cREAL Stable Asset (formerly cBRL)

As the Brasil market for digital assets and adoption to new technologies rise, the country is becoming the leader in adoption on blockchain technologies.

At the same time, brasilians living abroad still send remittances to the country in the traditional way.
What if we could open a corridor of remittances using the Celo reserve?

This proposes to add a new stable asset “cBRL” that is pegged to the BRL currency. I think it contributes with the Celo mission if we can give the possibility of send currency abroad making cheaper, instant and using only a mobile phone.

Let me know what you think!

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UPDATE:

Herein lies a draft plan of implementation:

  • GCP to deployv core Stable Token and make the reserve support it
  • GCP for oracle activation to report implicit CELOBRL and initial funding
  • approval of GCPs
  • deploy stable token to aflajores.
  • implement fixes to the oracle so that new pairs are listed
  • deploy oracle that reports CELOBRL implicit pricing in alfajores (clabs azure k8s cluster??)
  • implement all related updates needed accross the different tools to add support for the new core stable asset (celocli, migrations, etc)
  • deploy core stable asset on testnets?
    TBC…
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I think this is a wonderful idea. Please, make it happen.

With a stable asset to BRL, we can create all sorts of interesting things, like offering cheaper loans to Brazilians, etc.

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This idea would open so many possibilities for us Brazilians. Please, do it!

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Hello all,
I also definitely believe that Brazil can be a major player in blockchain adoption, given the smartphone presence in the overall population. Also, the possibility of making remittances easier and cheaper (as @luisgj mentioned) also sounds very promising.

What for me is not entirely clear is how the cBRL could be exchanged for other tokens/fiat. Is it correct to assume that a user would have to exchange cBRL → Celo and then sell it on a different exchange (for example Binance) in order to obtain USD? Or are there other ways to exchange CELO for fiat directly (apart from gift cards available on Valora)?

Can help provide assistance based on the governance process with cEUR.

Also I believe @CodyBorn had been toying with an idea to make cBRL with his Validator team?

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Love this proposal. Brazil is diverse, prosperous, creative… And SO ready for this. Remittances is excellent use case - for individuals mainly but why not international commerce? Payments is something very interesting too: Brazil has digital infra and an upcoming legislation that will allow payment processors to do remittances (this used to be exclusive to banking institutions/forex). Another cool application is the “tokenization” of companies’ balances for DEFI purposes. Looking forward to see local community and companies embracing a possible cBRL!!!

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Thanks for opening the discussion, @luisgj.

Your draft plan looks good :slight_smile: Here’s Celo’s docs version with some helpful pointers: Adding Stable Tokens - Celo Docs

IMHO we should have some CELO/BRL liquidity, otherwise we’d be relying entirely on implicit pairs (cross rates).

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Alternative to CELO/BRL liquidity can be USD*/cBRL liquidity that can come into play after cBRL is introduced. This would be similar to USDT/cEUR liquidity that exists on KuCoin: https://trade.kucoin.com/CEUR-USDT

Getting CELO/BRL liquidity seems like much more difficult thing to achieve vs getting USDT/cXXX liquidity for most currencies other than cUSD itself.

@thezviad , I guess with cBRL/CELO at least provides an off ramp via CELO , whereas there isn’t a good off ramp with cBRL or cUSD (unless I’m mistaken).

Are there any fiat/cXXX pairs on exchanges? More importantly, on exchanges that are accessible in Brazil?

@thezviad But if we were to use */cBRL, what would link the cBRL to a real BRL (pun intended)?

@Pinotio.com There are a couple fiat/cUSD pairs listed (coinmarketcap), but I’m not sure how accessible these exchanges are in Brazil.

Yeah @pedro-clabs , I would think a key question is how you get to real BRL? - as you say above.

What exchanges are there in Brazil and what cryptos do they support for cashing out? I suppose you work backwards then to figure out what cBRL pair makes sense?

Obviously cBRL<>cUSD makes sense - not for cash out reasons but for conversion and then usage within the CELO ecosystem (although getting merchants to accept cBRL will be tricky at the start).

Say if there is cBRL / USDT pair on a CEX, we will have 2 alternate paths to go from cBRL <-> BRL

#1: cBRL ← (on CEX) → USD* ← (on CEX or on FX platform) → BRL
#2: cBRL ← (on Mento) → CELO ← (on CEX) → USD* <–> BRL

Having two separate paths increases liquidity and should keep peg more stable within 5 minute time periods.

Expecting to get deep liquidity on BRL/CELO pair seems pretty unlikely, since price will be volatile and it is too high risk for not enough reward for market makers.

On the other hand, cBRL / USD* pair would be more like FX pair with pretty small volatility overall so not a lot of risk for market makers to maintain decent liquidity depths. And there already is already a lot of liquidity for USD/BRL on FX markets so it is possible to hook up all those to go from cBRL → USD* → BRL with decent liquidity depth.

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#2: cBRL ← (on Mento) → CELO ← (on CEX) → USD* <–> BRL

That’s what we’ve been calling implicit pairs – we have a BRL price for CELO even though there’s no direct pair.

#1: cBRL ← (on CEX) → USD* ← (on CEX or on FX platform) → BRL

I’m not sure I understand this one, as Mento is not involved in the arbitrage. In my understanding it means that the arbitrage trade would not drive the expansion/contraction of cBRL supply.

On the other hand, cBRL / USD* pair would be more like FX pair with pretty small volatility overall so not a lot of risk for market makers to maintain decent liquidity depths. And there already is already a lot of liquidity for USD/BRL on FX markets so it is possible to hook up all those to go from cBRL → USD* → BRL with decent liquidity depth.

Having a cBRL/***/BRL path might help to maintain a smaller spread between them, but I don’t think we could rely exclusively on that for a stable coin. As it is, Mento needs a price for CELO in BRL.

Love seeing all the community support for this. I believe you’re already chatting with @pedro-clabs who can help line up CGPs and the contracts needed to support this. We’re really happy to help out in any way we can.

While this is gearing up for a “soft launch” we would also appreciate any help from the community in getting their local exchanges to list a “CELO/BRL” trading pair to be able to turn on the price oracles and to enable conversion to/from fiat.

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Lovecrypto App is working on creating a cUSD<>BRL ramp. We could potentially provide de cBRL<>BRL ramp as well.

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In which exchange would you like to see it listed?

Binance and FTX are widely used in Brazil.

Also, exchages which are from Brazil are: Mercado Bitcoin, Foxbit, FlowBTC, etc…

@edlovecrypto If you know folks at Binance, FTX, Mercado, those might be very ideal to get listed on for a CELO/BRL pair to try to get reliable higher volume price feeds from.

Hey guys. I’m a recent immigrant to Brazil and use BRZ quite frequently to get in and out of crypto. The business I’m part of, EasyCrypto.com, also uses BRZ to deliver crypto to our clients. Would be nice to see some more crypto BRL competition. I’m impressed by what I see of Celo so far, using Valora and the like. I think there’s far more opportunities to be explored than simply remittances.

I recommend using biscoint dot io to look at BRL prices - I think the best way to get CELO into BRL is still going through BTC.

I don’t know the ins and outs of setting up a stablecoin but I imagine, as Brazil is a quite bureacratic country, it’s not easy. I recommend partnering with either BRZ or another stablecoin provider.

I’m new to this forum and might miss replies so if anyone wants to hit me up outside of here I’m @jamesscaur on telegram.