General
Aura Finance is a DeFi protocol built on top of Balancer that maximizes yield and governance power for BAL token holders. It works by allowing users to convert their BAL or 80BAL-20WETH tokens into auraBAL, which is then staked to earn boosted rewards.
The protocol aggregates voting power from locked BAL (veBAL) across the Balancer ecosystem, distributing enhanced emissions to liquidity providers who stake through Aura Finance. This means users can access boosted APYs on Balancer pools without having to lock BAL themselves.
auraBAL is Aura Finance's liquid staking token representing staked BAL on the Balancer platform. To get auraBAL, you can:
- Convert BAL tokens directly on the Aura Finance app
- Convert 80BAL-20WETH BPT (Balancer Pool Tokens) into auraBAL
- Buy auraBAL directly on a DEX if a secondary market exists
Once you hold auraBAL, you can stake it in the Aura Finance protocol to earn rewards from BAL emissions, AURA token incentives, and platform fees — typically at higher APYs than staking veBAL directly.
Note: auraBAL is a one-way conversion — you cannot convert auraBAL back to BAL directly through the protocol. However, you may be able to swap it on secondary markets.
The AURA token is the native governance token of the Aura Finance protocol. It plays several key roles:
- Governance: AURA holders who lock their tokens receive vlAURA (vote-locked AURA), granting them the right to vote on Balancer gauge weight allocations and Aura Finance protocol governance proposals.
- Incentives: AURA is distributed as an additional reward to liquidity providers who stake Balancer Pool Tokens (BPTs) through Aura Finance.
- Protocol fees: A portion of protocol fees may be distributed to vlAURA holders, aligning incentives between token holders and the protocol.
AURA has a fixed maximum supply and is minted according to a schedule tied to BAL emissions captured by the protocol.
Aura Finance aggregates a large amount of veBAL voting power, which Balancer uses to boost BAL emissions for liquidity providers. When you stake your Balancer Pool Tokens (BPTs) through Aura Finance instead of directly on Balancer, you benefit from the protocol's collective veBAL boost.
On Balancer, the maximum boost for any individual is 2.5x, but achieving this requires a large personal veBAL balance relative to your liquidity position. Aura Finance allows smaller holders to receive near-maximum boosts by pooling veBAL together. Additionally, stakers receive AURA tokens on top of the boosted BAL emissions, further increasing their effective APY.
vlAURA (vote-locked AURA) is obtained by locking your AURA tokens in the Aura Finance protocol for a fixed period. Key details:
- Lock duration: AURA is locked for 16 weeks (approximately 4 months) on a rolling basis.
- Voting power: vlAURA holders vote on Balancer gauge weights — determining which pools receive BAL emissions — as well as Aura Finance governance decisions.
- Incentives: vlAURA holders earn a share of protocol revenue, including fees collected from the Balancer ecosystem.
- Re-locking: You can re-lock your AURA at any time before the lock expires to maintain continuous voting power.
If you do not re-lock or withdraw after expiry, your tokens remain in a "unlockable" state until you claim them — they do not earn rewards during this period.
Aura Finance is a multichain protocol that supports Balancer deployments across several networks, including:
- Ethereum Mainnet — the primary network for auraBAL staking and AURA locking
- Arbitrum One — Layer 2 with lower fees and fast transactions
- Polygon — popular EVM sidechain with high liquidity
- Optimism (OP Mainnet) — Ethereum Layer 2 rollup
- Gnosis Chain — formerly xDai, community-focused chain
- Base — Coinbase's Ethereum L2
- Avalanche — high-throughput alternative L1
Bridging support is available within the Aura Finance app to move assets between supported networks.
Aura Finance charges a performance fee on the BAL rewards earned by liquidity providers staking through the protocol. The fee structure is designed to be transparent:
- A percentage of BAL rewards is retained by the protocol as a performance fee.
- A portion of these fees is distributed to vlAURA holders (lockers) as a reward for providing governance and security to the system.
- Another portion may go to the Aura Finance DAO treasury to fund ongoing development and operations.
The exact fee percentages are governed by vlAURA holders and can be adjusted through governance proposals. Always check the current parameters on the official Aura Finance app or documentation before depositing.
Aura Finance uses novel technology, and as with all DeFi protocols, there are inherent risks to be aware of:
- Smart contract risk: Despite audits, no smart contract can be guaranteed bug-free. Aura Finance contracts have been audited by reputable firms.
- Liquidity risk: auraBAL cannot be directly redeemed for BAL. If secondary market liquidity is thin, you may not be able to exit at par.
- Balancer dependency risk: Aura Finance is built on Balancer. Any issues with Balancer protocol contracts could affect Aura Finance.
- Governance risk: Protocol parameters are controlled by vlAURA governance. Decisions may not always align with individual user interests.
- Lock-up risk: AURA locked as vlAURA is subject to a 16-week lock-up period.
Always do your own research and only invest what you can afford to lose. You can review Aura Finance's security documentation and audits on the official docs site.
Participating in Aura Finance governance is open to all vlAURA holders. The process works as follows:
- Acquire AURA: Buy or earn AURA tokens through liquidity mining on the Aura Finance platform.
- Lock AURA: Lock your AURA in the Aura Finance app to receive vlAURA tokens, which represent your voting power.
- Vote on gauge weights: Every two weeks (aligned with Balancer's voting cycles), cast your votes to direct BAL emissions toward specific Balancer pools.
- Vote on governance proposals: Participate in Aura Finance DAO proposals via Snapshot or on-chain governance mechanisms.
- Join the Forum and Discord: Engage in community discussions, propose changes, and stay informed about upcoming votes.
Your vlAURA voting power is proportional to the amount of AURA you have locked. More AURA locked means greater influence over protocol decisions.
Claiming rewards on Aura Finance is straightforward:
- Connect your wallet to the Aura Finance app at https://aurafinance.net.
- Navigate to the Claim section in the top navigation menu.
- You will see all pending rewards across your staked positions and locked AURA.
- Click Claim All or claim individual rewards as preferred.
- Confirm the transaction in your wallet.
Rewards accumulate continuously and can be claimed at any time. Note that each claim transaction will incur gas fees, so it may be more economical to claim less frequently if you have smaller reward amounts. Rewards may include BAL, AURA, and other incentive tokens depending on the pools you are participating in.
There are two main ways to earn yield on Aura Finance, each serving a different purpose:
- Staking Balancer Pool Tokens (BPTs): You provide liquidity to a Balancer pool (e.g., WETH/AURA, USDC/DAI, wstETH/WETH), receive BPTs in return, and then stake those BPTs on Aura Finance to earn boosted BAL emissions plus AURA rewards. This is standard yield farming with additional token exposure from the underlying pool assets.
- Staking auraBAL: You convert BAL or 80BAL-20WETH BPTs into auraBAL and stake it. This earns rewards from Aura Finance's share of Balancer platform fees and gauge incentives, with exposure primarily to BAL price movements. This is suitable for users who want BAL exposure with enhanced yield and no impermanent loss risk from multi-asset pools.
Both strategies can be combined for a diversified DeFi yield approach within the Aura Finance ecosystem.