Celo is an Ethereum Layer 2 network designed to bring decentralized finance (DeFi) to mobile users. Unlike traditional blockchains that rely on complex cryptographic addresses, Celo utilizes a lightweight identity layer called SocialConnect. This allows users to send assets using phone numbers as identifiers , significantly reducing the friction for onboarding non-technical users in emerging markets.

The Celo network has recently undergone a fundamental architectural shift to align with the Ethereum ecosystem:

Layer 2 Migration (March 2025): Celo successfully transitioned from an independent Layer 1 to an Ethereum Layer 2 using the OP Stack (Optimism). This migration reduced block times to 1 second and secured the network using Ethereum’s validator set, while using EigenDA for cost-effective data availability.

MiniPay Standalone Launch: Following its integration into the Opera browser, the stablecoin wallet MiniPay launched as a standalone application in early 2025. By September 2025, the wallet reportedly surpassed 10 million active users, driven by its support for native stablecoin payments.

Native Stablecoin Gas: The network expanded its "Fee Abstraction" capabilities. Users can now pay for gas fees directly using native USDC and USDT (both launched natively on Celo in 2024), removing the need to hold volatile assets just to process payments.

The CELO token serves critical functions within the Layer 2 architecture:

Governance: CELO holders vote on Layer 2 configuration parameters, including sequencer rules and contract upgrades.

Staking: Users stake CELO to secure the decentralized sequencer set (depending on the specific stage of decentralization) and to participate in governance.

Refi & Carbon Offsetting: A portion of protocol fees is automatically directed toward the Carbon Offsetting Fund, maintaining the network’s carbon-negative status.

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Architecture: Ethereum Layer 2 (OP Stack)

Data Availability: EigenDA

Block Time: 1 Second

Stablecoin Support: cUSD, cEUR, USDC, USDT (Native)

Total Supply: Fixed cap of 1 Billion CELO