What is Aura Finance?
Aura Finance is a project built on top of the Balancer system in order to support and optimize incentives for Balancer liquidity providers and BAL stakers. Note that Aura Finance and Aura Network are two different projects. Although the token of both projects is AURA, Aura Finance’s token is issued on Ethereum while Aura Network’s token is on BNB Chain.
Operation model
At a glance, Aura Finance’s operation model and its impact on Balancer has many similarities with Convex Finance of Curve Finance.
The original operation model of Balancer is very simple. Users provide liquidity for one pair of tokens and over time, they will receive back BAl tokens used to participate in protocol governance. However, after seeing disadvantages in governance, Balancer issued veBAL token to optimize governance rights.
For BAL stakers, Aura provides a seamless onboarding process to veBAL, by creating a tokenized wrapper token called auraBAL that represents the 80/20 BPT locked up for the maximum time in VotingEscrow. auraBAL can be staked to receive existing rewards (BAL and bbaUSD) from Balancer, and receive additional BAL and AURA from transaction fees on Aura Finance. This process is not reversible but users can sell auraBAL back to BAL via liquidity pools.
AURA Token
Token specs
- Token Name: Aura Financial Token
- Ticker: AURA
- Blockchain : Ethereum
- Token Standard: ERC-20
- Contract : 0xc0c293ce456ff0ed870add98a0828dd4d2903dbf
- Token Type: Governance
- Total supply : 57,755,526
- Maximum supply: 100,000,000
Distribution
- 50% Balancer LP rewards Rewarded pro-rata for BAL received on Aura
- 10% for StableSwap auraBAL/BPT over 4 years
- 2% added to an LBP to bootstrap liquidity
- 3% to be paired with earned ETH in an 80/20 AURA/ETH LP (initial liquidity)
- 17.5% Treasury vested over 4 years
- 2.5% bootstrapping token holder base
- 1% for future incentives
- 2% BAL treasury over 2 years
- 2% veBAL bootstrapping incentives
- 10% for the Aura contributors over 2 years
Note: 100% Fair launched no VC – Seed investors
Use cases
Locking AURA
AURA is often locked in the protocol so that users can get the right to participate in managing how the protocol works. For users who have locked AURA and delegate their voting, before the start of the following epoch will be able to participate in all decisions surrounding the molding of the protocol. Locks last for 16 weeks.
In addition, locking AURA also empowers users to manage the Balancer. Locked AURA tokens will be converted to veBAL tokens. Therefore, locking tokens will have a relatively large impact on the allocation of tokens used for rewards in the protocol.
Delegation
It is possible to delegate your voting power to a specific address. This might be useful if you are not an active governor or you wish to take advantage of third party protocols.
Uses
Balancer gauge voting: It is possible to direct the flow of incentives on the Balancer protocol by voting for specific gauges.
Internal governance:Vote on changes to the Aura protocol
Treasury management: Direct the Aura treasury
Balancer snapshot voting: Vote on the outcome of Balancer snapshot proposals
More information about Aura Finance, please visit: https://aura.finance/