The core of the Celo ecosystem consists of two different types of cryptocurrencies: Celo coin (CELO) and stablecoins. CELO, as the native token of the Celo blockchain, plays multiple roles in the network. It is not only a key tool for network governance, allowing holders to participate in major decisions, but also a necessary medium for paying transaction fees. Additionally, by staking CELO, users can become network validators, contribute to the security of the ecosystem, and earn corresponding rewards.

At the same time, the Celo ecosystem has introduced stablecoins pegged to fiat currencies, among which the most representative are Celo Dollar (cUSD) and Celo Euro (cEUR). These stablecoins are designed to provide users with a price-stable digital asset option, maintaining a 1:1 price relationship with the US dollar and the euro, respectively.

Taking cUSD as an example, its stability mechanism is built on an innovative 'over-collateralization' model. This model requires that the issuance of the stablecoin must be backed by CELO worth more than its value, with the collateralization rate typically exceeding 150%. This design ensures that even in the case of significant market fluctuations, cUSD can still maintain its value stability.

Celo's stablecoins have shown significant advantages in practical applications, especially in the field of inclusive finance. They support low-cost cross-border transfers and daily payments, allowing users to perform various financial operations with just a smartphone, without the need for complex bank accounts. This greatly lowers the barriers to financial services, enabling more people to enjoy the convenience of the digital economy.

It is worth noting that Celo's stablecoin adopts a decentralized issuance and adjustment mechanism. Unlike traditional centralized stablecoins, such as USDT, the entire operation process of the Celo stablecoin is automatically executed by smart contracts, with collateral data being completely open and transparent, and can be queried on the blockchain at any time. This not only enhances the credibility of the system but also reduces potential centralization risks.

Overall, the Celo ecosystem cleverly balances innovation and stability through the dual driving force of CELO and stablecoins, providing new possibilities for building a more inclusive and efficient global financial system. As the ecosystem continues to develop and improve, Celo is expected to play an increasingly important role in promoting the adoption of blockchain technology and enhancing the accessibility of global financial services.