This proposal requests Season 2 funding for Stabila to execute a focused set of DeFi liquidity and infrastructure initiatives aligned with Celo Governance’s Season 2 intent to grow TVL and deepen onchain market activity.
Building on Season 1 learnings, Season 2 narrows scope, improves capital efficiency, and prioritizes incentives that support durable, usage-driven liquidity across Celo’s core DeFi primitives, including DEXs, lending markets, and FX trading infrastructure. Unspent Season 1 funds, as outlined in the Stabila’s Season 1 Progress Report, will roll forward into Season 2 and be applied to initiatives extending beyond the Season 1 window, reducing the net incremental funding requested.
Season 1 demonstrated that incentive effectiveness on Celo is strongest when capital is concentrated in:
Core DEX liquidity that underpins lending and FX markets Lending markets that expand stablecoin supply and collateral utilization Infrastructure that enables sustained onchain activity rather than short-term TVL spikes Season 2 reflects a deliberate shift from broad ecosystem bootstrapping toward focused execution, aligned with governance priorities around capital efficiency, sustainable TVL growth, and coordination with Celo’s evolving tokenomics framework.
In this context, Stabila’s role in Season 2 is to compound the most effective components of Celo’s existing DeFi stack while reducing fragmentation and improving incentive efficiency. Continued, targeted incentive support ensures core infrastructure remains healthy and usable, providing a stable foundation for new protocol launches to build on existing liquidity and market depth.
Stabila’s Season 2 mandate is to execute a focused set of high-impact DeFi initiatives designed to compound liquidity, usage, and market depth over time.
Primary objectives:
Scope of Work Season 2 (January 1 – June 30, 2026):
Incentives will be deployed across a small number of high-conviction DeFi primitives, with flexibility to rebalance between protocols based on performance and ecosystem needs.
| Protocol | Description |
|---|---|
| DEX Liquidity | Incentivize blue-chip and FX-related stablecoin pools that underpin lending markets and downstream DeFi infrastructure on Celo. Deployment may span Uniswap, Velodrome, Carbon DeFi, and/or other DEXs based on observed effectiveness, liquidity retention, and market conditions. |
| Aave | Extend incentive support as part of Celo’s existing long-term commitment to Aave, with a focus on stablecoin supply growth, collateral utilization, and onboarding of new assets in coordination with the Aave ACI team. |
| Morpho | Support deployment on Celo (targeting early Q1), including curated FX, stablecoin, and CELO/stCELO collateral markets (including stCELO) that complement Aave, in collaboration with an external risk curator. |
| Celo-native FX Perpetual Exchange | Support launch and early scaling on Celo (targeting early Q1). |
| Partner Development & Additional DeFi Infrastructure | Maintain flexibility to support emerging partnerships, including RWA issuers, yield-bearing assets, prediction markets, and automated liquidity or vault products aligned with Season 2 priorities. |
Metrics Season 2 performance will be evaluated against the following metrics:
TVL Growth:
Protocol & Infrastructure:
Ecosystem Usage & Integrations:
Seasonal Reporting: Publish forum update on spend, KPIs, and outcomes
Season 2 builds on initiatives executed during Season 1, as well as unspent budget rolled forward into Season 2. Detailed outcomes and learnings from Season 1 are documented in the Stabila Season 1 Progress Report.
This proposal covers Season 2 (January–June 2026).
| Category | Initiative | USD Amount |
|---|---|---|
| DeFi Protocol Incentives | Decentralized Exchanges | $150,000 |
| Aave | $500,000 | |
| Morpho | $100,000 | |
| FX Perpetual Exchange | $75,000 | |
| Partner Development & Emerging DeFi Integrations | $55,000 | |
| Marketing & Operations | Marketing & Ecosystem Engagement | $40,000 |
| Legal & Administrative | $30,000 | |
| Total | $950,000 |
The amounts listed above represent the incremental Season 2 funding requested from governance. Total incentive deployment during Season 2 may exceed these amounts due to the use of unspent Season 1 funds rolled forward.
Total expected deployment across DEX liquidity incentives during Season 2 is approximately $500k, funded through a combination of Season 2 funding and existing Stabila reserves carried over from the prior season. This structure provides flexibility to allocate capital toward the most effective DEX venues based on observed performance and liquidity retention.
As part of Celo’s three-year, $3M ecosystem incentive commitment to Aave, incentives are structured on an approximately straight-line basis of ~$1M per year, or ~$500k over the six-month Season 2 period.
Total expected deployment for Morpho during Season 2 is up to $500k, supporting initial market bootstrapping and early scaling. This deployment will be funded through a combination of Season 2 funding and existing Stabila reserves.
Season 2 funding will be requested in CELO, equivalent to $950,000 USD, with the CELO amount calculated using the 90-day trailing average CELO price at the time of submission.
Upon approval, funds will be withdrawn and sent to the Stabila multisig wallet: 0x9C257bDC314dc516e673728D70F45444F6e22412
Unused funds will be returned to the Community Fund or rolled forward, subject to community input.
Celo Multi-Sig: 0x9C257bDC314dc516e673728D70F45444F6e22412
Current Signers:
Season 2 represents a transition from broad ecosystem bootstrapping toward compounding the most effective components of Celo’s DeFi stack. With rollover capital from Season 1 and a more focused execution framework, Stabila aims to deliver more durable, sustainable TVL growth with a reduced incremental funding request.
Fill out the following template for each transaction in the proposal
[
{
"contract": "GoldToken",
"address": "0x471EcE3750Da237f93B8E339c536989b8978a438",
"function": "increaseAllowance",
"args": [
"0x9C257bDC314dc516e673728D70F45444F6e22412",
"5622470430000000000000000"
],
"value": "0"
}
]
A human readable version of this proposal can be found using the following command (on-chain ID determined after submission):
$ celocli governance:show --proposalID xxx --node https://forno.celo.org
This proposal does not deploy or upgrade contracts or change network parameters so represent minimal risk to the network. This proposal does transfer funds from the Community Fund, but rather seeks an approval to pull funds from the fund, which means that the funds will not be lost if the approval address has a typo.
https://forum.celo.org/t/stabila-season-2-funding-request