Adding CGP-0132 Stabila proposal

CGPs/cgp-0132.md

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+---
+cgp: 132
+title: Proposal for Funding Stabila - Driving Stablecoin Adoption on Celo
+date-created: 2024-04-26
+author: "Kevin Tharayil (@KevinTharayil)"
+status: PROPOSED
+discussions-to: https://forum.celo.org/t/final-proposal-for-funding-stabila-driving-stablecoin-adoption-on-celo/7810
+governance-proposal-id: 
+date-executed:
+---
+
+## Overview of Stabila Proposal
+
+_Stabila Foundation will be set-up if and once this proposal passes_
+
+Dear Celo Community,
+
+We are excited to present a proposal for funding Stabila Foundation, a new entity dedicated to accelerating the adoption of stablecoins on the Celo blockchain. Stabila's mission is to not only drive adoption metrics but also to foster education, awareness, and ecosystem growth, particularly in emerging markets such as Africa, Latin America and South East Asia.
+
+# Introduction
+
+Stablecoins play an important role in [providing stability to crypto markets](https://blockworks.co/news/2024-stablecoins-crypto-volatility), enabling real world use cases in line with Celo’s mission of prosperity for all. Today the market value of stablecoins is in excess of [$150bn](https://defillama.com/stablecoins/chains). As market sentiments improve, this is likely to grow. The Celo blockchain has undergone much development and established a strong foundation, over the last few years to make it the place to launch stablecoins for real world use around the world. Beyond a mission led and dedicated ecosystem focused on real world use cases, Celo’s technical features such as sub-cent transaction fees, native gas currency for ERC-20 tokens, and a mobile-friendly infrastructure provide strong reasons for stablecoin issuers to consider Celo for launching their stablecoins. With the recent successful launches of native USDT, native USDC, and innovative stablecoin players consisting of Mento, Angle, Glo and more, there is a thriving ecosystem of stablecoins on Celo. Driving adoption of these stable assets will help accelerate Celo’s mission.
+
+Stabila seeks funding of 5 million CELO over a period of 12 months to execute a strategic roadmap aimed at advancing stablecoin adoption on Celo. Our approach encompasses a blend of short-term rewards programs and long-term integration efforts, all designed to achieve our overarching goal: to increase adoption and active use of these stablecoins on Celo throughout the ecosystem. The increased adoption and activity will provide stability to the platform which in return will help create a positive feedback loop for everyday people using the platform and for delivering on real world use cases such as payments, remittances, microtransactions etc. that Celo blockchain is well positioned for.
+
+# Objectives
+
+**Stablecoin Adoption Acceleration**
+
+Stabila will spearhead initiatives to drive adoption of stablecoins on Celo, targeting diverse user segments including individuals, merchants, developers, and enterprises. The focus will be on facilitating easy onboarding processes, providing user-friendly interfaces, and offering incentives to encourage stablecoin usage.
+
+An example of activities in this category would be to partner with ecosystem projects that provide merchant tooling to accept stablecoins on Celo and provide temporary rewards to merchants to promote usage of stablecoins (on Celo) for payments received.
+
+**Educational Outreach and Awareness and Emerging Market Activation**
+
+Recognizing the importance of education in fostering adoption, Stabila will work with global and local partners to develop comprehensive educational campaigns, tailored to different user demographics and cultural contexts, to raise awareness about stablecoins, Celo blockchain's capabilities, and the benefits of decentralized finance (DeFi).
+
+Believing in the transformative potential of stablecoins for emerging markets, Stabila will implement targeted initiatives to activate stablecoin usage in regions where access to stable financial infrastructure is limited, with a special focus on Africa and Latin America. These efforts will include partnerships with local communities, educational programs, and tailored solutions to address specific market needs in collaboration with local partners and subject matter experts.
+
+**Infrastructure and Integration**
+
+Seamless integration of stablecoins into critical infrastructure components is essential for widespread adoption. Stabila will collaborate closely with key ecosystem partners to ensure that stablecoins are seamlessly integrated by on/off ramp providers, wallets, institutional partners, centralized and decentralized exchanges, and merchant services. The aim is to provide users and merchants with easy access to stablecoins and to enable frictionless transactions.
+
+**Liquidity Support for New Currency Stables**
+
+Diversity and innovation are essential for the long-term sustainability of the stablecoin ecosystem. Stabila will support liquidity provision mechanisms for new currency stables, fostering a diverse and resilient ecosystem on Celo, enabling it to thrive in the face of changing market conditions.
+
+An example of a new stable being proposed is [cCOP](https://forum.celo.org/t/draft-ccop-initial-liquidity-and-marketing-plan/7457). As for liquidity support, Uniswap and Curve pools, including providing multiple FX pairs like cEUR/USDC, cBRL/USDT as well as cross-USD pools (e.g. tripool USDT/USDC/cUSD).
