> ## Documentation Index > Fetch the complete documentation index at: https://docs.arco.financial/llms.txt > Use this file to discover all available pages before exploring further. # Stablecoin Savings Mainnet product guide draft · English v1.1 · 14 October 2026 [Savings](/products/savings) · [ArcoUSD](/products/arcousd) · [Vault Liquidity Architecture](/liquidity/architecture) Stablecoin Savings is an Arco-managed cash-management vault. Holding ordinary arcoUSD does not earn interest for the holder. Users deposit arcoUSD into Savings and receive sarcoUSD to participate in the vault's net performance. Arco directly allocates the strategy across existing MMF exposure, crypto-backed lending and RWA-backed lending, while managing liquidity and capital recovery. The cash-management design maintains a **5–10% operating liquidity range** for Instant Redemption and aims to make the remaining allocated capital available within **T+1** through compatible asset recovery terms and portfolio scheduling. These are Stablecoin Savings operating policies, distinct from the separate ArcoUSD reserve policy and from an individual customer's payout conditions. ## Product overview | Item | Stablecoin Savings | | - | - | | Deposit | arcoUSD under the selected product's conditions | | Position | sarcoUSD, representing participation in the relevant Savings vault | | Allocation manager | Arco directly selects, allocates and rebalances the portfolio | | Investment exposure | Existing MMF exposure, crypto-backed loans and RWA-backed loans under the selected product's terms | | Valuation | The product's stated valuation unit, net assets, costs and obligations | | Return treatment | The selected product's price, reinvestment or distribution rules | | Redemption | arcoUSD; a subsequent ArcoUSD redemption pays the supported stablecoin | | Liquidity | 5–10% operating liquidity range; Standard recovery or an offered Instant internal or OTC route subject to available balances and execution | | Capital recovery | T+1 cash-management objective for the remaining allocation, subject to the actual recovery route and settlement terms | | Access and costs | Product-specific eligibility, minimums and fees; supplied in the applicable offering terms | ## Capital allocation and return flow Stablecoin Savings capital allocation and return flow The customer participation flow is **arcoUSD deposit → sarcoUSD issuance → Arco-directed allocation → net performance reflected in sarcoUSD → sarcoUSD redemption → arcoUSD receipt**. A subsequent withdrawal into a supported stablecoin uses the separate ArcoUSD redemption route. | Stage | What is confirmed | | - | - | | Savings deposit | Accepted arcoUSD, customer and quantity | | sarcoUSD allocation | The applicable valuation price, allocated shares and actual customer position | | Arco allocation | The assets and lending exposures selected by Arco, their settlement and attribution to the vault | | Performance reflection | Reconciled MMF income and loan interest, losses, expenses and obligations, with a dated sarcoUSD valuation | | Capital recovery | Assets actually available or returned through the selected recovery routes | | Savings payout | Share processing, the arcoUSD amount after applicable costs and verified customer receipt | | Optional stablecoin exit | A separate ArcoUSD redemption with its own quote, liquidity and payout record | The flow describes economic allocation and customer outcomes. Depositing arcoUSD does not itself confirm an external asset purchase, lending settlement or recovery. It does not create a second copy of the same cash or MMF assets. Reserve backing, Savings return attribution and any capital movements or obligations are reconciled without counting the same economic asset or income twice. ## Arco-directed portfolio Arco directly manages portfolio selection, capital allocation, exposure limits, liquidity monitoring, recovery and rebalancing. External funds, lending markets and borrowers perform their own roles under the product arrangements; this product does not use the Static Asset guide's handoff of the overall vault capital to an MM manager. | Portfolio component | Role and performance | Recovery considerations | | - | - | - | | Available liquidity | Cash or immediately executable payout balances support Instant routes; the 5–10% range is a liquidity policy, not an interest rate | Check the asset actually needed for payout, restrictions and amounts reserved for existing obligations | | MMF exposure | Existing MMF investments contribute the income attributable to Savings under the allocation and cost policy | Fund redemption cutoffs, business days, settlement and any approved liquidity route govern actual cash receipt | | Crypto-backed loans | Lending exposure earns loan interest where received or accrued under the valuation policy; crypto