Creating the Next FX Market: A Strategy to Attract Liquidity to Celo

Thanks for providing the links, I was not aware because this proposal itself did not contain any historical context unlike other similar proposals. It would have been good to include the context to make it easier for voters and delegates.

Now that I have established some context after reviewing the original proposal from 2 years ago, CGP 84, and the report from March 2025, I have several critical questions and concerns:

You mention $1.6M existing Credit Collective liquidity. Is this the same 1.6M cEUR original funding granted by the CCF in 2023 through CGP 84? If it is indeed the same funds, where did the EUR/USD conversion gains go? Given that FX rates have been consistently above parity since July 2023, 1.6M cEUR should represent a higher USD equivalent and that disparity seems to be unaccounted for.

Where have the gains realized from the credit deployments gone? There’s no clear accounting of interest income or profits generated from community-funded capital. Are the metrics and financial reports of these specific credit deployments public? The only dashboards available appears to track high-frequency trading bot activity, not actual credit performance.

If the current $1.6M is not the same as the original 1.6M cEUR grant, where are those original funds currently deployed, and what returns have they generated for the community?

Credit Collective appears to have pivoted away from your original mission of real-world credit and impact-driven products to becoming primarily a market maker focusing on high-frequency bot trading and arbitrage. What drove this fundamental shift in strategy? Do you plan on retaining the original funding (granted for the original credit mandate) and re purposing it for this new market-making focus should this vote pass?

This proposal exposes community funding to substantial impermanent loss (IL) across all proposed pools. Are there risk mitigation strategies in place? If so, why are they not detailed in this proposal? Why wasn’t IL mentioned in the risks section?

In the current proposal, you want the CCF to fund liquidity pools and R&D arbitrage bot infrastructure, then Credit Collective and others will run bots to generate profit from this infrastructure. Where does the profit generated by Credit Collective go? How does the community that funded this infrastructure capture value from its success?

In my opinion, there appears to be a fundamental misunderstanding of Celo’s mission. Celo aims to build prosperity for all through real economic activity, not to optimize for MEV extraction and high-frequency bot volume.

Looking at your proposed KPIs, could you explain how these metrics align with Celo’s Vision 2030 and overall mission of prosperity for all?

Regarding your multisig membership in both Stabila and Credit Collective proposals, combined with your long tenure in this community, raises concerning optics about the timing of this proposal. Both requests (with fundamentally the same objectives) together significantly exceed the $3M seasonal cap established for Ecosystem Growth. Is this an attempt to bypass established governance limits through coordinated but technically separate funding requests? The community deserves transparency about whether these initiatives are being coordinated to circumvent resource allocation constraints put in place for precisely this reason.

I believe these concerns require detailed responses before the community can make an informed decision about such a significant allocation of scarce resources.

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