Untangled: Infrastructure for real world lending on Celo


This proposal aims to extend support to Untangled RWA lending pools on Celo by allocating the CELO-equivalent of $200,000 as a grant from the Celo Community Fund (CCF) for protocol maintenance and the establishment of a legal structure and monitoring dashboard for Real World Assets (RWA) lending on Celo.


Having successfully deployed the Untangled protocol on the Celo mainnet, we have built a robust pipeline of institutional-grade real-world lending pools to the Celo ecosystem.

All these pools are rigorously vetted and co-invested by an UK-based, FCA-regulated institutional asset manager.

Our primary objective is to offer RWA yield opportunities to the Community Fund and other investors within the ecosystem. As the initial step, we prioritize establishing a solid foundation for launching and maintaining RWA lending pools within the Celo ecosystem.

Areas of focus

We are seeking a $200,000 worth of CELO grant from the Celo Community Fund (CCF) for the following purposes:

  • $75,000 will be allocated to a one-year maintenance of the protocol on Celo.
  • $50,000 will be designated for setting up a legal structure that will enable the CCF to lend to Untangled pools and similar real-world lending projects.
  • $75,000 will be used for setting up a framework for on-chain monitoring of real world lending exposures
Proposal budget $200,000
Hours per day 8
Hourly rate $100
Tasks Engineering days Total costs
Maintenance $75,000
Cross chain communication
Receiver/Sender contract development and deployment 5 $4,000
Integrate contracts to business logics 5 $4,000
Cross chain messaging use case (i.e. no token transfer) 5 $4,000
Cross chain token transfer (mint/burn, lock/burn) use case 5 $4,000
FE modifications 5 $4,000
BE and subgraph modifications 5 $4,000
USDC/cUSD swap (embed Squidrouter) 5 $4,000
cUSD/Fiat bridge (working with Mento) 5 $4,000
Audit of cross chain communication code $15,000
Security incidents/improvements of the protocol 15 $12,000
Bug bounty costs $16,000
Legal Contribution to legal expenses: $50,000
Legal structure comparisons $10,000
Legal entiry set up $10,000
Independent director fee - first year $10,000
Audit - first year $10,000
Legal opinion on CCF’s enforcement claim $10,000
Reporting asset tracking $75,000
Data stream from originators
API build and test for initial data upload 2 $1,600
API build and test for on data update 3 $2,400
Implement independent validation flow 10 $8,000
Credit modelling
Borrowing and lending data from subgraphs 18.75 $15,000
Data preparating and feature engineering 5 $4,000
Modelling PD for address on Celo and xchain 20 $16,000
Reporting and tracking dashboard
Update subgraph, API 5 $4,000
Set up automatic tracking of covernants, collateral performance 10 $8,000
Design and build dashboard for Untangled pool on Celo 20 $16,000

Success Criteria

  • The protocol has been successfully deployed on the Celo mainnet, including all relevant contracts. A comprehensive audit has been conducted before the mainnet deployment, and an audit report is available here.
  • We will provide a budget for ongoing protocol maintenance.
  • Completion of the legal structuring exercise, including appropriate jurisdiction and legal structure.
  • Framework for a robust on-chain monitoring and reporting system, including a dashboard facilitating timely remedial actions in the event of a credit event.


Milestone 1: For fund withdrawal, we will comment on the forum post, indicating the amount of CELO tokens swapped for $200,000 USD. We will also set out a final budget for ongoing protocol maintenance.

Milestone 2: Regarding the legal structuring, once completed, the legal structure will be made available in a forum post, including legal entities and documentation.

Milestone 3: A forum post on the RWA credit monitoring framework and a dashboard will be provided (see attachment for details).

Known Risks

Credit/Counterparty Risk: This is the risk that counterparties of underlying credit exposures may fail to repay the lending pool. We mitigate this risk through various means:

  • Many upcoming pools on Celo are co-invested by funds managed by the above-mentioned regulated asset manager, which has thoroughly vetted the asset originators with a strong repayment track record.
  • Untangled Finance, the developer of the Untangled protocol, is actively developing machine learning-based credit models that predict the probability of defaults and expected losses based on both portfolio and non-portfolio data.
  • RWA credit on-chain monitoring is being built as mentioned above.

Legal/Regulatory Risk: Ensuring clarity, transparency, and familiarity for investors in the legal construct is crucial, from the legal relationship of the investor to the structuring of off-chain legal entities. This aspect will be addressed through the legal structuring exercise.

Smart Contract Risks: The latest deployment has undergone an audit by Verilog. You can find the audit report here.



To facilitate the withdrawal of $200,000 worth of CELO. Any unutilized CELO for the legal structuring workstream will be returned to the community fund.


A multisig wallet hosted on Safe will be employed to manage and deploy the funds, requiring a 2 of 3 signature threshold. The multisig wallet is at 0xE35A476Ac46c34C15d90C6b2efd3FAFAFB815BeB and can be found here. The signers for this multisig are:

  • Manrui Tang (Untangled)
  • Isha Vashney (Celo community member)
  • TBA


This post has been updated for detailed budget.