Celo Reserve Liquidation Mechanism

Governance
16

Hi @Parwan,

really great questions - some first answers/thoughts:

  1. These assets are readily available (within a few minutes).
  2. Buying cStables on CEXs would be an option even though more decentralized avenues are to be preferred I believe. cUSD is, for example, listed against BTC and ETH on Bittrex and against BTC on Kucoin. Indirect reserve trading (e.g. DAI->USDT->cUSD) would also be an option.
  3. In the long-term (medium term actually), this will work via what we call “Giga Mento”, a USDC<->cUSD StableSwap setup that can be used for burning an minting cUSD against USDC 1:1 on chain (see Proposing a new way to enable large stables mint: Giga Mento for details). Ideally, USDC is natively deployed for this on Celo but bridges like Wormhole that are live can be used in the meantime. We are right now prioritizing the work on Giga Mento and plan to launch it soon (end of October is the current estimate, cc @martinvol )

I believe that cross-chain interoperability is the main hurdle to overcome as we aim for a fully decentralized and robust liquidation engine and @Tobi is taking the lead on this work at Mento right now.

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