An autonomous AI arbitrage agent operating on Arc Testnet, scanning cross-DEX price spreads for EURC/USDC and executing profitable trades with on-chain reputation tracking.
SpreadHunter is a hybrid deterministic + AI arbitrage agent that continuously monitors price spreads across decentralized exchanges on Arc Testnet. When a profitable opportunity is detected, it generates a natural-language reasoning trace via an advanced LLM, executes the trade, and records its reputation on-chain via the ERC-8004 Agent Registry.
flowchart TD
subgraph Arc["Arc Testnet"]
DEX[("DEX Liquidity Pools")]
ERC8004{"ERC-8004 Registry"}
end
subgraph Agent["SpreadHunter Core"]
direction TB
PE["🔍 Price Engine<br/>(On-chain reads)"]
Calc["🧮 Calculator<br/>(Deterministic math)"]
RE["🧠 Reasoning Engine<br/>(AI Analysis)"]
Exec["⚙️ Executor<br/>(Calldata Builder)"]
end
DEX -. "slot0 data" .-> PE
PE ==> Calc
Calc ==>|"Profitable Spread"| RE
RE ==>|"Natural Language Trace"| Exec
Exec -. "Execution & Feedback" .-> ERC8004
%% Styling
classDef blockchain fill:#1e293b,stroke:#475569,stroke-width:2px,color:#f8fafc,rx:8px
classDef logic fill:#2563eb,stroke:#1e40af,stroke-width:2px,color:#fff,rx:6px
classDef ai fill:#d946ef,stroke:#a21caf,stroke-width:2px,color:#fff,rx:6px
classDef action fill:#059669,stroke:#047857,stroke-width:2px,color:#fff,rx:6px
class DEX,ERC8004 blockchain
class PE,Calc logic
class RE ai
class Exec action
style Arc fill:#020617,stroke:#334155,stroke-width:2px,color:#cbd5e1,stroke-dasharray: 5 5
style Agent fill:#0f172a,stroke:#3b82f6,stroke-width:2px,color:#bfdbfe
SpreadHunter is designed for maximum abstraction, allowing users to deploy an AI agent without dealing with private keys or complex bridging protocols. We utilize Circle Web3 Services (W3S) and Arc Agent Standards to achieve this.
To operate autonomously, the agent requires its own keys. Instead of forcing users to manage private keys, SpreadHunter leverages Circle Developer-Controlled Wallets (WaaS).
During the initial setup, the backend generates a secure Wallet Set that automatically creates:
- The Owner Wallet: A multi-chain wallet (Arc Testnet, Base Sepolia, ETH Sepolia, Arbitrum Sepolia) sharing the exact same address. This acts as the Agent's main portfolio.
- The Validator Wallet: A single-chain wallet on Arc Testnet responsible solely for signing and verifying the Agent's reputation feedback.
sequenceDiagram
participant User
participant App as SpreadHunter UI
participant Backend as SpreadHunter Backend
participant W3S as Circle W3S API
User->>App: Launch Application
App->>Backend: Initialize Agent Setup
Backend->>W3S: Authenticate (API Key & RSA Ciphertext)
W3S-->>Backend: Authentication Success
Backend->>W3S: createWallets(ARC, BASE, ETH, ARB)
W3S-->>Backend: Return Multi-Chain Owner Wallet
Backend->>W3S: createWallets(ARC)
W3S-->>Backend: Return Arc Validator Wallet
Backend-->>App: Agent Identity Secured
App-->>User: Display Agent Portfolio Dashboard
Funding an agent on a specific L2/AppChain can be a high-friction process for users. SpreadHunter abstracts this away entirely using the Circle App Kit and CCTP.
