This proposal seeks to optimize the current set of trading pairs within the Mento Protocol by simplifying the asset routing architecture. Specifically, we propose to deprecate several lower-utilization pairs that have become operationally burdensome and instead consolidate liquidity routing through a cUSD-centric model. Additionally, this proposal introduces new core pairs with cUSD and updates several protocol parameters (like spreads, limits, circuit breakers, etc.) following a holistic review of the current system.
As the number of assets and pairs supported by the Mento Protocol has grown, maintaining them individually—especially those with lower usage—has introduced increasing operational and technical complexity. Additionally, many of these pairs require dedicated oracle feeds and liquidity calibration, which do not yield commensurate utility. We propose a shift toward a more streamlined architecture where all major assets are routed through cUSD, which is already the most liquid and widely used stable asset on Celo. This shift allows us to:
Importantly, these changes will not remove any user-facing functionality; all swaps will remain possible through the updated routing logic.
The following pairs are proposed for deprecation:
These pairs will no longer be directly maintained, but all swaps will remain executable through intermediate routing via cUSD.
To enable complete swap coverage via cUSD, we propose adding the following base pairs:
These additions ensure that all stable assets in the Mento Protocol can route to one another in two hops or fewer.
In conjunction with this proposal, Mento Labs has conducted a comprehensive review of all active pair parameters. Based on this analysis, we will propose adjustments to:
These parameter changes are intended to enhance market efficiency, reduce slippage, and strengthen Reserve robustness.
Please refer to the forum post for a detailed description of verification steps.
The primary risk associated with this proposal is ensuring that the new parameters (spreads, limits, circuit breakers, etc.) are correctly set. To mitigate this risk, we will conduct extensive testing on Alfajores and publicly share all proposed parameter values in the forum for community review and verification prior to the execution of the proposal on mainnet.