Summary:
The Celo community is proposing to deploy Curve on the Celo Blockchain. This expansion to Celo will enable Curve to broaden its reach into a new DeFi ecosystem with $7M of additional incentives for Curve users.
Abstract:
Our proposal is to support the Curve community and expansion in a multi-chain world. Celo is a carbon negative mobile-first platform that makes financial dApps and crypto payments accessible to anyone with a mobile phone. Bringing Curve to Celo means enabling millions of people to gain access to more DeFi tools, and helps further Celo’s goal of bringing prosperity to all.
Through the $100M DeFi for the People initiative, the Celo Foundation will provide $7M of incentives in CELO tokens to bring sustainable liquidity to Curve. Stablecoins on Celo will be listed on Curve to provide opportunities for CRV holders to earn trading fees. Additionally, we propose that the Curve community also provides CRV tokens as incentives.
Celo features 2.6M addresses, up to 1.1M daily transaction, and has processed 102M total transactions. Current native stablecoins include cUSD, cEUR, and cREAL with plans to launch several more this year. These are in addition to bridged versions of DAI, USDC, and USDT using multiple bridge instances. DeFi TVL on Celo has reached as high as approximately $1.2B prior to recent market corrections. Additionally, Celo has been chosen by Kickstarter for its upcoming decentralized product (to date, Kickstarter has successfully supported over 214,000 projects with over $6B in funding and 20M backers) which will attract new users to the ecosystem.
Motivation:
Curve is building the multi-chain future of DeFi. The Celo ecosystem presents a strong partnership due to its global user base, native stablecoin assets, and EVM compatibility. Current multichain DeFi protocols on Celo include Sushi, 0x, Beefy and Pooltogether, which are joined by native protocols such as Moola Market, Ubeswap, and Mobius.
The Celo platform is fully EVM compatible with a few notable improvements:
- Celo has a fast and secure PoS consensus protocol that aggregates validator signatures using the SNARK-friendly BLS12-377 curve. This choice enables mobile friendly SNARK-based light clients such as Plumo, as well as SNARK proofs that can prove asset ownership off-chain.
- Gas can be paid with CELO or ERC20 tokens (that have been whitelisted through Celo’s on-chain governance). This would make it possible for Curve users to pay for transactions with stablecoins (e.g. cUSD or cEUR) enabling a great user experience for novice users.
- The CELO asset supports the ERC20 interface natively, which does away with the need for a wrapped counterpart like WCELO.
- The network includes a decentralized phone verification protocol that can be used by dApps for lightweight sybil resistance and to make it easier for wallets to use hashed phone numbers as identifiers in an interoperable manner. See this in action with Valora.
- The network includes a few stablecoins that have been whitelisted as a gas currency (cUSD, cEUR, and cREAL). These stablecoins are fully algorithmic, with a smart-contract based expansion and contraction platform (called Mento) that is backed by the Celo Reserve. Mento algorithmically adjusts the supply of stablecoins to user demand. The reserve is overcollateralized and currently consists of over $540M in holdings made up by 103.3M CELO, 3.3K BTC, 35.0K ETH, 15.4M DAI, and 83.3K cMCO2.
Specification:
cLabs will work with the Curve team to deploy all necessary smart contracts needed to start Curve pools and provide any additional tooling necessary to manage incentives for the Curve community, as well as work with third party vendors to perform smart contract audits. cLabs will also work to ensure that cross chain bridge options are available for swapping CRV tokens to and from Celo to networks where Curve is present. Celo is EVM compatible and so the deployment is expected to be completed with little to no alterations to the smart contracts.
References:
Celo homepage: https://celo.org/
DeFi for the People: https://www.defiforthepeople.org/
Documentation: https://docs.celo.org
Celo Whitepaper & Stability Protocol: https://celo.org/papers
Source code: https://github.com/celo-org
Metrics:
110 individual validators organized in 68 validator groups staking 315M CELO. All validator nodes are community run. The Celo Foundation does not operate and has never operated any nodes on the network.
Over 2,300 participants from 135 countries in the Make Crypto Mobile hackathon, 2.6M addresses, up to 1.1M daily transaction, and 102M total transactions
$541M reserve holdings backing Celo stablecoins: 3.3K BTC; 35.0K ETH; 15.4M DAI; 83.3K cMCO2
Community: Twitter (160K), Discord (16K)
For:
Curve will add new users from the Celo community and enable millions of people to gain access to DeFi tools through their mobile phone. This in turn will promote Celo’s goal of bringing DeFi to everyday people by driving more liquidity into the Celo ecosystem thereby making DeFi more accessible.
Against:
Not enough interest in the Curve community to deploy and maintain on Celo. Celo’s goal for making DeFi to people through mobile phones does not fit within Curve’s goals.
Authors:
