As with every deployment of CarbonDeFi, the Arb Fast Lane framework will be deployed as well.
Fees will be used in the same way they are in the Ethereum and SEI deployments.
Summary
CELO is a Mobile-first, EVM compatible and Carbon negative blockchain.
We have already seen CarbonDeFi’s performance on inexpensive fast chains is impressive.
The Credit Collective is very interested in this CarbonDeFi deployment
The Credit Collective will work to ensure there is deep liquidity on CarbonDeFi
As with every deployment of CarbonDeFi, the Arb Fast Lane framework will be deployed as well.
Fees generated by the deployment will be used exactly the same as fees generated by the Ethereum Deployment
Upon launch, fees will be held in the vortex until a bridging solution is decided upon in a future proposal and then can be sent to the CarbonDeFi Vortex on Mainnet.
This proposal suggests setting the taker fee at 20 basis points
This is a parameter that can be adjusted by the DAO.
20 BPs is being proposed as many of the tokens expected are likely to be less volatile than on the SEI deployment:
Upon deployment, this proposal does not suggest any custom fee for stable to stable trades. While the author of this proposal would like to have something similar to what was done on mainnet (link), it might make more sense to see which stables people are interested in using and then creating the special fee tier.
I am in support of this proposal. One of the focuses of the Celo blockchain is that of decentralized payments. Decentralized payments required having stablecoin liquidity on the blockchain to make it easy for users to transact.
Founders see stablecoin adoption and the Celo blockchain’s push as advantageous, particularly for native protocols. Key advantages include USDT & USDC as gas fees, a market of local stablecoins (KSH, PHP, etc.), and a growing number of users from emerging markets.
Celo has decent USD stablecoin liquidity but it is also increasingly targeting liquidity for non USD stablecoins (KSH, PHP, etc…) as well.
As an onchain orderbook like protocol, Carbon DeFi can help with the needs of the Celo community when it comes to creating efficient markets for stablecoins. One of the key benefits that Carbon DeFi can provide is that of makers (AKA liquidity providers) being able to create limit/range orders for converting from one stablecoin to another at their preferred exchange rate. This capability is built directly into the protocol without any reliance on third party infrastructure such as keepers or oracles. The other functionality that Carbon DeFi has is that of range orders where the effective rate is the geometric mean of the lower and upper bounds if the order is filled 100%. Range orders are quite useful as it allows you to distribute funding (e.g. stablecoins or any other standard token) across two price points such that you can slowly sell as the price is rising or slowly buy if the price is decreasing.
In addition, these two types of orders can be linked together to create a recurring strategy (AKA buy-low-sell-high) with the maker (AKA LP) having full control around the spread (AKA fees) that they are going to be charging. This recurring strategy provide automation capabilities to users as it will trade forever unless stopped. Having these trading tools available for the Celo community will prove to be quite powerful when it comes to creating efficient onchain financial markets.
Bancor would also be deploying the Arb Fast Lane as it is a prerequisite for Carbon DeFi. The Arb Fast Lane is an open framework for onchain arbitrage and it incorporates onchain liquidity sources in order to support timely execution of Carbon DeFi orders. This open arbitrage framework allows anyone to run a python based bot to close onchain arbitrage opportunities and at the same time maintain price parity across onchain liquidity sources. Essentially, it democratizes access to onchain arbitrage.
For the above reasons, I am excited to see a deployment of Carbon DeFi on Celo.
