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Aura Finance (AURA) is a DeFi protocol built on top of Balancer, designed to maximize rewards for Balancer liquidity providers and BAL stakers. It achieves this through social aggregation of BAL deposits and its native token, AURA. The protocol offers boosted yield and governance power, allowing users to earn extra rewards and vote on governance proposals.
Aura Finance (AURA) is a yield generation application built on the Balancer protocol. It is designed to maximize rewards for Balancer liquidity providers and BAL stakers by aggregating and optimizing their yield potential and governance power.
For liquidity providers on Balancer, AURA is used to earn boosted yield. By staking their liquidity positions on Aura, users can earn higher yield without needing to hold veBAL, which is a token that requires locking up BAL tokens. Aura controls a significant amount of veBAL, allowing it to provide boosted rewards to Balancer LPs without individual LPs needing to lock up veBAL themselves. LPs who stake their position on Aura pay a 22.5% performance fee on the BAL emissions they receive, incentivizing more people to lock their BAL tokens into Aura, ensuring more pools can receive boosted rewards.
For BAL stakers, AURA is used to earn extra yield without needing to lock veBAL. Aura has created auraBAL, a liquid derivative that can be minted 1-1 for BAL. auraBAL earns the same fees as veBAL, plus a majority of fees that Aura charges LPs for boosting rewards, along with AURA emissions. This allows investors to earn more yield than veBAL without requiring token locks.
Additionally, AURA is used to direct the flow of incentives to Balancer pools. auraBAL holders forfeit the right to vote on which pools receive BAL incentives in return for additional yield and a liquid token. The AURA token, particularly vlAURA, plays a crucial role in this process, as it is used to vote collectively on Balancer and Aura proposals.
Overall, AURA is used to optimize yield and governance power on Balancer, providing a unique protocol that coordinates incentives around vote-escrowed tokens and empowers DeFi liquidity providers and governance token stakers.
To store Aura Finance (AURA) tokens securely, it is recommended to use a cold wallet, which is a wallet that is not connected to the internet. There are two types of cold wallets:
Paper Wallet: This is a simple and cost-effective option. You generate a public and private key offline using a program, print them on a piece of paper, and store them securely. The keys are printed in the form of QR codes that you can scan for future transactions.
Hardware Cold Wallet: This is a physical device that stores your cryptocurrency. Your crypto addresses and keys are kept in a USB drive device, and only the person with the USB drive can access the assets. Hardware wallets are preferred by many users, especially for storing large amounts of coins or tokens.
To buy Aura Finance (AURA) tokens, you can follow these steps:
Buying on a Centralized Exchange (CEX)Choose a CEX: Select a reliable and trustworthy crypto exchange that supports AURA purchases, such as KuCoin or Binance. Consider the ease of use, fee structure, and supported payment methods when choosing an exchange.
Create an Account: Enter the required information and set a secure password. Enable 2FA using Google Authenticator and other security settings to add an extra layer of security to your account.
Verify Your Identity: Complete KYC verification, which may require different information based on your nationality and region. This step will give you access to more features and services on the platform.
Add a Payment Method: Follow the exchange's instructions to add a credit/debit card, bank account, or other supported payment method. The information you need to provide may vary depending on your bank's security requirements.
Buy AURA: You can now buy AURA using fiat currency if supported, or by first purchasing a popular cryptocurrency like USDT and then exchanging it for AURA.
Choose a Wallet: Select a reliable and reputable crypto wallet that supports AURA, such as MetaMask. Download the wallet application to your device from the Google Play Store, App Store, or as a browser extension.
Create a Wallet: Create a new wallet address or import an existing one. Make sure you write down the seed phrase and keep it in a secure place.
Buy AURA: Purchase AURA using a supported payment method. Check the fees, as they may be higher than what exchanges charge. If your wallet doesn’t support direct fiat-to-AURA purchases, you can first buy a more popular cryptocurrency like USDT and then exchange it for AURA through your crypto wallet or on a decentralized exchange.