+
+**This proposal includes two separate programs for driving stablecoin adoption.**
+
+**Stabila Reward Program**
+
+A short term rewards program over a 6 months period to reward on-chain participants and merchant partners. These rewards will be tied to specific KPIs for eligible partners. A maximum of up to **40% of the budget** request is to be used for this program. The budget allocation will be adapted based on market conditions.
+
+* Implementation of on-chain rewards programs for liquidity providers, stakers, and active users to encourage stablecoin usage, active participation through staking and governance participation. This will help provide the necessary stability and resilience to the network needed to help drive real world use cases on the Celo blockchain. 
+
+* Development of merchant rewards programs to support adoption of stablecoins for everyday use and payments, including discounts, cashback rewards, and others.
+
+**Stabila Partner Program**
+
+A strategic program focusing on partnership with key infrastructure providers. The program will enable Stabila to align with partners on long term value creation for the Celo ecosystem. Any grants or rewards would be tied to reaching milestones and meeting KPIs over a period of 12 months, but with an eye towards a longer time frame of up to 3 years. The program is expected to use **60% of the budget **request for this purpose. 
+
+* Integration of stablecoins into wallet and ramp solutions to streamline access for users, including easy fiat-to-stablecoin on/off-ramps.
+
+* Merchant integration initiatives to enable stablecoin payments for goods and services on a global scale, including partnerships with e-commerce platforms, payment processors, and point-of-sale solutions.
+
+* Strategic partnerships with centralized exchanges and other financial intermediaries to facilitate global and in-market stablecoin integrations, usage and adoption, including educational and marketing campaigns, as needed 
+
+* Provision of support and resources to enhance liquidity for new currency stables, including new liquidity pools, and liquidity bootstrapping events.
+
+**Expected Outlay for funding the Programs**
+
+
+|                  | Q2 2024  | Q3 2024  | Q4 2024  | Q1 2025 |
+| ---------------- | -------- | -------- | ------- | -------- |
+| Rewards Program  | 5%       | 10%      | 15%     | 10%      |
+| Partners Program | 10%      | 25%      | 15%     | 10%      |
+
+
+Overall the capital allocation approach is tied to the quality of proposals and the potential partnership opportunities that bring value to the Celo ecosystem. In the initial quarter i.e. Q2, 2024 it is anticipated that more time will be spent mapping potential partnerships and using time to set up the corporate structure for the new entity and establish review, funding, and decision-making processes. Some of the preliminary work related to this has already begun but we will be pursuing this with more focus should this proposal pass. In Q3 and Q4 2024, the expectation would be that the bulk of program funding allocation would occur as long as the quality of proposals received are in line with the mission of this proposed program.  At that time also, there would be more advanced discussions with potential partners related to this program. Depending on the partnership opportunities we could see a potential spillover to following quarters.
+
+# Expected Outcomes
+
+**Celo becoming the leading chain for stablecoin activity**
+
+Through this Program, the goal is to help new development and design of stablecoins to be used for real world use in everyday lives. With an increase in adoption on a strong Celo infrastructure, the increase in use of these stablecoins would also reflect in the transaction volume of stablecoins on the Celo blockchain, which would create a more vibrant and robust ecosystem. The goal is to help Celo become one of the top 5 EVMs by stablecoin activity.  \
+
+**Educational Outreach and Awareness and Emerging Market Activation**
+
+Stabila will support educational campaigns and outreach initiatives which will result in heightened awareness and adoption of stablecoins and Celo blockchain contributing to a more educated and engaged user base.** **Our targeted initiatives in emerging markets will support stablecoin usage, driving financial inclusion in regions where access to stable financial infrastructure is limited or nonexistent. This is expected to overlap with the markets that are strong for key non-custodial wallet providers such as Minipay and Valora.
+
+**Enhanced Infrastructure and Accessibility**
+
+Seamless integration of stablecoins into critical infrastructure components will enhance usability and accessibility for users and merchants alike, making it easier than ever to transact with stablecoins on Celo.
+
+**Diverse and Resilient Stablecoin Ecosystem**
+
+By supporting liquidity provision for new currency stables, we will foster diversity and innovation within the stablecoin ecosystem on Celo, ensuring its long-term sustainability and resilience.
+
+# Overview of Technical features 
+
+**Sub-cent transaction fees**
+
+Celo offers extremely [low transaction fees](https://celoscan.io/gastracker). This affordability makes the Celo blockchain particularly appealing for payments, microtransactions, cross-border remittances, and other use cases where transaction costs are a critical factor.
+
+**Gas abstraction (paying for fees in stablecoins)**
+
+Celo uses [gas abstraction](https://docs.celo.org/protocol/transaction/erc20-transaction-fees), enabling users to pay for transactions fees using any ERC-20 token natively deployed on Celo. This abstraction simplifies the user experience by allowing transaction fees to be paid in stablecoins. This mechanism enhances usability and reduces friction for users, especially those who are new to digital assets.
