Multilateral netting, built on Arc

Contraflow finds loops of debt between counterparties and nets them out, so money that would only go round in a circle never has to move.

The problem

Circular debt is common wherever counterparties trade with each other in a loop. Programmatic advertising settlement chains are one example, and the same shape shows up in supply-chain payables and freight. Each party pays and gets paid in full, when the debts could net out directly.

Contraflow records each debt with both parties' signatures, finds the loops among them, and nets each loop out in one step: a single transaction for USDC invoices on Arc, or one certificate signed by everyone for obligations in any currency. Contraflow never holds your funds and takes no cut.

Mission

Let counterparties who owe each other in a loop net it out directly, without a central clearer and without moving money they'd only get straight back.

Invoices on Arc

USDC invoices signed by both sides and registered on Arc. A loop of them cancels in one transaction that anyone can submit.

Offchain obligations

Debts in any currency, signed by both sides and kept offchain. A loop nets out with one certificate everyone signs, recorded on Arc so it can't be netted twice.