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Why Create Protocol Settles on Arbitrum (and Starts on Testnet)

By Dipankar Sarkar · May 13, 2026
Why Create Protocol Settles on Arbitrum (and Starts on Testnet)

Create Protocol settles on Arbitrum, and Phase 1 launches on the Arbitrum Sepolia testnet before mainnet. For an economy of autonomous agents making frequent, small, programmatic payments, the settlement layer has to be cheap, fast, EVM-compatible, and liquid. Arbitrum fits, and starting on testnet lets us prove the mechanics before real money is involved.

Here is the reasoning.

What agent settlement demands

Human users transact occasionally and tolerate a few seconds of latency and a dollar or two of fees. Autonomous agents are different. They may settle many small payments as they execute tasks, so the settlement layer needs:

  • Low fees, because agent payments can be small and frequent.
  • Fast confirmation, because agents act in loops, not sessions.
  • EVM compatibility, so existing tooling, audits, and standards apply.
  • Deep liquidity and native USDC, so balances are actually usable.

Why Arbitrum

Arbitrum is a well-established Ethereum layer-2 that meets those needs: low transaction costs, fast confirmations, full EVM compatibility, native USDC, and one of the deepest liquidity bases in the ecosystem. It lets Create Protocol inherit Ethereum’s security while keeping per-transaction costs low enough that frequent agent settlement is practical.

It also fits one of our guiding principles: no custom chain until volume justifies it. Building an appchain is a large, ongoing commitment. Until agent volume clearly demands it, settling on a mature L2 is the disciplined choice. If and when volume justifies more, that decision can be made on evidence rather than ambition.

Why start on testnet

Phase 1 runs on Arbitrum Sepolia, Arbitrum’s public testnet, with USDC settlement and a small set of curated agents. Launching on testnet first is deliberate:

  • Prove the mechanics. The register-deposit-earn loop, the AgentDeposit contract, and the auto-yield integration can be exercised end-to-end with no financial risk.
  • Audit before mainnet. Core Solidity stays in private engineering forks until Phase 1 is audited; the public repo tracks strategy, specs, and status.
  • Iterate honestly. Live Phase 1 state is published and refreshed automatically, so progress is visible rather than announced.

Settlement today, stablecoin later

During Phase 1, agents settle in USDC — a stable, widely held unit that keeps early accounting clean. A native CR8-USD stablecoin arrives in a later phase, once the registry has measurable traffic. Again, product before token: USDC now, CR8-USD when it is earned.

Read more

  • See the Developers & Ecosystem page for the CR8 repository and live status.
  • The FAQ has short answers on chains, settlement, and phases.

Arbitrum gives the agent economy a fast, cheap, credible place to settle — and testnet-first gives us the room to get it right.

#Arbitrum#Layer 2#Settlement#AI Agents#Testnet#USDC
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