The LHeC is envisioned as a natural upgrade of the LHC that aims at delivering an electron beam for collisions with the existing hadronic beams. The current baseline design for the electron facility consists of a multipass superconducting energy-recovery linac (ERL) operating in a continuous wave mode. The unprecedently high energy of the multipass ERL combined with a stringent emittance dilution budget poses new challenges for the beam optics. Here, we investigate the performances of a novel arc architecture based on a flexible momentum compaction lattice that mitigates the effects of synchrotron radiation while containing the bunch lengthening. Extensive beam-dynamics investigations have been performed with PLACET2, a recently developed tracking code for recirculating machines. They include the first end-to-end tracking and a simulation of the machine operation with a continuous beam. This paper briefly describes the Conceptual Design Report lattice, with an emphasis on possible and proposed improvements that emerged from the beam-dynamics studies. The detector bypass section has been integrated in the lattice, and its design choices are presented here. The stable operation of the ERL with a current up to similar to 150 mA in the linacs has been validated in the presence of single- and multibunch wakefields, synchrotron radiation, and beam-beam effects.