What is Celo dollar backed by?

As a cryptocurrency enthusiast, I'm curious to understand the underlying value proposition of Celo dollar. Could you elaborate on what specifically backs the value of Celo dollar? Is it backed by a traditional asset reserve, like gold or fiat currencies? Or does it derive its value from some other innovative mechanism, such as staking or network usage? Understanding the underlying backing of Celo dollar is crucial for assessing its long-term stability and potential as a digital currency.