Celo is a blockchain protocol that aims at building an ecosystem for smartphone users (including those without a bank account), making financial tools accessible to anyone with a mobile phone and increasing cryptocurrency adoption. The platform’s utility token is Celo ($CELO) and it is a proof-of-stake (PoS) token which plays a key role in the consensus and governance processes on the Celo protocol. It is used for transaction fees, as well as for building decentralized applications and assets that move across chains, carriers, and countries.
Celo is one of the first carbon negative blockchains and is supported by leading investors, such as Coinbase and Polychain Capital. Opera, a privacy-oriented web browser that has a history of incorporating crypto features, has incorporated Celo’s stablecoins, $CEUR and $CUSD. Opera users can send peer-to-peer remittances, trade, or convert to Celo’s native asset or stablecoins from the browser’s wallet.
According to the cLabs team that is working on Celo, the Celo protocol sets incentives for users to adjust $CUSD supply to match $CUSD demand at the price target in order to balance $CUSD demand excess or shortage. When demand for the $CUSD rises and the market price is above the target, an arbitrage profit can be achieved by buying one US Dollar worth of $CELO on the market, exchanging it with the protocol for one $CUSD, and selling that $CUSD for the market price. Similarly, when demand for the $CUSD falls and the market price is below the target, an arbitrage profit can be achieved by purchasing $CUSD at the market price, exchanging it with the protocol for one US Dollar worth of $CELO, and selling the $CELO to the market.
For a deeper dive into the Celo ecosystem, check out this article written by our Marketing team. And please contact support@hextrust.com if you would like to learn more about opportunities with $CELO.