Our goal: more Glo Dollars → more (Celo) public goods funding

The Glo Foundation is currently donating around $3.5–$4k per month to Celo Public Goods, but we aim to scale this up quickly. As USDGLO liquidity grows, so do our profits, all of which is donated.

This is why we prioritize increasing Glo Dollar liquidity. Whenever Glo Dollar liquidity grows:

1. More Glo Dollars circulate
2. Public goods funding grows
3. Love for Glo Dollar spreads
4. Liquidity grows even more

ELI5; how does this work?

1. Each month, we'll donate between $3.5k-$4k to Celo Public Goods.
2. CeloPG gets $1500 by default—and will distribute the funds via grants to Celo Public Goods.
3. The other ~$2000 is donated directly to every Celo Public Good with a token that has a liquidity pool with Glo Dollar. More Glo Dollar liquidity → More donations. Donations are split according to the liquidity in the pools on the last day of each month.

Projects need to check 2 boxes for eligibility

1. ^{They are considered a Celo Public Good}. Celo Public Goods are projects and individuals that are buiilding a regenerative economy leveraging the Celo blockchain. Most Celo Public Goods are listed in this database, and should have received a grant from CeloPG. The CeloPG Stewards will help us decide whether or not a project is considered a Celo Public Good.
2. ^{They have a token} that enables their community to create and add to liquidity pools of the token and Glo Dollar.

The state today (Oct 3, 2024); how Glo Dollar funds would be distributed

These are USDGLO's liquidity pools on Celo at the time of writing:

• $358 liquidity with G$ from GoodDollar
• $100 liquidity with Ube from Ubeswap
• $30 liquidity with $ENSURE
• $15 liquidity with $PACT from ImpactMarket

In the above scenario, there is $503 USDGLO liquidity against Celo Public Goods' tokens on Celo. The total Glo Dollar monthly proceeds are ~$2000:

• GoodDollar would receive $1444 (72% of $2000) as they cover 72% of USDGLO liquidity.
• Ubeswap would receive $400 (20% of $2000) as they cover 20% of USDGLO liquidity.
• etc.

The future state: how this will change in the coming months

As more Celo Public Goods mobilize their communities to contribute liquidity to USDGLO pools, the total amount of USDGLO will grow, leading to increased donations for Celo Public Goods.

These are hypothetical USDGLO liquidity pools on Celo:

• $1,000,000 liquidity with $Earth from Solarpunkdao
• $700,000 liquidity with ETHIX from EthicHub
• $400,000 liquidity with G$ from GoodDollar
• etc.

In the above scenario, there is $3M USDGLO liquidity against Celo Public Goods' tokens on Celo. The total Glo Dollar monthly proceeds are ~$12,000;

• Solarpunkdao would receive $3996 (33% of $12,000) as they cover 33% of USDGLO liquidity.
• EthicHub would receive $2760 (23% of $12,000) as they cover 23% of USDGLO liquidity.
• etc.

Sources of truth

• For projects with tokens rallying their communities to pool in Glo Dollar liquidity, we check this tracker and look at USDGLO liquidity in each pool.
• For projects that donate in Glo Dollars (USDGLO) in Gitcoin rounds, we check the total matching pool donated in a given month, and divide it by 2.
• For Refi Medellin, we check the lending contract, review total deposited amount, and subtract current amount in the contract.
• For Grassroots Economics, we check this Glo Dollar page on Sarafu Network.
• For Ubeswap, we check their USDC <> USDGLO farm, and divide the total by 2.

Not a token, but want to participate? Any other ideas to improve the Glo Liquidity Flywheel or any questions, email bram@glodollar.org.