Celo Euro

Halal Rating :
Questionable
Last Price $1.06 Last updated:
Rank 1395
1D Change -0.07 %
Market Cap $4.68m
Circulating supply 4,428,759
Maximum supply None

Crypto Overview

Categories
  • Stablecoin
  • Algorithmic Stablecoin
  • EUR Stablecoin

Overview and Intended Utility

Celo Euro (CEUR) is a Euro-pegged stablecoin that operates on the Celo blockchain network. It is designed to maintain a stable value of 1:1 with the Euro through an algorithmic stability mechanism and over-collateralization with a diverse basket of cryptocurrencies, including CELO, BTC, and ETH.

The primary intended utility of CEUR is to serve as a stable medium of exchange and store of value, particularly focused on enabling mobile-first financial solutions in regions where access to traditional banking services is limited. The token is part of the broader Celo ecosystem, which aims to create an accessible financial system that creates the conditions for prosperity for everyone.

Actual Utility Assessment

CEUR demonstrates real-world adoption through its integration with various DeFi protocols on the Celo network. The stablecoin is actively used in cross-border payments, remittances, and as a stable trading pair on decentralized exchanges. The Celo platform shows consistent development activity, with regular updates and improvements to the protocol.

Founder and Token Distribution Analysis

The Celo Foundation, which oversees CEUR, maintains a transparent governance structure with clear token distribution metrics. The stability mechanism is managed through smart contracts, reducing the risk of manipulation by founders. The project demonstrates strong focus on technical development rather than marketing hype.

Technology and Revenue Model

The stabilization mechanism relies on over-collateralization rather than interest-bearing instruments. The protocol uses algorithmic methods and arbitrage opportunities to maintain the peg, avoiding riba-based mechanisms.

Crypto Impact

To assign a comfort level investing in Celo Euro from a halal perspective we need to determine whether it has a net positive or negative impact.

Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Celo Euro.

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Justification for our Halal Rating