Integrating Glo Dollar [USDGLO] to Increase $G Liquidity and Drive GoodDollar’s Mission

Governance Proposals
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Hello, I’m Lana, an active contributor and builder in the regenerative and public goods ecosystem. I’ve worked with Gitcoin, CharmVerse, Octant, GreenPill, Glo Dollar, and other impactful projects over the years. I’m writing as a contributor to Glo Dollar, on behalf of the Glo Dollar team.

We propose that GoodDollar integrates Glo Dollar (USDGLO) into its ecosystem to unlock sustainable funding and strengthen its mission of accessible, universal basic income. By using USDGLO for grants, collateral, and liquidity, GoodDollar can tap into a self-sustaining funding cycle that amplifies its impact and opens up GoodDollar ongoing grants to support growth and empower its community.

Glo Dollar is a 100% fiat-backed, US-regulated stablecoin that funds public goods at no cost to its holders, including Celo Public Goods. This partnership provides GoodDollar with a unique opportunity to access grant funding through Glo Dollar’s Liquidity Flywheel for Celo Publc Goods.

This proposal is intended to open a discussion and serve on a temp check on the following ideas:

We propose that GoodDollar integrates Glo Dollar (USDGLO) in all of these ways or a combination of some to unlock sustainable funding, drive liquidity, and amplify its mission of universal basic income:

  • Swap $23,281 USDC for USDGLO to signal community trust and support for public goods.
  • Encourage community liquidity in the $G/USDGLO pool to unlock continuous grant funding through Glo Dollar’s Liquidity Flywheel.
  • Use USDGLO as collateral for the $G token, alongside or instead of cDAI, to enhance $G’s stability.
  • Pay grants in USDGLO instead of cUSD to increase public goods funding without additional costs.

Key Benefits for the GoodDollar community

  • Ability to receive monthly grants from Glo Dollar
    • We distributed $2k USDGLO last month, with amounts set to grow as Glo Dollar’s liquidity on Celo increases. Longterm this could unlock a sustainable grant stream for GoodDollar.
  • Help drive liquidity into the $G/USDGLO pool, which helps generates sustainable liquidity for the $G token
  • This creates a cycle of impact and resources that benefits GoodDollar and its community both in the short and long term.

What is the Liquidity Flywheel?

Our goal is to increase Glo Dollar liquidity to boost funding for Celo Public Goods. Currently, the Glo Foundation donates $3.5–$4k per month, and as USDGLO liquidity grows, so do these donations. Here’s how it works: $1,500 goes to Celo Public Goods to be distributed via grants, while the remaining $2,000 is allocated directly to Celo Public Goods projects with tokens that have liquidity pools with Glo Dollar. Donations are split based on pool liquidity at month’s end. To qualify, projects must be recognized as Celo Public Goods and have a token that supports liquidity pools with Glo Dollar or another mechanism that actively utilizes Glo Dollars.

How Can GoodDollar Receive Monthly Grants from the Flywheel?

GoodDollar can qualify for Liquidity Flywheel grants by using Glo Dollar as collateral for $G or expanding the $G/USDGLO liquidity pool, among other options. This supports the flywheel effect, boosting liquidity and expanding funding for GoodDollar and other public goods initiatives.

Ways the GoodDollar community can access grants from Glo Dollar Flywheel

  1. Encourage Community Liquidity: Increased liquidity pools that are paired with $G is a net positive for the community. A larger $G/USDGLO liquidity pool unlocks more grant funding, leveraging community support to grow LPs and strengthen the GoodDollar ecosystem.

  2. Kickstart a Flywheel Effect: Integrating Glo Dollar across the GoodDollar ecosystem drives liquidity to the $G token, strengthening it as a UBI tool. Building $G/USDGLO liquidity unlocks additional grant funding through Glo Dollar’s Liquidity Flywheel, supporting $G’s stability and utility. This funding also expands GoodDollar’s ecosystem, fostering partnerships and tools that boost adoption and growth, creating a self-sustaining cycle aligned with GoodDollar’s mission to reduce wealth inequality and build a “trickle-up” basic income economy.

