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A decentralized exchange specifically designed around Arc's MEV classification. Beneficial back-running (cross-venue USDC/EURC arbitrage) is allowed and incentivized. Sandwich attacks are structurally blocked via batch auction settlement, all swaps in a block clear at a single uniform price. Uses Arc's fast finality to run batch windows of ~500ms. Demonstrates Arc's "constructive MEV only" philosophy in a live product.

Imagine you’re at a currency exchange market where people are swapping 

 many crypto exchanges, there are bots that watch transactions before they happen and try to make money by exploiting traders. One common trick is called a 

	2.	A bot sees your order before it’s finalized.

	3.	The bot buys first, pushing the price up.

	4.	Your trade executes at a worse price.

	5.	The bot immediately sells and keeps the profit.

Carapace is a decentralized exchange built to prevent these harmful behaviors.

Instead of processing trades one by one, it groups all trades arriving within a very short period (about half a second) and processes them together.

	•	Bots can’t jump ahead of your trade.

	•	Bots can’t sandwich your transaction.

That activity improves market efficiency and liquidity.

Carapace allows and even rewards this kind of helpful activity while blocking harmful attacks.

Because blocks finalize quickly, Carapace can operate with extremely short batch windows: 

Users experience something close to instant swaps while still receiving the protection benefits of batch auctions.

Instead of fighting all profit-seeking behavior, the protocol redesigns market structure so that:

	•	Arbitrage that improves efficiency survives.

	•	Sandwich attacks and user extraction cannot occur.

That’s why Carapace is described as a live demonstration of Arc’s 

CARAPACE

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