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cgp-0024.md

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cgp title date-created author status date-executed discussions-to governance-proposal-id
24
cEUR activation
2021-03-11
@martinvol, @pedro-clabs
EXECUTED
2021-04-23
26

Overview

This is the last proposal to unfreeze and fully activate cEUR. It is to be executed after CGP #22, CGP #23, CGP #25. If those CGPs were executed, CELO/EUR oracles are deployed and reporting. This proposal adds ExchangeEUR and StableTokenEUR to the reserve and enables cEUR as a gas currency.

Proposed Changes

  1. Unfreezing ExchangeEUR
  • Destination: Freezer.unfreeze
  • Data: ExchangeEUR (0xE383394B913d7302c49F794C7d3243c429d53D1d)
  • Value: 0
  1. Unfreezing StableTokenEUR
  • Destination: Freezer.unfreeze
  • Data: StableTokenEUR (0xD8763CBa276a3738E6DE85b4b3bF5FDed6D6cA73)
  • Value: 0
  1. Enable ExchangeEUR to pull money out of the reserve
  • Destination: Reserve.addExchangeSpender
  • Data: ExchangeEUR (0xE383394B913d7302c49F794C7d3243c429d53D1d)
  • Value: 0
  1. Adds StableTokenEUR as a token to be considered by the reserve
  • Destination: Reserve.addToken
  • Data: StableTokenEUR (0xD8763CBa276a3738E6DE85b4b3bF5FDed6D6cA73)
  • Value: 0
  1. Enables cEUR as a gas currency
  • Destination: FeeCurrencyWhitelist.addToken
  • Data: StableTokenEUR (0xD8763CBa276a3738E6DE85b4b3bF5FDed6D6cA73)
  • Value: 0

Verification

With the following CLI command

celocli governance:view --proposalID 26

Risks

  • cEUR price risk: due to the low initial reserveFraction parameter, the initial expansion and contraction potential of cEUR supply is low which could lead to slow adjustments of cEUR supply after cEUR demand shocks. The impact of this is that it could take longer for cEUR to regain the peg after an extensive cEUR demand shock compared to a setup with a large reserveFraction parameter (similar to CGP #7.
  • cEUR reserve swap risk: The ability to exchange cEUR against Reserve assets may lead to depletion of the Reserve if oracles are not reflecting market prices accurately. Appropriate trade bucket sizes according to available market liquidity limit the extent of this risk.

Useful Links