Other synergies GoodDollar can create to support Glo Dollar’s growth to support Public Goods Funding:

  1. Payout Contributor Grants is Glo Dollar over cUSD: By paying grants in Glo Dollar instead of cUSD, contributors still receive stablecoin payments, while GoodDollar unlocks additional funding for public goods at no cost. This aligns with GoodDollar’s mission of promoting accessible and impactful financial solutions.

  2. Swap USDC For Glo Dollar: GoodDollar currently holds $27,626 in stablecoins in their treasury, $4,345 cUSD and $23,281 USDC. We propose swapping the $23,281 USDC, into USDGLO. Swapping USDC for Glo Dollar enables GoodDollar to support public goods and leverage Glo Dollar’s profit yield to boost crypto ecosystem funding.

  3. Use USDGLO as Collateral: Currently, GoodDollar uses cDAI as collateral to stabilize the $G token price and is moving towards cUSD. Using Glo Dollar as the collateral token, either alone or alongside cUSD. This will increase in the amount of funding Glo Dollar has to donate monthly to funding public goods on Celo.

Mento’s $1M USDGLO Swap Sparks the Flywheel

Mento’s recent $1M swap into Glo Dollar shows how treasury diversification can fund public goods and accelerate ecosystem growth. It also highlights Glo Dollar’s role as a trusted collateral stablecoin, supporting the cUSD $1 peg.

Because Glo Dollar’s profits on Mento’s $1M holding are funneled to Celo Public Goods, Mento unlocks up to $40,000 annually for the Celo ecosystem, at zero cost to them. This upcoming month alone, Glo Dollar will be donating ~$4,000 to Celo Public Goods.

For Celo’s Retro Funding, a portion of our profits go to Celo’s PGF multisig, while the other portion supports public good projects on Celo, like GoodDollar, that increase Glo Dollar usage and funding for Celo PGF through a flywheel effect.

As more people in the Celo ecosystem adopt Glo Dollar over USDC and other stablecoins, funding for Celo Public Goods will increase.

GoodDollar can tap into this funding by:

  • Using Glo Dollar as $G collateral alongside or instead of cUSD
  • Driving liquidity into $G/USDGLO pools, benefiting the GoodDollar community
  • Paying out grants in Glo Dollar instead of cUSD
  • Swap $23,000 USDC into Glo Dollar to signal to their community that Glo Dollar is a trusted stablecoin

Where does the monthly grant money come from?

We say, “Glo Dollar funds public goods at no cost.” But if no one’s paying, where does the money come from?

The answer: Glo Dollar’s funds come from the yield on U.S. Treasury bills backing each stablecoin 1:1. This income stream already exists—it’s the same yield that Tether and Circle capture, which earned them $7.4B last year. Glo Dollar redirects this income to fund public goods, including Celo’s Retro Funding.

What is Glo Dollar?

Glo Dollar (USDGLO) is a fully fiat-backed, US-regulated stablecoin that donates all profits to public goods and charities. It’s always redeemable 1:1 for USD or USDC, and receives monthly independent attestations ensuring transparency.

You can choose which causes to support directly from our dApp.

Glo Dollar is available on 8 chains, Celo, Optimism, Base, Ethereum, Polygon, Arbitrum, Stellar, and VeChain.

Risk Assessment

In April, Glo Dollar received our Bluechip rating, with an initial B grade. This places us in the top 10 fiat-backed stablecoins, and we’re deemed safer than Tether’s USDT, FRAX, FDUSD, among others. Glo Dollar received the following assessments:

  • Stability: Stable
  • Management: Very low risk
  • Decentralization: High risk (not relevant to the grade)
  • Governance: Low risk

Glo Dollar is developed by the Glo Foundation and issued by Brale. Brale is a US-regulated money services business, which is the same regulatory framework under which Circle issues USDC.

