Authors: Yakitori, Fry
Aura allows users to deposit their
[80/20 BAL/WETH BPT] and receive auraBAL, instead of the non-transferrable veBAL. Tokenised auraBAL is given to the user at a 1:1 rate for veBAL, and is tradeable on Balancer Finance. This BPT is then locked up by the Aura protocol for the maximum time in Voting Escrow where it will allow Aura to benefit from its voting power for boosting rewards & voting for gauges.
Currently, Aura’s BAL fee (25% of all BAL farmed) is used the following way:
- 20.5% goes to auraBAL stakers. This is paid out as BAL + AURA + bbaUSD.
- 4% goes to AURA lockers. This is paid out as auraBAL.
- 0.5% goes to the harvest caller. This is paid out as BAL .
A healthy ratio between auraBAL and veBAL is important as it gives depositors confidence that they will be receiving valuable consideration for deposited veBAL, and peace of mind that they will be able to smoothly exit the system should their personal circumstances change. This certainty is what will allow Aura to continue accumulate veBAL governance power through user deposits. Currently, the auraBAL peg is a healthy 98.21%, the highest peg of available liquid wrappers on market.
This proposal aims to strengthen Aura’s accumulation of veBal by creating a new wrapper for auraBAL that has auraBAL and AURA as reward tokens. This wrapper reward contract will use all BAL and bbaUSD earned from the base auraBAL reward pool to market buy auraBAL. Fees will be immediately changed from 20.5% to auraBAL, to 18.5% going to auraBAL and a 2% capped platform fee. This 2% will be sent directly to the wrapper as auraBAL to increase the base yield. This additional reward ensures that there is a strong incentive for auraBAL stakers to migrate to the new contract as rewards will be higher.
BoostedAuraBalStaking contract will accept auraBAL as the staking token which will be staked into the existing
AuraBalStaking. Rewards from the
AuraBalStaking will be harvested each epoch. bb-a-USD and BAL will be batch swapped on Balancer for auraBAL. All of the auraBAL in the
BoostedAuraBalStaking contract will be re-staked into
AuraBalStaking to auto compound rewards.
The protocol DAO multisig will call
setFees on the
Booster with the following values,
200. The multisig will also call
setTreasury on the
Booster with the address of the
BoostedAuraBalStaking contract once available. In the interim fees will be collected to a reward forwarder contract. Then forwarded to the
BoostedAuraBalStaking once deployed.
This forum post will be live for approximately three days before the Snapshot proposal goes live. We appreciate and encourage an open discussion on this subject.
This vote will be a single-choice vote. You may vote “For” or “Against” this proposal, or choose to abstain from the vote.
By voting “For” this proposal, you are voting in favor of the creation of a new auraBAL wrapper, and changing fees to 18.5% to auraBAL and a 2% platform fee, implemented upon approval of this proposal.