Aura Finance is a decentralised finance (DeFi) protocol built on the Ethereum blockchain, designed to enhance the efficiency and profitability for liquidity providers and BAL stakeholders in the Balancer ecosystem. It aims to maximise rewards through the social aggregation of BAL deposits and utilises its native token, AURA, for governance and reward functions.
Aura Finance operates by leveraging the voting-escrowed BAL (veBAL) tokens within the Balancer ecosystem. Participants deposit BAL tokens to receive auraBAL, a tokenised wrapper, navigating the liquidity gauge system more effectively. The protocol aggregates user stakes to boost the impact of veBAL, thus optimising returns for liquidity providers. Additionally, Aura Finance's mechanism involves a set of audited smart contracts to ensure secure operations on the Ethereum blockchain.
Aura Finance launched in early June 2022 as a DeFi protocol on the Ethereum blockchain. It is a fork of the Convex system, adapted specifically for integration with the Balancer ecosystem. Though details about the founding team are not specified, the protocol's smart contracts have been reviewed and audited for security. Its development focuses on providing additional incentives and simplifying the user experience for participating in liquidity provision within the Balancer ecosystem.