Summary:

By integrating Glo Dollar, GoodDollar can tap into the Liquidity Flywheel to drive growth and unlock sustainable funding through:

• Using USDGLO as collateral to enhance $G token stability

• Paying contributor grants in USDGLO to increase public goods funding

• Building $G/USDGLO liquidity pools to boost liquidity to help unlock grant funding for GoodDollar

This opens up GoodDollar to potentially receiving monthly grants, strengthening GoodDollar’s community and expanding its impact across the Celo ecosystem. This approach aligns with GoodDollar’s mission to build a sustainable, scalable ecosystem that reduces wealth inequality and fosters a “trickle-up” basic income economy.

Links

Thank you for your time. If you have any questions or feedback, please feel free to comment

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I think it’s a very good proposal. It has always seemed like a good idea to have a reserve of multiple assets, especially if they are assets that can also do good for other people.
I think having Glo dollars as a “predefined” use for activities paid for by GoodDao could be a very good idea! In general, defining the Glo dollar as an asset of the GoodDao treasury also seems like a good idea to me, except that the cdai that we have in the reserve generates returns that are used to issue G$ and distribute among the active claimants (at least that was the case before the attack on the reserve).

Recently, it was proposed to relaunch the reserve by correcting the exploit. The Good Labs team demonstrated their intention to relaunch the reserve on Ethereum again as it was before, correcting the problem that caused the exploit.

What I mean is that a reserve should be created around the Glo dollar and, above all, see if the Ubi mint system would not be affected.
Perhaps a part of the reserve could be in Glo dollar, starting to make the reserve a multi-collateral reserve so that G$ continues to be minted for people while at the same time it can have an impact through Glo dollar.

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I think that starting to have the Glo dollar as a general treasury use, making that Swap is very easy and can be done quickly while we still thinking about the reserve collateral and the options that exist

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Hi Lana,
a good proposal yes. I am strongly in favor of strengthening the synergy between both these projects. Using Glo Dollar as the preferred stable coin seems like an easy step to start with.

One question I have is about UBI. Glo Dollar started out with a focus on UBI but has moved to supporting public goods in a wider sense. Since GoodDollar is focused on UBI, is it possible somehow to direct any contributions from GoodDollar to Glo Dollar towards UBI?

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Thanks so much @senryu for the questions!

  • Our goal is to support UBI efforts indirectly by having GoodDollar participate in our Celo public goods flywheel. This will effectively redirect funds into UBI initiatives through GoodDollar’s work.

  • While Glo Dollar no longer focuses solely on UBI, individual holders and communities like GoodDollar can select causes aligned with UBI goals. Options like “Fighting Extreme Poverty” and “Help Refugees” ensure Glo Dollar profits continue to support related impact areas.

Let me know if you have any other questions or want clarification.

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Thank you, @MAMQ01, for the thoughts and ideas!

We would love to see Glo Dollar included in the reserve. As a 100% fiat-backed stablecoin, we would bring a lot of trust and stability.

As you mentioned, a treasury swap now could be a good first step while taking the time to look at the reserve collateral.

Do we need to do anything specific to take that first step via a treasury swap?

Again, we appreciate your feedback!

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I’m just a member of the community, here we can all leave our opinions. You are free to launch the proposal that you think is pertinent (as long as it has been discussed for a pertinent time, almost 7 days).

You need a certain amount of GOOD (governance power). If you don’t have enough GOOD, you can ask for help from the current moderation team @GIMT_Team (they are), from the community members (in the proposal discussion space you can find some supporters of your proposal) or from the Good Labs team to present it on your behalf/as co-author.

If you need Good for the proposal, I have enough Goods to present it in your name, leaving you as the author

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Sorry, I forget tag you in the last reply

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The connection between GOOD projects is important. I’ll vote FOR this.
BTW we can hold an event like here: Proposal for Monthly “Pump Event” to Boost GoodDollar (G$) Liquidity - Community Ideas - GoodDollar to promote USDGLO - G$ liquidity pair.

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This is wonderful, thank you!

I’ll draft up something this week. I appreciate all the feedback and support!

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@lanadingwall

  1. Is there a way to incentivize users that LP with GLO at the moment on Celo?
  2. How is swapping the cUSD in the treasury to GLO going to make a change? as it wouldn’t increase the total GLO on Celo or give any specific funding to G$
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