Locate the AURA Trading Pair: Find the AURA trading pair on the DEX platform, such as AURA/ETH or AURA/USDT. Ensure your wallet has enough funds to make the purchase.
Make the Purchase: Use the DEX to buy AURA tokens. Popular DEXs for AURA include Balancer V2 and CoinEx.
- AURA tokens can be traded on both decentralized exchanges and centralized crypto exchanges.
- The most popular exchange to buy and trade Aura Finance is Balancer V2.
- You can also add AURA to MetaMask to view your token holdings and trade on decentralized exchanges.
Aura Finance (AURA) is a yield aggregator protocol built on top of Balancer, designed to simplify liquidity provider (LP) rewards and direct incentives to willing market participants. The protocol maintains a synergistic relationship with Balancer to maximize LP value. Aura further offers bribe services to protocols seeking to utilize Aura's control of veBAL to direct liquidity to desired pools.
Aura Finance was created to provide maximum incentives to Balancer liquidity providers and BAL stakers. It achieves this through the social aggregation of BAL deposits and Aura’s native token. The protocol offers a seamless onboarding process to veBAL for BAL staking participants through the creation of a tokenized wrapper token known as auraBAL. This token represents the 80/20 BPT that has been locked up for the maximum time in VotingEscrow.
Aura makes the process of depositing into the Balancer gauge system much simpler for providers of liquidity by providing a streamlined onboarding procedure for any and all Balancer gauge deposits. Aura enables depositors to achieve a high boost through the protocol-owned veBAL while simultaneously accruing additional AURA rewards for their participation.
In 2022, Aura managed to reach significant milestones, including a total value locked (TVL) of over $400 million, becoming a top 20 DeFi protocol on Ethereum, developing multiple protocol ecosystem integrations, and establishing a substantial veBAL voting share.
The AURA token serves as a tool for governance and incentivizing participants within the ecosystem. Locked AURA tokens can vote on internal proposals and use the voting power owned by the protocol itself when it comes to veBAL voting. These tokens also have governance rights within the system.
Aura Finance has a market capitalization of $38.88 million and a circulating supply of 39.25 million coins. The protocol has seen significant trading activity, with a 24-hour trading volume of $236.03 thousand.
Overall, Aura Finance aims to enhance the yield and governance power of users on the Balancer platform, making it a valuable tool for liquidity providers and stakers alike.
Aura Finance is a decentralized finance (DeFi) protocol that enhances yield and governance power for users on the Balancer platform. Here's how it works:
Key ComponentsAuraBAL: A tokenized wrapper token that users receive when they lock their 80BAL20ETH Balancer Pool Token (BPT) on Aura Finance. This token provides yield exposure to veBAL and allows users to earn additional rewards without locking their BPT for a year.
AURA Token: The native token of Aura Finance, used for governance and incentivizing participants. Locked AURA tokens can vote on internal proposals and veBAL voting.
Staking: Users can stake their AuraBAL to earn rewards, including BAL and AURA. These rewards are generated from the performance fees of Aura and veBAL fees.
Liquidity Pools: Users can also contribute to the auraBAL/[80/20 BAL/ETH BPT] Balancer pool, which allows them to earn additional AURA rewards for providing liquidity.
Decentralized Governance: Aura is a community-governed protocol where token holders direct actions through Aura Vote Locking. Governance includes internal proposals, treasury management, and Balancer Snapshot voting.
Vote Delegation: Users can delegate their voting power to other entities, such as Hidden Hand, to participate in governance decisions.
- Arbitrum Integration: Aura has expanded to the Arbitrum network, allowing users to accumulate incentives on this chain while benefiting from lower gas costs. Users can mint, stake, and unstake AuraBAL on Arbitrum.
- Pool Deployment: When a new pool is deployed, it goes through a bootstrapping phase where rewards are streamed over time. This phase typically lasts around a week.
Emissions: After a vlAURA gauge vote closes, emissions start and are streamed for about a week, starting on Wednesdays.
Voting: vlAURA gauge votes occur every two weeks, and users can participate in these votes to direct the protocol's actions.
