Aura BALPrice

(AURABAL)

AuraBAL is a liquid wrapper token obtained by locking the 80BAL20ETH Balancer Pool Token (BPT) on Aura Finance. It grants users exposure to veBAL yield without requiring them to lock their BPT for an extended period. This tokenized veBAL is issued at a 1:1 ratio and can be traded. The underlying BPT is locked by the Aura protocol for the maximum duration in Balancer Voting Escrow, enabling the Aura system to leverage its aggregated voting power to boost rewards and influence gauge votes.

Once minted, AuraBAL offers several use cases. It can be staked or auto-compounded to earn 20.5% of all BAL revenue generated by Liquidity Providers (LPs) on Aura, in addition to veBAL fees and supplementary AURA tokens. Alternatively, AuraBAL can be used in the auraBAL Stable Pool (auraBAL/80BAL20ETH) on Balancer and subsequently staked in the corresponding Aura pool. Staking AuraBAL provides rewards in AURA, BAL, and bb-a-usd, offering a diversified income stream and efficient access to veBAL benefits.

Rewards for AuraBAL typically originate from protocol emissions and, in some cases, a portion of protocol fees. The distribution, or emissions process, usually occurs on a continuous, per-block or per-epoch basis. Earnings are updated block by block in real-time. Users may sometimes need to manually call a 'harvest' function to claim and dispense their accumulated rewards, ensuring they receive their entitlements from the protocol's operations.

The ability to unstake AuraBAL depends on whether a lock-up period was chosen during the initial staking process. If a specific lock duration is selected, the AuraBAL will remain illiquid and inaccessible until that predetermined period concludes. Conversely, stakes that are not subject to a chosen lock-up period can generally be withdrawn at any time. However, it is important to note that a cooldown period might sometimes apply before the withdrawal becomes fully available.

Web3 is envisioned as a decentralized, trustless, and user-owned internet, representing a significant departure from Web2, where large technology companies control data and services. It relies on blockchain technology to distribute control across a network, allowing users to directly own assets via digital wallets. Web3 applications differ from Web2 applications by being decentralized, meaning they are not controlled by a single entity. They are also transparent, with all transactions publicly visible and auditable on the blockchain, which enhances their resistance to censorship and hacking.

Tokenomics describes a token's economic model, including its supply (whether fixed or inflationary), its utility (e.g., for governance, payments, access, or staking), the incentives it offers to users, and its distribution among the team, investors, and community. A well-designed tokenomics model is essential for driving the ecosystem's usage, fostering user engagement, enabling effective governance by token holders, and ensuring the project's sustained growth and long-term viability by aligning incentives and creating value within the decentralized network.