Authors: Fry, 0xMaha, 0xAhtle, Hephyrius
Summary
We are pleased to present a proposal for Aura Finance’s strategic cross-chain deployment onto Arbitrum. This significant initiative is the start of our cross-chain rollout and aims to unlock opportunities for Aura’s growth and expand our presence beyond mainnet and level up the Balancer ecosystem.
Motivation
By extending Aura’s reach beyond the confines of mainnet, this proposal aims to unlock new avenues of growth and innovation for the Aura ecosystem.
Arbitrum has been chosen for Aura’s first deployment due to its impressive community of DeFi projects. Furthermore, a significant portion of Balancer’s sidechain Total Value Locked (TVL) is on Arbitrum, highlighting the networks potential to attract substantial liquidity and drive growth in the DeFi ecosystem.
This cross-chain deployment on Arbitrum represents a significant step forward for Aura Finance and its community. It strengthens Aura’s position as a leading defi platform, fostering enhanced accessibility and flexibility for its users.
Key Details
AuraOFT, AuraBalOFT and Layer Zero
To seamlessly bridge AURA and auraBAL tokens across chains, Aura Finance will leverage the Layer Zero Protocol. This protocol is designed to facilitate secure and efficient cross-chain communication, enabling Aura holders to transfer their tokens between Arbitrum and mainnet.
Aura and auraBAL tokens that exist on layer 2s and sidechains will be OFTs (Omnichain Fungible Tokens). OFT is a standard developed by Layer Zero and audited by Ackee and Zellic. A ProxyOFT counterpart for each token will be deployed on mainnet. This will facilitate sending and receiving AURA and auraBAL from mainnet to any supporting chain as well as between supporting chains. Additionally, all bridged auraBAL will be staked in the auraBAL vault on mainnet earning yield. This yield will be distributed proportionally to vaults on each sidechain.
Deposit and Earn Aura and Boosted BAL Rewards
Once the deployment on Arbitrum is live, users will be able to deposit into Aura and earn rewards, just as they would on mainnet. Additionally, It will allow users to benefit from boosted BAL rewards utilizing Balancer’s new cross chain veBAL boosting, further enhancing the potential within the Aura ecosystem.
Deposits will be supported by the same set of contracts as are deployed on mainnet. The Booster, BoosterOwner, VoterProxy and PoolManager are supported as “lite” versions with the mainnet specific functionality such as voting removed.
BoosterLite | BoosterOwnerLite | VoterProxyLite | PoolManagerLite
auraBAL Staking
Unlock the potential of your auraBAL tokens by bridging them to Arbitrum. Deposit them into the Arbitrum auraBAL Vault and experience leveraged auto compounding rewards similar to our mainnet offering.
All auraBAL deposited into the mainnet bridge contract (AuraBalProxyOFT) will be staked in the mainnet auraBAL vault earning yield. This yield will be periodically harvested and distributed to the sidechains. This enables and opportunity for a leverage APR based on a ratio of bridged to staked auraBAL on those supporting chains.
Audits and testing
As always, Aura takes security extremely seriously. All new contracts and integrations have been audited. Aura has audit reports from Halborn and Zellic. All new contracts have received a rigorous testing treatment. Our new contracts have 100% unit test coverage as well as full fork test suites.
Arbitrum Liquidity Provision
Due to the success of AIP-25, the Aura Treasury will bridge up to 1.5 million AURA tokens to Arbitrum for liquidity provision to an ARB/BAL/AURA pool. The pool tokens will be held within a shared escrow with Balancer. This strategic move will further promote the growth and utilization of the Aura ecosystem. With this significant commitment, Aura Treasury demonstrates its unwavering dedication to supporting the sidechain communities and ensuring a thriving and prosperous environment for all participants.
Specification
Should this AIP be approved, the following changes will be implemented:
- Cross chain contracts deployed on mainnet
- The protocol DAO msig will call setBridgeDelegate on the Booster passing in the address of the newly deployed L1Coordinator
- Cross chain contracts deployed on Arbitrum.
- Transfer AURA from the treasury to Arbitrum and deposit into the following shared escrow
Code
Voting
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 deploying Aura’s cross chain system to Arbitrum and for the Aura Treasury to provide up to 1.5M AURA for liquidity on to an ARB/BAL/AURA pool held as POL by a shared escrow with Balancer.