Learnings from cREAL
Specific remarks are perhaps best placed in the [cREAL forum discussion (cREAL Stable Asset (formerly cBRL)).
It’s early still, but the outstanding amount of cREAL is tiny (~$100 worth) compared to cUSD ($100M) and cEUR ($50M). I find that surprising and worth questioning:
- Is it that we just don’t have many Brazilian community members? (there were a few active in the forum)
- Is it a lack of a cEUR <> EUR ramp? (I would think not because I’m guessing cEUR had this issue too at the start)
- Is it the lack of integrations within Dapps? If so, why weren’t Dapps ready or don’t they see a need to prioritise cREAL? (This is not a criticism of Dapps on Celo - my guess is either they legitimately don’t see this as a priority OR were unaware of launch).
- Is it the lack of a pre-mint? I believe there was a pre-mint for cEUR, but the outstanding cEUR is quite a bit larger than the pre-mint. [To be clear, I’m not a fan of a pre-mint unless there is a strong reason to believe it has a non-linear positive kick-start effect on circulation/demand.]
- Is it that cREAL (and BRL in general) is a bad currency to hold because it’s not as stable as USD or EUR. Maybe people in Brazil would prefer to hold cEUR/cUSD than cREAL? [This might be totally wrong, but worth asking].
- Is it the lack of liquidity incentives? (btw, do any DeFi4All funds go to cBRL?)
- I’m still a bit puzzled why it is called cREAL and not cBRL when the forum seemed at best split, if not favouring cBRL. Maybe this is water under the bridge, but it would be good, for future cStables, to try and reach rough consensus on the forum.
- How do we measure the success of a cStable launch? Can we start to track metrics like velocity as well as just outstanding amount (I think we care about both)?
Financial inclusion lens for cStables
We’re trying to get financial inclusion here so one lens for choosing cStables is to do what’s best for inclusion. What is better for those with bad financial access? Is it giving access to digital versions of volatile local currencies OR is it giving access to digital versions of more stable currencies that countries with higher financial inclusion have (e.g. cUSD, cEUR)? It sounds a bit imperialist, but I think is a question worth asking.
Competitive advantage lens for cStables
Inflation is top of mind right now in global media, and there are few easy inflation hedges. One potential hedge - that is not easy to implement in practise - is to buy Swiss Francs (or perhaps, to a lesser degree, British pounds).
So, I’m wondering if there might be a strong demand for cCHF (a bit clunky), the Swiss Franc OR perhaps cGBP.
On a related note, in the medium term, I think we will want to have some kind of a cStable that is not a pure fiat. Perhaps it will be a CPI indexed stable, or perhaps something else. This would be a way to get away from issues of centralisation but a first step seems to get cStables on-boarded that have governments that tend to act independently (and generally conservatively with respect to inflation, i.e. Switzerland - although CHF of course has had some issues, such as rapid price de-pegging some years ago).
Is there a rough roadmap or at least order of priority that we are coordinating on for cStables in 2021? I think it would be good to get input on the forum and try to align on a coordinated roadmap.