WalletConnect is an open protocol for establishing secure communications between DApps and Wallets. Celo Terminal supports WalletConnect v2.0 out-of-the box.
If the DApp supports WalletConnect, it will list it as one of the available wallet options.
Once you select "Wallet Connect" option, DApp will generate a QRCode. You will need to Copy & Paste that QRCode in Celo Terminal app.
Click Connect and Approve the connection with the DApp.
When the DApp needs to perform a transaction, it will send it for signing to Celo Terminal using the WalletConnect protocol. When there are pending transactions, WalletConnect menu-item will show a notification.
When you open the WalletConnect app inside Celo Terminal, regular transaction flow will start. You will be able to sign or reject the transaction in Celo Terminal and it will be executed by the DApp itself afterwards.
WalletConnect v2 is still in the Beta mode, thus there can still be some unexpected issues. If you are running into any weird issues with the DApp connections, you can try following things:
Reload Celo Terminal: "Ctrl + R" (on Windows), or "Command + R" (on Mac)
If reloading doesn't fix the issue, you can disconnect all DApps and reset the state using the appropriate button in the WalletConnect app.