Announcing the Launch of cCOP - Celo Colombia Peso Decentralized Stablecoin on the Mento Platform
October 31 2024
by Victoria Calmon
Celo Colombia DAO, with the support of Mento Labs and the local community, is excited to announce the launch of cCOP, a decentralized local currency stablecoin for Colombia on the Celo blockchain.
Why Colombia and Why cCOP?
cCOP is a decentralized stablecoin pegged to the Colombian Peso (COP), built on the Mento Platform. The name cCOP offers Colombian users a familiar and trusted financial tool that can be seamlessly integrated into their daily lives. With the introduction of cCOP, the community aims to make cryptocurrency more accessible and relevant for everyday financial transactions in Colombia, allowing users to easily adopt decentralized finance (DeFi) with the ease of use of their local currency.
The launch of cCOP not only reflects a direct connection to the Colombian Peso, but also symbolizes the community’s commitment to empowering Colombian users and fueling economic growth through decentralized technology.
Community-Led and Decentralized
Governed by Celo Colombia DAO, cCOP embodies a community-led vision similar to other decentralized stablecoins on Mento including cUSD, cEUR, and cREAL. It will operate through smart contracts with no single entity controlling its supply, ensuring decentralization, transparency, and resilience.
The community’s objective is to provide a reliable, stable alternative for Colombian users who want to adopt DeFi solutions without the complexities of foreign currencies. With cCOP, businesses and individuals will have access to a familiar digital currency for smooth financial transactions, fostering broader economic growth in Colombia.
Colombia’s Growing Crypto Landscape
Colombia ranks 15th globally in cryptocurrency adoption, and is among the top 5 in Latin America. With over $70 billion in monthly crypto transactions and more than 600 outlets in the country accepting cryptocurrencies, Colombia is an active hub in the crypto ecosystem.
Remittances also play a significant role in the local economy, with inflows reaching $9.4 billion in 2022. cCOP can provide an efficient, low-cost solution for remittances and other financial services, further driving adoption in the country.
Previously, Colombia’s crypto market has lacked a stable, Peso-pegged stablecoin, and previous attempts have failed, eroding trust in the ecosystem. As a decentralized, transparent alternative, cCOP has the potential to restore confidence and provide a trustworthy local currency stablecoin for everyday use.
Mento Labs Involvement
Mento Labs will provide the technical infrastructure needed to develop and launch the cCOP stablecoin on the Mento Platform.
Celo Colombia DAO will handle the governance and promote community engagement, ensuring that cCOP meets the needs of Colombian users. Together, the community aims to enhance stability, trust, and utility within Colombia’s evolving crypto ecosystem.
Mento Labs has extensive experience in building infrastructure to launch decentralized stablecoins for other local currencies, such as PUSO, cKES, cREAL, eXOF, cEUR, and cUSD. The infrastructure developed for cCOP will leverage Mento’s proven framework, ensuring a secure and scalable platform for Colombia’s first Peso-pegged decentralized stablecoin.
Notably, all Mento stablecoins, including cCOP, can be used to pay for gas fees on the Celo blockchain, making transactions more seamless for users. The Mento Asset Exchange allows users to trade cCOP and other Mento or non-Mento stablecoins (e.g., USDT and USDC) at respective FX rates. It operates as a virtual AMM (Automated Market Maker), with the Mento Reserve acting as a liquidity provider.
Key features of the Mento Asset Exchange for cCOP include:
Liquidity for cCOP does not need to be pre-provided; it is minted or burned during swaps.
This mechanism ensures efficient trading, allowing slippage and throughput to be optimized without relying on external liquidity providers.
A range of safety mechanisms, such as on-chain circuit breakers and trading limits, can be configured for each trading pair, enhancing security. More details can be found in the Mento documentation.
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