Users simply transfer USDC to the Agent's address on their preferred network (e.g., Ethereum Sepolia). Our backend detects these funds and utilizes the Circle App Kit SDK to automatically bridge the USDC directly into the Agent's active portfolio on Arc Testnet.
flowchart TD
User["👤 User (Any Wallet)"]
W3SOwner["🏦 Agent's W3S Wallet<br/>(Sepolia, Base, Arb)"]
AppKit["⚙️ SpreadHunter Backend<br/>(Circle App Kit SDK)"]
CCTP["🌉 Circle CCTP Protocol"]
ArcAgent["📈 Agent Portfolio<br/>(Arc Testnet)"]
User -- "1. Standard USDC Transfer" --> W3SOwner
AppKit -- "2. Detects Balance & Triggers Bridge" --> W3SOwner
W3SOwner -- "3. Initiates Cross-Chain Transfer" --> CCTP
CCTP -- "4. Burns Source & Mints on Arc" --> ArcAgent
ArcAgent -- "5. Funds Available for Trading" --> Trade["SpreadHunter Execution Engine"]
style User fill:#1e293b,stroke:#475569,stroke-width:2px,color:#fff
style W3SOwner fill:#059669,stroke:#047857,stroke-width:2px,color:#fff
style AppKit fill:#2563eb,stroke:#1e40af,stroke-width:2px,color:#fff
style CCTP fill:#6366F1,stroke:#4338ca,stroke-width:2px,color:#fff
style ArcAgent fill:#059669,stroke:#047857,stroke-width:2px,color:#fff
style Trade fill:#f59e0b,stroke:#d97706,stroke-width:2px,color:#fff
- Price Scanning: Reads
slot0from V3 liquidity pools deterministically (no oracle). - Spread Calculation: Computes raw spread, deducts estimated fees, and flags profitable arbitrage opportunities.
- AI Reasoning: The Reasoning Engine calls an advanced LLM to generate a trader-like analysis of the opportunity.
- Execution: The Executor builds calldata and submits the transaction.
- Reputation Anchoring: After the trade, the
AgentRegistrysubmits agiveFeedbackcall to the Arc Testnet ERC-8004 Identity Registry, anchoring the keccak256 hash of the LLM reasoning on-chain to build verifiable trust.
SpreadHunter/
├── backend/
│ ├── src/
│ │ ├── config.js # Environment & static configuration
│ │ ├── walletManager.js # W3S WaaS generation & Circle CCTP Auto-Bridging
│ │ ├── priceEngine.js # On-chain reads via ethers.js
│ │ ├── calculator.js # Deterministic spread math
│ │ ├── reasoningEngine.js # AI analysis integration
│ │ ├── executor.js # DEX Swap execution
│ │ ├── agentRegistry.js # ERC-8004 identity & reputation
│ │ └── index.js # Express API + WebSocket Broadcaster
│ ├── config.json # Persistent agent state & network configs
│ └── package.json
├── frontend/
│ └── src/
│ ├── App.jsx # React dashboard & WebSocket client
│ └── components/ # UI Elements (Stats, Modal, Setup Wizard)
└── README.md
SpreadHunter is fully modular. To add a new DEX, add an entry to backend/config.json:
{
"name": "NewDex",
"enabled": true,
"type": "UniswapV3",
"contracts": {
"factory": "0x...",
"router": "0x..."
},
"routerType": "SwapRouter02"
}No code changes are required. The DEX is automatically picked up on the next restart.
- Node.js 22+
- npm or pnpm
# Install backend dependencies
cd backend && npm install
# Install frontend dependencies
cd ../frontend && npm installCopy the example environment file and add your keys:
cp backend/.env.example backend/.env| Variable | Description |
|---|---|
ARC_RPC_URL |
Arc Testnet RPC endpoint |
LLM_API_KEY |
API key for the LLM provider (Anthropic) |
CIRCLE_API_KEY |
Circle Developer API Key for WaaS |
CIRCLE_ENTITY_SECRET |
32-byte hex Entity Secret for W3S authentication |
# Terminal 1 — Backend
cd backend && npm run dev
# Terminal 2 — Frontend
cd frontend && npm run devOpen http://localhost:5173 in your browser. The Setup Wizard will guide you through creating your W3S Developer-Controlled Wallets and registering your Agent's ERC-8004 identity on Arc Testnet automatically.
| Layer | Technology |
|---|---|
| Agent Wallets | Circle Web3 Services (Developer-Controlled Wallets) |
| Auto-Bridging | Circle App Kit + CCTP Protocol |
| Agent Identity | ERC-8004 (Arc Identity + Reputation Registry) |
| Blockchain interactions | ethers.js v6 (RPC reads/writes) |
| AI Reasoning | Advanced LLM (Anthropic) |
| Backend | Node.js + Express + WebSocket |
| Frontend | React 19 + Vite 8 |
| Network | Arc Testnet (ChainID: 5042002) |