Arcwise Treasury AI – Autonomous USDC Rebalancing and Risk Management Agent

Intelligent USDC rebalancing and risk management agent for on-chain treasury automation on Arc Blockchain.

---

📚 Table of Contents

• 💡 Overview
• 📊 Treasury Dashboard
• 🚨 Problem Statement
• 🚀 Solution
• ⚙️ Core Features
• 🧩 System Architecture
• 🧱 Architecture
• 🧠 Tech Stack
• 🔁 Workflow
• 📦 Deliverables
• 🏦 Use Cases
• 🔮 Future Enhancements
• 📈 Summary
• 🧰 Quick Start (Development)
• 🧭 Deployment Summary
• 🪙 Credits

---

💡 Overview

Arcwise Treasury AI is an autonomous treasury management system built on the Arc Blockchain.
It uses AI-driven decision logic to monitor wallet balances, dynamically rebalance liquidity between main and reserve accounts, and automatically execute USDC transactions on-chain with deterministic settlement.

This project demonstrates how intelligent agents can handle decentralized treasury operations through real-time analytics, rule-based automation, and stablecoin-native financial logic.

---

📊 Treasury Dashboard

The dashboard visualizes the evolution of balances between the Main and Reserve wallets.
Each time the agent executes, new data are appended to data/rebalance_log_compatible.csv and analyzed via the notebook notebooks/treasury_dashboard.ipynb.

Live Balance Overview

Last updated automatically from analysis notebook outputs.

Key Metrics

Metric	Description
Main Balance (USDC)	Current balance of the primary operational wallet
Reserve Balance (USDC)	Current balance of the reserve wallet
Total (USDC)	Combined holdings of both wallets
Main Ratio	Share of main balance in total holdings
3h Change	Net movement of both wallets over the last 3 hours
Volatility Approx.	Rolling 5-sample standard deviation of total balance

---

🚨 Problem Statement

Managing liquidity across multiple blockchain accounts remains a complex process for funds, DAOs, and decentralized organizations.
Manual monitoring and fund transfers are inefficient and prone to human bias and latency.

Challenges include:

• Balancing multiple wallets or liquidity pools in real time
• Forecasting short-term liquidity requirements
• Reducing idle capital and transaction costs
• Ensuring safety, auditability, and transparency

---

🚀 Solution

Arcwise Treasury AI introduces an intelligent on-chain agent that:

1. Continuously monitors wallet balances and historical activity using Arc APIs.
2. Applies AI-based decision logic to determine optimal fund distribution.
3. Automatically executes USDC transfers on the Arc Testnet via deterministic smart contracts.
4. Logs each event with full transparency for compliance and audit purposes.

By leveraging Arc’s USDC-native design and sub-second deterministic finality, the system provides institutional-grade automation for digital treasury management.

---

⚙️ Core Features

Category	Description
AI Decision Engine	Predict liquidity needs with time-series balance data and simple predictive rules.
Autonomous Execution	Automatically transfer funds when ratio thresholds are breached.
Risk Controls	Apply transaction limits, minimum reserves, and safety checks.
Transparent Dashboard	Interactive Streamlit dashboard for real-time visualization.
Comprehensive Logging	All actions logged in JSONL format for auditability.

---

🧩 System Architecture

+-----------------------------+
|      AI Decision Engine     |
| (Rules + Predictive Model)  |
+-------------+---------------+
              |
              v
+-----------------------------+
|   Arcwise Agent (Python)    |
|  - Web3 Integration         |
|  - Smart Contract Calls     |
|  - Event Logging            |
+-------------+---------------+
              |
              v
+-----------------------------+
|     Arc Blockchain Layer    |
|  - Arc Testnet (USDC Gas)   |
|  - Settlement Contracts     |
+-------------+---------------+
              |
              v
+-----------------------------+
|     Streamlit Dashboard     |
|  - Visualization & KPIs     |
|  - Analysis Notebook        |
+-----------------------------+

---

🧱 Architecture

---

🧠 Tech Stack

Component	Tools / Frameworks
Language	Python 3.11
Blockchain SDK	Web3.py
Smart Contracts	Solidity (EVM-Compatible)
Blockchain Network	Arc Testnet + USDC as native gas
AI & Analytics	Scikit-learn, Pandas, NumPy
Frontend / Visualization	Streamlit, Matplotlib
Database / Logging	JSONL + CSV
Environment Management	virtualenv + dotenv

---

🔁 Workflow

1. Balance Fetching: Retrieve real-time balances from both main and reserve wallets.
2. Decision Engine:
   • If main wallet < lower bound → transfer from reserve.
   • If main wallet > upper bound → send excess back to reserve.
3. Execution: Signed transactions broadcast to Arc blockchain.
4. Logging: Results stored locally for audit tracking.
5. Dashboard Analysis: Data visualized via Jupyter Notebook and Streamlit UI.

---

📦 Deliverables

✅ Fully working on Arc Testnet

✅ AI logic + on-chain execution pipeline

✅ Streamlit monitoring dashboard

✅ Analysis notebook with balance visualizations

✅ Comprehensive documentation and modular structure

---

🏦 Use Cases

• Quantitative Funds: Continuous intra-day portfolio rebalancing
• DAO Treasuries: Self-governing liquidity agents
• DeFi Vaults: Autonomous stablecoin management
• Enterprise Treasury: Stablecoin-based working capital allocation

---

🔮 Future Enhancements

• Reinforcement Learning for adaptive liquidity management
• Multi-asset support (EURC, USYC, and other stablecoins)
• NLP-driven command interface (“Rebalance reserve wallet to 40%”)
• Integration with Circle APIs for off-chain synchronization

---

📈 Summary

Arcwise Treasury AI merges AI automation with stablecoin-native blockchain infrastructure. It illustrates a real-world application of data science, quantitative strategy, and on-chain execution, delivering a scalable and transparent treasury automation framework.

---

🧰 Quick Start (Development)

# Clone the repository
git clone https://github.com/yourusername/arcwise-treasury-ai.git
cd arcwise-treasury-ai

# Create virtual environment
python3 -m venv .venv
source .venv/bin/activate

# Install dependencies
pip install -r requirements.txt

# Create .env file
echo "ARC_RPC_URL=https://rpc.testnet.arc.network" >> .env
echo "PRIVATE_KEY_TEST=your_private_key" >> .env
echo "ACCOUNT_ADDRESS=your_wallet_address" >> .env
echo "RESERVE_ADDRESS=your_reserve_wallet_address" >> .env

# Run the treasury agent
python -m agent.main

# Generate dashboard visualization
jupyter nbconvert --to notebook --execute notebooks/treasury_dashboard.ipynb --output notebooks/treasury_dashboard.ipynb

---

🧭 Deployment Summary

Contract Address (Arc Testnet)
0x5b75e285eacafae2a260ed2387ec4440ac7fde76
Deployed via Arc Testnet Sandbox

Explorer Example Transaction
0x010724d591fba63de7a0e09968644147b839bc5923e5d2ce142dddb8828ecb83
Rebalance operation triggered by AI agent

AI Agent Logs:
The agent autonomously triggered a rebalance when the main wallet ratio exceeded 65%.
Example decision output

---

🪙 Credits

Developed by Xirui Chen Data Science & FinTech Enthusiast | Quantitative Research | Blockchain AI

Project originally inspired by the “AI Agents on Arc with USDC” Hackathon, now evolved into a production-ready autonomous treasury analytics framework.