[AIP-68] Increase access to vlAURA through native deployment on Base

Authors

Maha, 0xRichter

Summary

This proposal unlocks value and reduces barrier to entry of vlAURA by building a native presence on Base, positioning to increase holder count, access to upcoming HYPER incentives, and market exposure to Balancer technology. A big value here is increasing awareness of Aura’s franchise and reducing the barrier to entry to qualify for any airdrop allocations.

This will be achieved by the deployment of the Aura Locker (vlAURA) on Base, along with the seeding of AURA liquidity and the enabling of auraBAL staking. Currently, Aura’s Base deployment supports depositing of BPTs and Bridging of AURA, this proposal seeks to create a feature set parallel to the Aura Mainnet experience.

To complete the experience for Base users, the groundwork will be laid for a custom app at base.aura.finance that again aims to mirror the mainnet experience by focussing the app around the specific network. This could theoretically be rolled out to other L2s if desired.

Proposal

vlAURA on Base

A version of vlAURA will be deployed on Base, allowing users to lock up AURA as normal. This vlAURA contract will be added as a secondary strategy on both Aura’s snapshot spaces, allowing Base-vlAURA holders to vote and receive rewards as cheaper alternative to locking on mainnet.

As for the rewards, HH will take into account any votes cast from Base however the initial implementation will see voting rewards continue to be distributed to users on the chain they were placed (due to the lack of bridges for all tokens). Through a delegation to Paladin, users will be able to receive voting rewards directly as USDC on Base. If the user wishes to vote for a different pool they still have that option.

This will be enabled for the voting round beginning after any successful AIP resolution.

AURA Liquidity

An E-CLP will be created on Base via Gyroscope, and 15k AURA per week will be added as extra incentives for 16 weeks which should create sufficient liquidity depth for Base. AURA will be enabled on dex aggregators on Base (1inch). Prospective ECLP layout is here, ECLP 2.

Theming and UX/feature parity with mainnet

Aura app needs to become more cohesive for L2 users, and so a chain specific theming strategy will be put in place, potentially utilising sub-domains like base.aura.finance to make the app native to each chain. This AIP is the first step towards achieving that and the framework will be laid out.

Motivation

The decision to expand capabilities on the Base network is driven by several key factors:

  1. Airdrop Accessibility: With an upcoming airdrop of 11% of HYPER to vlAURA holders, it makes sense to make locking as accessible as possible in order for users to participate in the airdrop as efficiently as possible.
  2. Cost Efficiency: Base offers significantly lower network fees compared to Ethereum mainnet, making it more cost-effective for users to lock their AURA.
  3. Transaction Speed: Faster transaction times on Base enhance the user experience and operational efficiency.
  4. User Acquisition: Base’s association with Coinbase presents a unique opportunity to attract and onboard new users to Aura Finance with a lower barrier to entry.

Audits & Testing

This AIP deploys existing contracts (auraBAL, vlAURA) on a new network and thus new audits are not needed. Aura prioritizes security above all else - read about the security practises here.

Technical specification

Should this AIP be approved, the following changes will be implemented:

  1. Deployment of Locking and Staking Contracts: The necessary smart contracts on the Base network will be deployed to enable locking of AURA tokens and staking of AuraBAL tokens.
  2. Modification of Snapshot Strategies: Both Snapshot strategies will be modified to add Base-vlAURA as a secondary source of voting power.
  3. AURA Liquidity Incentives: The E-CLP will be deployed and funded with incentives.
3 Likes

great proposal - you have my full support :slight_smile:

1 Like

Super excited to see Aura being fully accessible from the L2verse!

I think this is a great proposal. BASE is going to be the direct onboarding method for Coinbase users, so having vlAURA natively deployed there will open up the Aura/Balancer incentive flywheel to a whole new generation of users.

Bullish.

1 Like

Let’s go. Sounds like a good plan that will bring us closer to the users we want to reach.

1 Like

This is great news! Having a multichain AURA (and vlAURA) will enhance its use case and make it more visible to a broader audience.

1 Like

I am in full support of this proposal. I also really like the approach of deploying the locker contract while leaving the AURA token untouched (no baseAURA token). In that way you create native AURA token demand on that chain.

As mentioned in the other proposal, I am just a bit hesitant about deploying liquidity in an E-CLP. There is not much use-cases out there yet for gov-token Gyro liquidity. It would be interesting to outline the advantages compared to a classical 80/20 pool. The E-CLP layout assumes quite a tight range around the current price levels. I am not so sure how it will behave if AURA price appreciates much and how the token distribution will look like beyond $1.5.

1 Like

The advantages are that it requires far less TVL to create liquidity depth and thus we will get deeper liquidity around the current price range, could increase the distro and go for ECLP3 though if we wanted to blunt it. Need to confirm that the liquidity continues past the limits of the x-axis on this diagram though

Edit: Yes the liquidity can continue past those limits

1 Like

This proposal is great.

https://vote.aura.finance/#/proposal/0xe4e592a04e3cc166f3d5e6b1310bd2ac5169a529b88afcd1b99f7f8c3b5bb482