+
+**Mobile-friendly infrastructure**
+
+Celo is designed with a mobile-first approach. [SocialConnect](https://github.com/celo-org/Social-Connect), an open protocol on Celo, enables key identifiers such as phone number and social network IDs to map to on-chain addresses simplifying the onboarding process and makes it easier for individuals to participate in the Celo ecosystem. SocialConnect is being used by mobile apps like MiniPay and Valora, which leverage social connections to enable seamless payments and financial interactions among users.
+
+# Multi-Sigs & Advisors
+
+The committee will consist of known Celo contributors. They will not be taking any compensation in any form from the Stabila Foundation – both advisors and individuals on the multisig. All funds will be distributed according to the mandate of the entity. The funds will be withdrawn once the Stabila Foundation is formed.
+
+The goal of the multisig is to move to 3 of 5 once the proposal passes and the Stabila Foundation can be formed. The Stabila group will provide multisig updates or changes as part of its quarterly updates.
+
+Multisigs at the time of proposal submission:
+
+Safe Wallet Address: 0x9C257bDC314dc516e673728D70F45444F6e22412
+
+* Kevin Tharayil 0x3489A2Fe2924275c6A4b05508C77802f272d6D00
+* Mathieu Chanson 0x1f5979355411dF24c5Ce21Df5bD9f2fff418c194
+* Martin Volpe 0x978727D0b401B66Cf3891AaF9a40826765469bA2
+
+Advisors will provide feedback, guidance and expertise on stablecoin related topics.. They will help tap into their networks to connect with relevant services providers and partners to support the Stabila Foundation’s goals.
+
+Advisors:
+
+* Alex Witt
+* Amit Chu
+* Tomer Bariach
+* Nikhil Raghuveera 
+
+# Conclusion
+
+Funding Stabila represents a strategic commitment to the growth and adoption of stablecoins on Celo. With a comprehensive roadmap, committed contributors to the Celo ecosystem and a shared commitment to the Celo community, Stabila will be able to meaningfully drive impact and achieve long term sustainability for Celo and its mission aligned ecosystem partners old and new.
+
+Thank you for considering this proposal.
+
+
+## Proposed Changes
+Unique Transaction: 5M Celo tokens approval to Multisign ```0x9C257bDC314dc516e673728D70F45444F6e22412```
+  - Destination: ```0x471EcE3750Da237f93B8E339c536989b8978a438```
+  - Data: ```increaseAllowance``` & ```0x9C257bDC314dc516e673728D70F45444F6e22412```
+  - Value: ```5000000000000000000000000 Celo```
+
+
+### Json Script
+```
+[
+    {
+      "contract": "GoldToken",
+      "address": "0x471EcE3750Da237f93B8E339c536989b8978a438",
+      "function": "increaseAllowance",
+      "args": [
+        "0x9C257bDC314dc516e673728D70F45444F6e22412",
+        "5000000000000000000000000"
+      ],
+      "value": "0"
+    }
+]
+```
+
+## Verification
+Before approving/voting: Fetch the on-chain proposal and verify that the multisig address and approval amount match the approval call submitted to chain:
+
+celocli governance:show --proposalID TBD --node https://forno.celo.org
+
+Verify the on-chain proposal that
+
+- The Destination address of the Approval is the GoldToken Proxy `0x471EcE3750Da237f93B8E339c536989b8978a438`
+- The approved Spender is the Multisign `0x9C257bDC314dc516e673728D70F45444F6e22412`
+- The ammount of Approval is `5 Million Celo` expresed in WEI `5000000000000000000000000 or 5e24`
+
+## Risks
+This proposal does not deploy or upgrade contracts or change network parameters so represent minimal risk to the network.
+
+Risk of whitdrawing funds from Community Fund are mitigated because funds are only gonna be witdrawed when the new entity is setted up.
+
+
+## Useful Links
+- https://forum.celo.org/t/final-proposal-for-funding-stabila-driving-stablecoin-adoption-on-celo/7810
+- https://forum.celo.org/t/draft-ccop-initial-liquidity-and-marketing-plan/7457
+- https://docs.celo.org/protocol/transaction/erc20-transaction-fees
+- https://github.com/celo-org/Social-Connect
+- https://blockworks.co/news/2024-stablecoins-crypto-volatility
+- https://defillama.com/stablecoins/chains

CGPs/cgp-0132/mainnet.json

@@ -0,0 +1,12 @@
+[
+    {
+      "contract": "GoldToken",
+      "address": "0x471EcE3750Da237f93B8E339c536989b8978a438",
+      "function": "increaseAllowance",
+      "args": [
+        "0x9C257bDC314dc516e673728D70F45444F6e22412",
+        "5000000000000000000000000"
+      ],
+      "value": "0"
+    }
+]