HomeNewsCelo's Race for Layer-2 Tech: Evaluating Ethereum Giants in Mid-January

Celo’s Race for Layer-2 Tech: Evaluating Ethereum Giants in Mid-January

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  • Celo’s primary developer, cLabs, outlines a mid-January timeline to select a Layer-2 technology provider for its network, with leading candidates including Optimism, Polygon, and Matter Labs.
  • This decision is crucial for Celo’s transition to a Layer-2 blockchain on Ethereum, aiming to boost its presence in the competitive decentralized finance landscape.

Celo’s Pivotal Layer-2 Transition

Celo, a significant player in the blockchain industry, is advancing towards a critical decision: selecting a Layer-2 technology provider to enhance its network. Amidst a tight competition between leading blockchain teams, Celo’s primary developer, cLabs, has proposed a timeline to conclude this selection process by mid-January.

Framework for Selecting the Ideal Partner

The developer has published a

“Framework for selecting an L2 stack”

on its discussion forum, inviting community feedback by mid-December. This framework will guide the evaluation of various contenders over the following month, with the decision being a key strategic move for Celo’s future.

In July, the Celo community approved the transition to a Layer-2 blockchain, recognizing the benefits of aligning with the Ethereum ecosystem rather than operating as an independent network. Initially, cLabs identified OP Stack from the Optimism ecosystem as the default technology provider. However, alternative proposals from Polygon and Matter Labs, backing the zkSync project, have intensified the competition.

Celo’s Competitive Position and Priorities

Celo currently ranks 27th in decentralized finance (DeFi) with a total value locked (TVL) of $102 million, a fraction compared to Ethereum‘s $26.2 billion and Solana’s $656 million. Despite its smaller size, the selection of a Layer-2 partner has become a fiercely contested proxy battle, with implications for setting industry standards and aggregating liquidity.

cLabs’ approach is not about choosing the ‘best L2 stack’ but finding the most suitable fit for Celo’s technical and non-technical needs. Key priorities include simple migration with minimal downtime, maintaining low gas fees, and ensuring Ethereum compatibility.

The Road Ahead for Celo

As Celo navigates this crucial phase, the proposal highlights a preference for proven, audited projects over those with ongoing design changes or untested implementations. This decision reflects cLabs’ urgency to progress swiftly in the fast-evolving blockchain landscape.


Celo’s upcoming decision on its Layer-2 technology partner is a significant step in the blockchain domain. The choice, slated for mid-January, will not only enhance Celo’s network capabilities but also shape its role in the competitive DeFi ecosystem. This strategic move underscores the importance of innovation and collaboration in the blockchain industry’s growth and evolution.

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Godfrey Benjamin
Godfrey Benjamin
Godfrey Benjamin is an experienced crypto journalist whose primary goal is to educate everyone about the prospects of Web 3.0. His love for crypto was sparked during his time as a former banker when he recognized the clear advantages of decentralized money over traditional payments. Business Email: info@ethnews.com Phone: +49 160 92211628