SavingsCELO has a very simple design from the user's perspective:
  • User can deposit X amount of CELO to receive back Y amount of sCELO tokens.
  • After some time passes, user can return Y amount of sCELO tokens to redeem >X amount of CELO tokens back.
  • NOTE: Deposits are instant but redemptions are delayed by the unlocking period (3 days on Mainnet).
While the number of sCELO tokens a user holds doesn't change over time, the value of sCELO vs CELO increases as voter rewards come in. When a user eventually redeems their sCELO for CELO they will receive roughly the same amount of CELO back as if they had staked it on a validator group. sCELO interest accrual mechanism is very similar to how Compound cTokens work.
CELO -> sCELO conversion rate is calculated as:
  • Current total sCELO supply / Current total CELO deposited in SavingsCELO contract
Users can check current conversion rate by:
Users can interact with the SavingsCELO smart contract using an app in Celo Terminal, or by using a command line tool: savingscelo-cli