Original author:0xMaki
Original author:
Compilation of the original text:foresightnewsThus, Balancer V2's governance rights and protocol dividend rights are deeply bound to veBAL.
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Since veBAL was launched 10 days ago, more than 23% of veBAL has been locked
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overview
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details
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Aura Finance is a new protocol built on the Balancer system, which provides maximum incentives for LP and BAL stakers on Balancer by aggregating users' BAL deposits and Aura's native token AURA.
For BAL stakers, Aura provides a seamless usage process for veBAL by creating a tokenized wrapped token, auraBAL:
The auraBAL token represents the 80/20 BPT locked for the longest time in VotingEscrow, and users can stake BAL in Aura to obtain existing bb-a-USD reward income in Balancer (Foresight News notes, composed of USDT, USDC, DAI and The BPT composed of aUSDT, aUSDC, and aDAI is issued as a protocol fee that veBAL pledgers can obtain).
In addition, it also includes BAL distribution income and additional AURA rewards provided by the Aura system, and users can exchange auraBAL token transactions back to BAL through the BPT deep stable pool at any time.
The BAL locked in Aura will cease to circulate, and it is our goal to be consistent with the DAO.
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Token AURA and Governance
Aura Finance also proposes to use AURA tokens as a governance and incentive tool in the ecosystem. The locked AURA tokens will have governance rights in the system and be able to use the veBAL voting rights owned by the protocol to vote, so as to be on top of Balancer. Create a thriving AURA ecosystem.
At the same time, with increased power comes increased responsibility. This is a huge economic force as it effectively controls the flow of Balancer incentives for the next 20 years. This control must therefore be fully decentralized, and Aura has added voting delegation to the system to make this process entirely on-chain. Once the voter base has matured enough, control will be transferred from 4/7 multisig to a set of on-chain contracts.
Aura's Voting contract supports EIP1271, which means that the results of on-chain voting can be forwarded to Snapshot to participate in Balancer governance. This transition should take place after the Aura voting contract has been field-tested and the voter base matures (3-4 months after launch).
Without giving too many details, here is a quick overview of the AURA distribution:
50% pro rata reward points to the BAL received through Balancer LP on Aura;
10% will be issued to the auraBAL/BPT liquidity pool, which will be released in 4 years;
5% rewards to the Aura/ETH liquidity pool;
17.5% belong to the treasury;
2% is used to guide incentive token holders;
0.5% is distributed to the voters of the proposal (persons permitted to vote);
1% for future incentives;
2% is used for BAL treasury, which will be released in two years;
2% is used for system guidance incentives;
10% is used for Aura team incentives and will be released in two years;
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team
The Aura team is made up of DeFi builders and pioneers with a proven delivery track record, Aura Finance is currently being audited by Peckshield and plans to conduct two more audits in partnership with top firms.
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proposal specification
It is recommended that Balancer multisig add a smart wallet checker on the contract, and then whitelist the veBAL depositor contract provided by Aura Finance after the proposal is successful, and the Balancer team will manually review this contract before whitelisting.
