Dear all Celo Community
CeloColombia DAO, with the support of Mento Labs and the local community, is excited to propose the launch of $cCOP, a decentralized stablecoin for Colombia.
Why Colombia and Why $cCOP?
We propose $cCOP, a stablecoin pegged to the Colombian Peso (COP), built on the Mento Platform within the Celo blockchain.
The name $cCOP stands for “Colombian Peso” offering Colombians a familiar and trusted financial tool that seamlessly integrates into their daily lives.
By introducing $cCOP, we aim to make cryptocurrency more accessible and relevant for everyday transactions in Colombia, allowing users to participate in the crypto space while staying grounded in their local currency.
The launch of $cCOP not only reflects a direct connection to the Colombian Peso but also symbolizes our commitment to empowering the Colombian people and driving economic growth through decentralized technology.
Community-Led and Decentralized
$cCOP will be governed by CeloColombia DAO, embodying a community-led vision similar to other Mento stablecoins like cUSD, cEUR, and cREAL. Unlike fiat-backed or centrally controlled stablecoins, $cCOP will have no banking footprint or central custodian. It will operate through smart contracts with no single entity controlling its supply, ensuring decentralization, transparency, and resilience.
Our goal is to provide a reliable, stable alternative for Colombians who want to engage with the crypto world without the complexities of foreign currencies. With $cCOP, businesses and individuals will have a tool for smooth financial transactions, fostering broader economic growth in Colombia.
Colombia’s Growing Crypto Landscape
Colombia ranks 15th globally in cryptocurrency adoption, and is among the top 5 in Latin America. With over $70 billion in monthly crypto transactions and more than 600 outlets in the country accepting cryptocurrencies, Colombia is an active hub in the crypto ecosystem.
Remittances also play a significant role in the economy, with inflows reaching $9.4 billion in 2022. $cCOP can provide an efficient, low-cost solution for remittances and other financial services, further driving adoption in the country.
However, Colombia’s crypto market has lacked a stable, peso-pegged option, and previous attempts have failed, eroding trust in the ecosystem. $cCOP, as a decentralized, transparent alternative, has the potential to restore confidence and provide a trustworthy stablecoin for everyday use.
The Path Forward
We believe $cCOP can serve as a stable bridge between Colombia’s traditional financial system and the emerging world of decentralized finance. By tackling challenges like liquidity, adoption, and trust, $cCOP has the potential to become an essential tool for everyday transactions, remittances, and commerce.
Mento Labs Involvement
Mento Labs will provide the technical infrastructure needed to develop and launch the $cCOP stablecoin on the Mento Platform.
CeloColombia DAO will handle the governance and promote community engagement, ensuring that $cCOP meets the needs of the Colombian people. Together, we aim to enhance stability, trust, and utility within Colombia’s evolving crypto ecosystem.
Mento Labs has extensive experience in building decentralized stablecoins for other currencies, such as $PUSO, $cKES, $cREAL, $eXOF, $cEUR, and $cUSD. The infrastructure developed for $cCOP will leverage Mento’s proven framework, ensuring a secure and scalable platform for Colombia’s first peso-pegged decentralized stablecoin.
Notably, all Mento stablecoins, including $cCOP, can be used to pay for gas fees on the Celo blockchain, making transactions more seamless for users. The Mento Asset Exchange allows users to trade $cCOP and other Mento or non-Mento stablecoins (e.g., USDT and USDC) at respective FX rates. It operates as a virtual AMM (Automated Market Maker), with the Mento Reserve acting as a liquidity provider.
Key features of the Mento Asset Exchange for $cCOP include:
- Liquidity for $cCOP does not need to be pre-provided; it is minted or burned during swaps.
- This mechanism ensures efficient trading, allowing slippage and throughput to be optimized without relying on external liquidity providers.
A range of safety mechanisms, such as on-chain circuit breakers and trading limits, can be configured for each trading pair, enhancing security. More details can be found in the official Mento documentation.
Proposed Logo
We look forward to engaging with the community and discussing the next steps for $cCOP’s success.