Hello @Pinotio.com and thank you for your concern, I interpret this as caring for the future of Celo. As you’ve made several points, I’m responding in segments below each quoted segment.
" One interpretation of the intent for Granda Mento is to facilitate large transfers of fiat-USD into cUSD format by bootstrapping the liquidity that is there to go from fiat-USD to CELO. A participant can buy CELO using fiat-USD at market rates, and then Granda Mento honours converting that CELO into cUSD at the same rate as was done from fiat-USD to CELO."
-This is currently being worked on and is definitely an important use case to tap on CELO liquidity for current and future stablecoins.
" * This scenario is much more tricky for Granda Mento to help with because there fundamentally isn’t large liquidity for Celo <> cUSD. This makes it impossible to determine at price at which to allow a large trade that would be fair for the Celo community. Strictly speaking, there is no market clearing price that exists for a single transaction of 1,000,000 CELO today. [This speaks to the points made above on the difficulty of establishing a fair price.]"
- Correct, if there were a liquid market for clearing 1m CELO, the need for Granda Mento would be significantly lessened.
- In terms of price discovery, as mentioned in the comments above, we could “hog up” xy=k liquidity and continually exchange CELO into cUSD/cEUR instead and liquidate 1m CELO with relatively little slippage if done over say 1 week.
" * The documentation on Granda Mento is unclear in its stated goals, and I would recommend that this be clarified in a future governance proposal to be voted on by the community."
-We did have a community call to discuss goals, although I agree documentation should be improved.
" * I am sympathetic with the challenge of converting CELO into cUSD in large amounts, but I don’t think it is in the best interests of the CELO community to facilitate this via Granda Mento."
-The exchanged CELO will be used for stablecoin grant distribution, all with the intention of contributing to the Celo Ecosystem and Community.
-(Alex deleted inaccurate statement) If the community rejects a Granda Mento proposal, I agree it’s not in the community’s interest and should be rejected.