collateral supports the lending arrangement | Borrower repayment, market liquidity and collateral realization conditions affect recovery and loss exposure | | RWA-backed loans | Lending exposure is backed by the specified real-world assets and contributes loan interest under the valuation policy | Contractual return rights, borrower performance, collateral rights and settlement determine recoverability | The loan collateral is distinct from the customer's deposit and payout asset. A reference to crypto or RWA collateral does not establish a supported token, market, borrower or custody provider. Approved product terms identify the actual exposures, counterparties, costs and rights. Collateral support does not guarantee principal or create immediate cash liquidity. ### Instant liquidity and replenishment Arco's ongoing policy is to keep **5–10% of the Stablecoin Savings portfolio's net asset value** in the operating liquidity sleeve. The relevant measure is unrestricted value available for the offered payout route, after reserved payouts and existing obligations; MMF NAV, lent assets and unrealized receivables are not automatically available cash. Deposits, payouts, performance and asset settlements can change the observed ratio. Arco monitors the ratio and upcoming cash needs, adjusts new allocations and recovers assets to maintain or restore the range. Recovery in progress is tracked separately and is counted as available liquidity only after actual receipt and any required payout-asset settlement. The range supports ongoing Instant availability; it does not promise that a request of any size can always execute immediately. Each quote uses the actual available balance or executable OTC capacity, valid price, fees and limits. This 5–10% policy applies to **Stablecoin Savings**, not to the separately managed ArcoUSD stablecoin reserve, which remains described in the [ArcoUSD guide](/products/arcousd). ### T+1 cash-management objective Arco manages the remaining allocation with the objective of making capital available for Savings settlement within **T+1** of an accepted recovery request, T, under the relevant route's day-count and cutoff rules. Asset selection and portfolio scheduling must be supported by actual fund or loan recovery rights and sufficient liquidity, rather than by a displayed yield or collateral valuation alone. Underlying settlement schedules remain product-specific. For example, the supplied [RRDY product materials](/products/funds/digift-product-references#rrdy-product-materials) state **T+2 redemption**. A Savings T+1 objective does not change that fund term: any such exposure requires a compatible approved liquidity or scheduling arrangement to support the objective. It is not described as having intrinsic T+1 fund redemption. The operating policy identifies business days, cutoffs, recovery routes, restrictions and handling of delayed or unavailable liquidity. T+1 is a capital-recovery objective, not a blanket 24-hour guarantee or a guaranteed time for both Savings payout and a subsequent ArcoUSD stablecoin withdrawal. Standard requests follow actual recovery, valuation and settlement through to verified customer receipt. ## Deposits, holdings and redemptions Stablecoin Savings is designed for users to deposit arcoUSD and receive sarcoUSD. sarcoUSD is a product token representing the quantity held in the relevant Savings vault and participation in its performance. The payment and redemption functions of ordinary arcoUSD are separate from Savings exposure to returns and losses. | Stage | User flow | | - | - | | Participation | Deposit arcoUSD → issue and receive sarcoUSD at the applicable price | | Holding | Check holding value using the sarcoUSD quantity and valuation price | | Redemption | Process sarcoUSD → pay out arcoUSD according to the Savings specifications | | Stablecoin withdrawal | Exchange the arcoUSD received through an ArcoUSD redemption route | One unit of sarcoUSD is not always equal in value to one unit of arcoUSD. The Savings specifications govern how returns, losses and costs are reflected, the price unit, and redemption quotes. Where performance is reflected through price while token quantity remains unchanged, performance changes the holding's valuation rather than its token count. The step of receiving arcoUSD from Savings and the step of redeeming arcoUSD for USDC, USDT or RLUSD are described separately. Even if a combined withdrawal screen is provided, it shows each step's price, costs and liquidity conditions, together with the final amount received. ## Strategy, price and performance MMF income and interest from crypto-backed and RWA-backed loans contribute to the vault's performance according to their actual attribution and valuation rules. Returns, losses, expenses and outstanding obligations are reconciled before attributing