Proposal: Add wCELO as a collateral asset on Cream

Summary

This is a proposal to list wCELO (“Wrapped Celo”) on Cream. Wrapped Celo is a 1:1 representation of Celo on Ethereum (like WBTC for BTC) issued by a qualified custodian (Anchorage Digital Bank)

For

List wCELO (wrapped Celo) as collateral asset starting with 0% collateral factor.

Against

Do nothing.

Celo: the L1

Celo is a mobile-first blockchain that’s EVM compatible. It has implemented a number of important technological innovations. You can find out more about Celo on their Website or on Github.

Motivation: wCELO on Cream

The Celo DeFi ecosystem is gaining momentum. We think that this will translate into a strong demand for derivatives in the asset over the next year or so.

Adopting wCELO would be a net positive for everyone. On one hand, it will grow the utility of the token and its value-proposition on Ethereum. On the other, it will be excellent for Cream as it will make it the de facto goto place to borrow/lend the asset. This also allow us (Wrapped) to introduce ourselves to the Cream community and start a relationship to integrate more assets in the future.

wCELO: Celo on Ethereum

wCELO (“Wrapped Celo”) is an asset backed token representing a Celo deposited in an Anchorage vault. The tokens are a 1:1 representation of Celo on Ethereum.

The Custodian: Anchorage

Anchorage is a reputable and qualified custodian. In fact, it is the first and only federally chartered digital bank in the United States. You can find out more about Anchorage by checking out this article

wCELO specification

wCELO is an ERC-1404 token. The ERC-1404 standard augments ERC-20 tokens to make them compatible with asset issuance, whether they are securities or asset-backed tokens. In practice this means that, just like USDT, USDC, or WBTC, the issuer (Anchorage) has the power to restrict an address from transferring the asset. This is a potential risk to the protocol.

wCELO on-chain

Both contracts (Proxy and Logic) are verified on Etherscan:

Contract (Proxy): Wrapped: wCELO Token | 0xe452e6ea2ddeb012e20db73bf5d3863a3ac8d77a
Logic: TokenSoftTokenV2 | 0x7aac67b8cb7f39e080672ca6a32f5a6a964c26a4
Github: Repository

A liquid market for wCELO:

The Uniswap: wCELO/wETH has about three million dollars ($3M) in liquidity available.

Summary:

Wrapped.com assets: There are 1:1 asset-backed tokens issued by a qualified custodian (Anchorage)
wCELO: A 1:1 representation of Celo on Ethereum
Token standard: ERC-1404 (ERC-20 for asset-backed tokens)
Token address: 0xe452e6ea2ddeb012e20db73bf5d3863a3ac8d77a