Credence Finance is a lending protocol for assets whose market closes: tokenized stocks and tokenized Treasury funds.

The problem

Stock tokens trade all week, but their price feeds don't. Chainlink's equity feeds stop from Friday 8 p.m. to Sunday 8 p.m. ET and hold the last price. Lending protocols built for ETH, including Aave's new Equities Hub (live 25 Sep 2026), keep liquidations open on that frozen price. Lenders carry the Friday-to-Monday gap without being paid for it, and when Monday opens lower every under-water loan is liquidated in the same block, in a race for the thinnest liquidity of the week.

How Credence works

1. Asset Clock. It tracks each asset's market state (open, extended hours, closed, halted, reopening, corporate action). Every rule depends on it, and every input fails closed.

2. Bell Check. Before every close, each loan must be at a safe LTV for that closure. The safe LTV is computed on chain from 3,000 historical close-to-open gaps rescaled to today's volatility. The cure options are repay, add collateral, or buy cover.

3. Gap Cover and Underwriter Pool. A first-loss pool sells one-closure insurance on the reopen gap and is paid premiums, risk fees and penalties. The pool's book is capped by a 256-weekend joint stress test. Auto-cover is the default.

4. Reopen Batch Auction. Under-water loans clear in one sealed-bid (commit-reveal) uniform-price auction per asset at the open, so speed and Timeboost priority are worth nothing.

5. Settlement Adapter. Treasury-fund collateral is sold to solvers who pay cash now and wait out the redemption.

Why Arbitrum Stylus

All risk math (scenario pricing, pool capacity, auction clearing) runs in a Rust Risk Engine on Stylus, where compute is 10–100× cheaper than the EVM. The engine holds no funds. The same integer code runs natively off-chain, and a differential harness checks the two builds against each other (8 functions × 10,000 random cases, 0 mismatches). Only the Solidity money contracts move tokens.

Results (2016–2026 data, out of sample from 2018)

- The safe-LTV rule was breached in 7 of 16,651 closures (0.042%) against a 0.1% target.

- To give the same weekend guarantee with one fixed limit, NVDA's max LTV would have to drop from 75% to 66%. Credence gives up 0.54% of weekend borrowing capacity on average.

- In the backtest, a $2M underwriter pool earned 13.9% a year with zero senior-lender losses.

Live on testnet

- App: https://credence-finance-swart.vercel.app

- Robinhood Chain testnet (46630): 7 equity markets.

-Market : 0xe58B9870401A4dB8dc340AF8c4A85c12142f62Bf

-Risk Engine : 0xe5b94BF0e2C7Bb6ae0FC72ce1Fd42E07e84241C0

- Arbitrum Sepolia (421614): TBILL Treasury-fund market 0x22e66634001A266f279bC78816Df40229750d499

Documents

Whitepaper: https://drive.google.com/file/d/11pPfjj0SRdXTjJYiOQB5g05quHSs9NbY/view

Go-To-Market plan: https://drive.google.com/file/d/1fqCyZ9vwlkjeE29I7qXHC56vJ92MAXfU/view

Code: https://github.com/anindhabiswas25/credence-finance

X: https://x.com/credencefi