PR with Payload
Enable Gauge for kaiAURA / AURA (Ethereum)
Summary
This proposal requests the approval of a gauge for the kaiAURA / AURA pool on Ethereum. The pool aims to enhance liquidity and yield opportunities for AURA holders while supporting kai’s mission of amplified DeFi rewards.
Pool Details
- Pool: Liquidity Pool (v2): kaiAURA / AURA
- Pool Contract:
0x62e57e37e3185871c13a422a363293780d17305b - Gauge Address (Ethereum):
0x4fd03b8c15e70e6b3413e4d2ff3825a19746e78b
References/Useful Links
- Website: kaiAura.finance
- Documentation: kai Docs
- Communities: Discord | X
- Dapp: app.kaiAura.finance
- Dune Dashboard: kaiAURA Analytics
Protocol Description
- AURA: The governance token of Aura Finance, designed to maximize rewards for liquidity providers and veBAL stakers. AURA holders can lock tokens into vlAURA to earn rewards and participate in governance.
- kaiAURA: A tokenized wrapper of AURA created by kai to amplify staking rewards. Staked kaiAURA receives enhanced yield opportunities.
kai DAO is a DeFi protocol designed to optimize and amplify rewards for AURA stakers. By converting AURA into kaiAURA, users access enhanced yield opportunities, including real-time USDC payouts, additional rewards (e.g., Aura, Pal, WETH), and governance participation via the $KAI token. Shortly after launch, kai achieved a position as a top 27 vlAura holder with over $440k TVL, demonstrating significant community interest and growth potential.
Motivation
The kaiAURA / AURA gauge is strategically important for several reasons:
- Voting Incentives: kai has allocated 15,000 USDC for bribe emissions over the first three months for Paladin Quest voting. If the community allocates this, kai could become one of the top 8 apps for historical voting incentives.
- Support AURA Holders: This pool offers AURA holders access to kai’s amplified yield opportunities, including real-time rewards, governance utility, and new staking options.
- Strengthen Balancer Liquidity: Pairing kaiAURA with AURA increases Balancer’s TVL and trading volume, generating additional fees for the protocol treasury.
- Boost Ecosystem Collaboration: Balancer benefits from kai’s integrations, improving liquidity efficiency and attracting new users.
- Enable Sustainable Growth: Encourages broader adoption of kaiAURA and AURA, fostering a virtuous cycle of increased liquidity, yield, and governance participation.
This proposal benefits all stakeholders by strengthening interconnected ecosystems, enhancing liquidity, and maximizing yield opportunities.
Specifications
Governance
- Governed by kai DAO with community-driven initiatives.
- kaiDAO Address: 0x4696b1123f4c6a03711e2c6e8311350b0350d7c2
Oracles
- No external oracles are required.
Audits
- Open Source Code: GitHub
- Currently unaudited, with plans for auditing in Phase III.
- Built on Aura contracts with minimal modifications to enhance user rewards.
Centralization Vectors
- Non-custodial and decentralized, with strong community engagement and collaboration with ecosystem partners.
- Three early contributors and a total of seven contributors.
Market History
- Staking Rewards: kaiAURA stakers earn 2x the rewards of typical vlAura holders due to liquidity incentives and yield dynamics.
- Peg Management: The pool uses a volatile structure to maintain peg stability, avoiding issues associated with stable swap pools.
Value Proposition
The existence of kaiAura benefits the ecosystem in several ways. Users have additional functionality with Aura. Firstly, A user can convert Aura to kaiAura either 1:1 or (sometimes) market swap in for additional kaiAura and stake for amplified rewards, as not all kaiAura is staked. Also, additional Pal rewards because kai has acquired pal to stake for “Loot” from Paladin ecosystem partner. Plus kai emissions; Plus no lock-up, Plus no fees! As a liquidity provider of kaiAura-Aura a user gets the same price exposure (pure Aura price action) but yield is in the form of swap fees, gauge rewards, and kai emissions.
The kaiAURA / AURA pool benefits the ecosystem in several ways:
- Liquidity Hub: Serves as a key trading and liquidity center for AURA and kaiAURA.
- Protocol Revenue: Increases Balancer’s income via trading fees and liquidity mining.
- User Rewards: Combines AURA price exposure with swap fees, gauge rewards, and kai emissions.
- Ecosystem Growth: Strengthens DeFi collaboration and attracts new participants.
By combining kai’s innovative yield strategies, Aura’s governance framework, and Balancer’s robust infrastructure, this pool marks a significant advancement in DeFi liquidity management.
Special Note
The pool is a standard Balancer v2 pool with customizable fees. Initially, the fee is set at 1%, with the potential for adjustments to facilitate swap volume.
Gauge Details
- Gauge Address:
0x4fd03b8c15e70e6b3413e4d2ff3825a19746e78b - Gauge Type: Ethereum
We invite the Balancer community to review and support this proposal. Feedback and discussions are welcome to refine and enhance this submission. Thank you!