Summary
This is a proposal to enable a Balancer gauge for the 80% jAURA - 20% ETH pool on Ethereum Mainnet. jAURA is an auto-compounding wrapper token of the low-cost, partner-focused, vlAURA token.
As Aura launches on the Arbitrum Network, we will be using this pool to foster a familiar model that allows for ease of use and high adoption rate of both Balancer and Aura on Arbitrum. In a similar way, we plan on building upon the Balancer and Aura ecosystems through MetaVaults and other future integrations.
This strategy was co-developed alongside Redacted Cartel’s Hidden Hand, with mentorship from Aura and Balancer. Special thank you’s to: Lamentations, Json, Sami, Solarcurve and Maha for helping us through ideation and finding equity with the Aura, Balancer, and Redacted communities.
jAURA provides, what we think, is a community service through its super efficient gas and retention structure as well as rebating back to the AURA team to help fund their ecosystem. Every single user who utilizes jAURA supports the AURA team.
Protocol Description
Jones DAO is a yield strategy, and liquidity protocol with vaults that enable 1-click access to DeFi tools. These strategies unlock liquidity and capital efficiency through yield-bearing tokens.
Previously, Jones was focused solely on bringing users interested in Decentralized Options a simple, auto-pilot solution. The protocol has now expanded our focus, and explores many areas of yield generation, including Balancer & Aura.
Motivation
Jones DAO believes that a Jones <> Aura strategy resulting from our partnership should be viewed as a public good. As such we have streamlined retention, delegated as much voting away as possible, and kept our incentives aligned with what we believe is a best-in-class DEX; Balancer. Alongside that, Jones plans to tithe the Aura Protocol with 0.69420% of the revenue generated by the strategy, which will go back into sustaining the Aura ecosystem. Increasing those revenues through providing boosted $BAL rewards further increases the support we can give to the Balancer ecosystem.
By delegating to Redacted Finance’s Hidden Hand program, jAURA also automatically & efficiently collects Aura gauge voting incentives. We want to make sure that users and the community know that incentives will always align with the Balancer and Aura ecosystems.
As such, our strategy minimizes what is needed to vote for this proposed pool to ensure that depositors in the LP have adequate incentives while not overbribing or attaching our $JONES token to the emissions - this is a public good in the first order and its important to underline this as the motivator.
Another very important part of the partnership is that we have chosen our LP as a direct competitor to Aura’s own AURA/ETH LP which, if as popular as we hope it will be, means less bribes will be necessary from the AURA team leading to slower inflation. A net benefit for ALL AURA holders.
Specifications
Governance:
Jones DAO is currently governed by a core multi-sig and will transition some of that governance to veJONES holders when that launches in Summer ‘23.
Oracles:
Github: GitHub - Jones-DAO/jaura-oracle
Audits:
The strategy has undergone internal testing using previously deployed code from our partners.
It has also received multiple rounds of Audit review from Solidity Finance.
Review here:
Centralization Vectors:
The jAURA strategy will be run through smart contract interactions to be initiated or paused by the Jones multisig. As such there will be some governance control we retain however we have agreed to work with Aura in making the best decisions for the community.
Market History:
The Jones protocol has been live since February 2022. We focus on real-yield strategies involving options, arbitrage, leverage, which results in vaults that are both unique and successful.
To date, we support 7 different tokens across several different strategies and as of writing, almost $40MM in TVL - Jones DAO - DefiLlama
Value:
If Balancer enables this gauge, we can expect this pool to provide exit liquidity at a reasonable cost to jAURA LP/Lockers which will be the first in a line of transparent legos for folks who want to participate in the growth of Balancer and Aura without the associated inconvenience of manually claiming and staking rewards.
In the future, this strategy can also be put in place on Arbitrum.
We will also be funneling revenue back to Aura, allowing them to help the Balancer ecosystem flourish and avoiding dilution events like capital raises.
Contract:
jAURA: 0x198d7387Fa97A73F05b8578CdEFf8F2A1f34Cd1F
jAURA - ETH Balancer Pool: Balancer
10% capped gauge: 0x2D42910D826e5500579D121596E98A6eb33C0a1b
Transaction: The DAO Multisig 0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f will interact with the AuthorizerAdaptor at 0x8F42aDBbA1B16EaAE3BB5754915E0D06059aDd75 and call performAction with the GaugeController at 0xC128468b7Ce63eA702C1f104D55A2566b13D3ABD for the target(address) argument and using 0x3a04f900 followed by the gauge address 0x2D42910D826e5500579D121596E98A6eb33C0a1b and the corresponding gauge type for the data(bytes) argument.
data(bytes) : 0x3a04f9000000000000000000000000002d42910d826e5500579d121596e98a6eb33c0a1b0000000000000000000000000000000000000000000000000000000000000002
Important Links:
dAPP: https://www.jonesdao.io/
Twitter: https://twitter.com/JonesDAO_io
Discord: Jones DAO
Author: Jones Team