined due dates. Once an invoice is funded, the customer is notified with updated payment instructions, and offchain payments are settled back onchain in USDC. Sugarc demonstrates how real-world cash flows can be transparently financed, priced, and settled using agents and chain-abstracted liquidity on Arc.

SMBs: Upload an invoice (PDF or manual) → receive a USDC advance (up to 95% of face value) → payers repay via bank wire → repayment settles onchain. Payer emails include a pay link with wire instructions. LPs: Deposit USDC into risk-tiered pools (Prime, Standard, High Yield) on Arc. USDC can be deposited from Base Sepolia or Ethereum Sepolia via Circle Gateway, with Arc as the liquidity hub and no manual bridging. Payees: Receive a normal bank wire information that utilized Circle Mint to actually settle the invoice onchain and pay back into the Vault contract for LP payouts/yield. Auth: One-click Google sign-in creates a Circle user-controlled Wallet (no MetaMask or seed phrase). The operator wallet (Circle dev-controlled wallet) acts as a delegate to sign burn intents so users don’t need native tokens on Arc for using the Gateway.

Sugarc was built hacking solo using a Next.js frontend and API backend, smart contracts on Arc, and Circle’s developer stack. Authentication and transactions are handled via Circle Wallets, while USDC liquidity is pooled in a custom PoolVault smart contract deployed on Arc. An AI underwriting agent runs server-side and uses MCP-style tool connectors (stubbed for the hackathon) to gather payer risk signals, combine them with invoice data and a Stork oracle snapshot, and deterministically compute pricing, pool assignment, and advance amounts. Invoices are tokenized onchain when funded, and repayments are settled in USDC, with a demo flow simulating real-world bank payments via Circle Mint’s sandbox. The project integrates Circle Contracts for deployment and event monitoring, and is designed to treat Arc as a liquidity hub, with a clear path to sourcing and routing USDC across chains via Circle Gateway.