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

Governance Governance Proposals
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We really like this proposal and appreciate the strategic thinking behind using MEV and arbitrage to strengthen Celo’s FX layer. There’s clearly a lot of untapped potential in connecting DEX/DEX and DEX/CEX markets, and it makes a lot of sense to align incentives between validators, LPs, and searchers :gear::chart_increasing:

That said, the proposal is asking for a significant amount of funding, and as we all know, the Community Fund isn’t in the best position right now to support very large requests :money_bag:. Maybe there’s a chance to explore a combined strategy with the Stabila Season 1 proposal, since both are focused on building core DeFi infrastructure :link:

We also had a couple of questions:

  1. The proposal mentions eight $200K pools for long-tail stablecoins. Could you clarify which stablecoins are included in that list? :speech_balloon:

  2. While we support COPM as part of the broader Celo ecosystem and value the work they’re doing, we believe it’s important to focus more on cCOP. cCOP is part of the Mento protocol, it’s already being used in adoption campaigns in Colombia :colombia:, and it aligns directly with Celo’s long-term vision for public goods and regenerative finance :seedling:. We’d really love to see cCOP prioritized more clearly in this proposal.

One last thought: has Credit Collective considered contributing to on/off-ramp infrastructure? That’s still a big challenge in emerging markets :globe_showing_europe_africa: and could go hand in hand with the FX and arbitrage work you’re doing.

Thanks again for putting this together. It’s exciting to see more long-term thinking around real world usage on Celo :rocket:

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