Overall, Aura Finance provides a platform for users to maximize their yield and governance power on Balancer by leveraging tokenized veBAL and the AURA token.
The token Aura Finance (AURA) has several strengths that contribute to its value and utility within the ecosystem:
Governance and Incentivization: The AURA token acts as a governance and incentivization tool, allowing locked AURA tokens to have governance rights in the system and vote using the protocol-owned veBAL voting power.
Boosted Yield for Liquidity Providers: Aura provides liquidity providers with a seamless onboarding process to Balancer gauge deposits, offering a high boost through the protocol-owned veBAL and additional AURA rewards. This results in higher yields for liquidity providers without requiring them to lock up veBAL themselves.
Seamless Onboarding for BAL Stakers: Aura offers BAL stakers a smooth transition to veBAL through the tokenized wrapper token auraBAL, which can be staked to receive existing rewards from Balancer, additional Aura system revenue, and AURA tokens. Users can trade their auraBAL back to BAL at any time, providing flexibility.
Native Token Rewards: AURA tokens are minted alongside BAL earned and paid to liquidity providers and other ecosystem users, creating additional incentives and rewards for participants.
Protocol Owned veBAL: Aura's control over a significant amount of veBAL allows it to provide boosted rewards to Balancer LPs without individual LPs needing to lock up veBAL themselves, making it more accessible and beneficial for liquidity providers.
Flexibility and Liquidity: The existence of incentivized liquidity pools for trading between auraBAL and BAL ensures that users can easily convert between the two tokens, providing liquidity and flexibility in the ecosystem.
These strengths collectively enhance the value proposition of the AURA token and contribute to its utility within the Aura Finance ecosystem.
Aura Finance (AURA) is a cryptocurrency project that carries several financial risks. These risks include:
- Smart Contract Risks: The protocol's smart contracts are subject to potential malfunctions, bugs, hacking, or negligent coding, which can result in the loss of digital assets.
- Dependence on Public Networks: Aura Finance relies on public peer-to-peer networks like Ethereum, which are outside its control and subject to risks such as cyber attacks, regulatory uncertainties, and chain "forks".
- Third-Party Dependencies: The use of third-party software, such as wallet software or nodes, introduces additional risks when interacting with the protocol.
- Private Key Management: Users are solely responsible for the safekeeping of their private keys, and the loss of these keys can result in the loss of assets.
- Rate Projections: The projected rates of return, such as APYs or APRs, are forward-looking and based on simplifications and assumptions. These projections may not accurately reflect future performance and are subject to various risks and uncertainties.
- Market Fluctuations: The value of AURA tokens can fluctuate significantly due to market changes, which can impact the overall financial performance of the investment.
- Risk Assessment: Independent analyses, such as those by InvestorsObserver, have given Aura Finance a high risk score, indicating that it is a relatively high-risk investment.
These risks highlight the importance of careful consideration and thorough research before investing in Aura Finance (AURA).
- Daniel Matuszewski: Co-founder of CMS and signer on the treasury multisig.
- 0xMaki: Contributor to Aura and LayerZero, co-founder of Sushi, and advisor to Tokemak; signer on both treasury and protocol multisigs.
- Darren Lau: Founder of The Daily Ape and prominent DeFi VC; signer on the treasury multisig.
- Sami: Founder of Redacted Cartel; signer on the treasury multisig.
- Tetranode: Ethereum whale and DeFi contributor; signer on the treasury multisig.
- 0xMaha: Contributor to Aura Finance; signer on both treasury and protocol multisigs.
- Stefan George: Co-founder and CTO of Gnosis; signer on the treasury multisig.
- Emiliano Bonassi: Prominent DeFi security researcher and Yearn Finance developer; signer on the protocol multisig.
- Sarang Parikh: Core developer of Sushiswap and Aura core developer; signer on the protocol multisig.
- Solarcurve: Advisor to BeethovenX and "baller" at Balancer; signer on the protocol multisig.
- Mike B: Balancer community member and active governor since Q3 2021; signer on the protocol multisig.
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