$cUSD – A stable coin that lives on the Celo Blockchain

1/ Have you ever sent some $cUSD from your @ValoraApp to a friend? How did it feel?

If not, it’s time for you to learn more about @CeloOrg and $cUSD

A thread 👇

2/ $cUSD is a stable coin that lives on the Celo Blockchain.

The value of $cUSD is secured through the collateralization of $CELO – the native currency of the Celo Blockchain – and other crypto assets.

3/ The principle of $cUSD is similar to $DAI which represents stabilized USD through overcollateralization of volatile crypto assets (mostly $ETH) via the Maker Protocol.

4/ The amount of $cUSD in circulation has grown from a little less than 20 million USD at the beginning of 2021 to more than 90 million USD today:

5/ @ValoraApp is the preferred option to store your $cUSD

While designed initially for the Celo Ecosystem, the Valora wallet operates as a separate, standalone company.

It is backed by @a16z among other VCs and has the objective to onboard even more users into DeFi

6/ @Moola_Market – a money markets protocols targeted at $cUSD and its Euro equivalent $cEUR – offers interest rates for staking your $cUSD

They are currently around 2.9% for $cUSD – however, the fees are significantly lower than say for example on Ethereum.

7/ $cUSD for now is mostly used for remittances 

However, the DeFi use cases are expanding which lets us assume that the amount of $cUSD in circulation will continue to grow

8/ Eventually, let’s put things in perspective and compare the size of $cUSD to $DAI (both stable coins follow a similar approach):

$cUSD: 92 mn$ (Celo Ecosystem)

$DAI: 6.5 bn$ (Ethereum Ecosystem)Naturally $cUSD is much smaller since it is serving a smaller ecosystem