net assets to holders. A fund's or lending market's reported rate is not automatically the sarcoUSD holder's net return. Where existing ArcoUSD reserve performance is connected to Savings, the allocation and cost policy identifies the performance attributable to this vault without counting the same return twice. **sarcoUSD price = net assets attributable to sarcoUSD holders ÷ sarcoUSD shares outstanding**, in the product's stated valuation unit. Loan interest already included in a position value is not added a second time; uncollectible claims, losses and costs affect that value under the valuation policy. Price-based performance changes the position's value rather than automatically paying interest to an ordinary arcoUSD wallet or increasing the sarcoUSD share count. Show the sarcoUSD valuation price and its reference time separately from observed performance and payout liquidity. A historical or estimated APR identifies the observation period, capital basis, included income and cost treatment. It is not a fixed rate or future payout commitment. See [NAV and Returns](/transparency/nav-and-returns). ## Liquidity, eligibility and risk Standard Redemption follows the selected strategy's recovery and settlement policy. Offered Instant routes use available internal liquidity or an executable OTC quote, with applicable fees and conditions. A request receipt, sarcoUSD burn or arcoUSD payment-ready state does not establish customer receipt. Savings payout into arcoUSD and subsequent stablecoin redemption are verified as separate outcomes. Dollar denomination does not guarantee principal, a fixed token price or uninterrupted redemption. Underlying asset, manager, counterparty, valuation, custody and liquidity conditions affect the product. Borrower default, collateral price changes or enforcement limitations can reduce loan recovery; available lending liquidity and fund settlement can delay cash receipt. Investor access, networks, costs, minimums and rights follow its offering terms. See [Terms and Risks](/security/terms-and-risks), [Security and Operations](/security/operations) and [Deposits and Redemptions](/liquidity/deposits-and-redemptions). ## Frequently asked questions ### How do arcoUSD and sarcoUSD differ? arcoUSD is a payment and redemption token under normal dollar exchange conditions. sarcoUSD provides exposure to stablecoin Savings performance. Its valuation price can change with returns, losses and costs. ### Does my sarcoUSD quantity increase when returns are generated? In a structure that reflects performance through price, the quantity stays unchanged while the valuation changes. For example, assume, excluding fees, that the valuation price of 1 sarcoUSD changes from 1.00 to 1.02 arcoUSD. The value of 1,000 sarcoUSD would then change from the equivalent of 1,000 to 1,020 arcoUSD. A price decrease would also reduce the valuation. This example does not state an actual return or payout amount. ### Can I withdraw directly from Savings into USDC? The core flow is sarcoUSD redemption → receipt of arcoUSD → redemption into a supported stablecoin. Even if a combined withdrawal screen is offered, check the price, costs and liquidity conditions for each step and the final amount received. ### How do I redeem if Instant is unavailable? Check the product's Standard route and recovery and payout schedule. The product guide governs strategy waiting or recovery restrictions and price finalization conditions. For a submitted request, check its progress in the transaction history first. ### Is the liquidity range an interest rate? It is the operating liquidity range for Stablecoin Savings, not a yield. MMF and lending performance, losses and costs determine the net value attributed to sarcoUSD. ### Does T+1 mean every withdrawal finishes within 24 hours? T+1 is the portfolio's capital-recovery objective under the applicable day-count and cutoff policy. Actual asset recovery, Savings payout into arcoUSD and any further stablecoin redemption are separate outcomes. Confirm the offered route's conditions and actual receipt. ### Who allocates the capital? Arco directly selects and rebalances the Stablecoin Savings exposures and manages recovery and liquidity. External funds and lending counterparties retain their own roles under the product arrangements. ## Related Savings products * [Crypto-native (Staking)](/products/savings/staking) * [Crypto-native (Static Asset)](/products/savings/static-asset) For background on how lending allocations and available withdrawal liquidity differ, see [Morpho's liquidity curation guide](https://docs.morpho.org/curate/concepts/liquidity/). This is a technical reference, not confirmation of a selected Arco lending integration or market. This documentation is built and hosted on [Mintlify](https://mintlify.com), a developer documentation platform.