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Aura Finance

Fully composable liquidity transport protocol

What is Aura Finance

Aura Finance is a blockchain decentralized finance (DeFi) protocol based on the more popular Balancer protocol designed to maximize returns for crypto investors within the latter’s ecosystem. The project was launched in June 2022 with the intent of introducing to Balancer what Convex Finance did to the Curve DeFi network.

Aura networks offer their community members the chance to earn passive income through yield farming opportunities. Investors have the option of contributing to liquidity pools within decentralized exchanges (DEXes) and are thus rewarded for their efforts. Additionally, they could engage in staking native tokens also for passive rewards

How Aura Finance Works

Aura Finance was created to take advantage of the vote-escrowed (ve) token phenomenon growing in popularity within the DeFi space. The ‘ve’ tokens are instrumental in governance, and they work by incentivizing holders to lock theirs for longer periods, thus giving them more voting power. First introduced by Curve Finance to better align incentives between liquidity providers and governance participants Aura Finance has, however, not only launched auraBAL but so far, there are three derivatives existing within its ecosystem These are:

  • AURA – a utility token on the Aura Finance platform used to distribute rewards earned from Balancer
  • auraBAL – the token issued on a 1:1 basis against veBAL staked by Aura Finance on behalf of its users;
  • vlAURA (‘vote locked’ AURA) – are AURA tokens locked within the protocol to enable the holder to vote on governance decisions within the platform
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