Uniswap V3 (Celo)

Celo is an open-source, EVM-compatible multi-asset layer-1 cryptographic protocol that was designed for decentralized social payments. The platform features a speedy and lightweight client for mobile devices with the capability of cryptocurrency payments. The Celo protocol implements address-based encryption, allowing members of the ecosystem to send payments using a mobile phone number or an email address as a public key.

The process is fulfilled in combination with a reserve-backed stabilization Mento protocol that prevents volatility thanks to elastic supply rules. It improves user experience during cryptocurrency payments. Besides, these actions go in line with the concept of monetary ecology that corresponds to the core values of the facility.

The ultimate goal of Celo is to promote awareness of regenerative economics. Also, it aims to encourage protocols and investors to join the ReFi movement and become active participants in global voluntary carbon markets.

Celo background

The platform was launched precisely on the Earth Day, April 22nd, 2020. At the time of writing, the number of projects supported by the ecosystem has already surpassed 1,000. The list includes versatile projects from different technical teams located throughout the world. All these projects continue to grow under the umbrella of Celo.

The Celo platform can boast an extensive ecosystem of partners including different companies the world over that develop web3 apps within DeFi, ReFi, and NFT systems on Celo to support the mission of the community. The joint efforts of the companies help to create a more inclusive global financial system. As stated earlier, any person with a phone can get access to the ecosystem, which includes DeFi, PoS blockchain technology stack or Celo Protocol, as well as Mento Protocol stable assets (cREAL, cEUR, cUSD) that help users spend cryptocurrencies like fiats on a daily basis.

The platform undertakes a range of efforts to strengthen the web3 ReFi ecosystem by offsetting carbonic gas emissions with Layer 1 transactions. At the time of writing, the platform has already managed to offset more than 3,000 tons of CO2 in total. In addition, the facility has launched green asset liquidity pools with natural capital-backed assets to implement the initiative based on the core principles of Celo. The assets include tokenized carbon credits such as MCO2, NCT, GNT, etc.

The team standing behind the platform tries to improve its capital efficiency and make it available to 6 billion mobile phone holders. Additionally, Celo tries to improve the decentralized governance of the platform and discovers ways for upcoming climate action use cases on the Uniswap platform.

What is Uniswap?

Uniswap is an open-source decentralized AMM (Auto Market Maker) protocol launched in 2018 by Hayden Adams, a former mechanical engineer at Siemens. The popularity of the platform is explained by the fact that it allows traders to swap tokens without intermediaries.

Since its launch, the Ethereum-based platform has grown to become the largest DEX in the world covering a huge network of DeFi Apps. The native asset of the platform is a governance token UNI that is used for voting on key protocol changes. This is a global and permissionless facility with no borders or restrictions for participants.

The benefits of the protocol include deep liquidity, almost instant settlement of transactions, and smooth integration with other protocols. Previously, the platform completed integrations with several popular blockchain projects such as Polygon, Arbitrum, and Optimism. Uniswap V3 was designed as a capital-efficient platform with concentrated liquidity, allowing users to onboard more natural capital assets.

What is Climate Collective?

The platform cooperates with the Climate Collective which was launched in October 2021 and presents a coalition of companies and organizations, building Web3 products with a focus on climate change. The mission of the coalition is to accelerate regenerative applications with the assistance of Celo’s carbon-negative blockchain and its unique infrastructure designed to employ mobile phones in its work. In this way, Celo opens decentralized finance to over 6 billion users of mobile devices. The organization attempts to accelerate innovative technology via grants, technical advisory, education for the members of the community, and member partnerships. The Climate Collective works to promote ReFi with its further adoption to address the problems related to climate.

Uniswap and Celo integration

After its successful cooperation with the Climate Collective, the team of Celo decided to start its integration with Uniswap via seeding its assets across several pools. In particular, it began with the Moss carbon credit token pool CELO/MCO2 and CELO/wETH. The latter pair is used for bridging EVM-compatible chains to buy MCO2 and other ReFi assets that are added to Celo’s blockchain.

The Celo Foundation also promises to provide 10 million USD on DeFi products and services promoting ReFi initiatives. In addition, the platform encourages the adoption of the pools on Uniswap V3.

The integration of two popular platforms was conducted within the first phase of #ReFiSummer, the movement that promotes a regenerative economy, and rejects the principles of the extractive economy. At this, their partnership helps to expand mobile-first ReFi.