Authors: Lamentations (Aura)
Summary
Aura recently underwent an upgrade to bolster the protocol’s security, feature flexibility, and ability to support cross-chain fee collection and deposits. The upgrade shut down AURA rewards for deposits in the old iteration of the Aura contracts. This proposal, should it pass governance, recognizes and approves distribution of AURA from the protocol treasury to compensate LPs in the old iteration of Aura. The AURA will be distributed over the course of a number of weeks as LPs migrate and claim over time.
Background
During the second week of December, Aura began a protocol upgrade that required all liquidity providers to migrate their positions. The upgrade replaced the Booster contract, thus also replacing all active BaseRewardPool contracts.
AURA is minted when BAL is earned by the Aura ecosystem (Aura LPs, veBAL owned by Aura, etc.), at an algorithmic rate determined by smart contracts. The upgrade shut down the ability for the old smart contracts to mint AURA against BAL earned. Because BAL continues to be emitted to Aura LPs until the pools expire later in the week of December 19th and some LPs did not claim pending rewards, a large of sum of AURA that was meant to be distributed to LPs was not.
The final amount has not yet been fully tallied by Aura contributors though it is likely to amount to approximately ~500,000 AURA, or just under 3% of the current circulating supply. Again, this is supply that was meant to be minted directly to LPs, though wasn’t due to the shutdown.
At launch, the Aura treasury was allocated 17.5% of the token supply (17,500,000) in a four-year vesting stream, as per Aura’s tokenomics. The stream has yet to be accessed but as of this proposal’s writing 2,245,318 AURA of the 17,500,000 is available to claim. Either this AURA can be used, or the 1,146,991 AURA currently in the treasury multisig, left over from the liquidity allocation at launch.
This proposal, should it pass, will ensure that DAOs that submitted voting incentives in recent cycles receive proper efficiency, thus minimizing friction for future rounds.
Terms
This proposal acknowledges and approves distribution of AURA from the treasury multisig. Details and data about the distributed AURA will be made available via official Aura channels.
Users aside from the treasury multisig will not be required to take any action. If this proposal passes, AURA will be claimable by all eligible LPs when the merkle trees and a claiming interface are established.
Voting
Due to the urgency of this vote and the upcoming holiday, it will go straight to vote out of the traditional AIP voting schedule, for a 48 hour period, such that LPs can get their AURA should it pass.
