Great post, @Yakitori, and a lively discussion today in the Discord server general channel. Let’s keep it up. I’ll save the balance of my commentary for now, but I think the proposals made today were actually slightly little different.
@solarcurve proposed a bit of a different mechanism. I think he proposed to have the auraBAL yield that goes to vlAURA to be comprised by automatically purchasing auraBAL from the market in order to support the peg. Currently, the auraBAL that goes to vlAURA positions is minted, not purchased.
I believe solar and/or you also suggested increasing the 25% fee that is currently charged by Aura on boosted BAL yields for BPTs that are staked on Balancer through Aura.
I also suggested, if feasible from a technical implementation perspective, to increase the 25% fee for BPTs that are staked on Balancer through Aura only for those Aura pools that are not receiving vlAURA votes but are receiving Aura emissions. This could be done in conjunction with any of the buyback proposals.
For more information on the fee, see the Aura docs, AIP-4, and AIP-13.