What is Aura Finance (AURA)?
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🟢 The simple version
Plain English — no jargon. Start here.
Aura Finance is to Balancer what Convex Finance is to Curve — it pools veBAL (vote-escrowed BAL) to give Balancer LP depositors maximum yield boosts without requiring them to lock BAL themselves, with AURA token holders earning protocol fees and a share of the Balancer Wars bribe income.
Balancer and the veBAL system
Balancer Finance is an Ethereum AMM protocol — similar to Uniswap but with weighted pools (e.g., 80% WBTC / 20% ETH) and other flexible pool types. BAL is Balancer's governance token, and locking BAL for up to 1 year gives veBAL — voting power to direct BAL emissions to specific Balancer pools (gauge weights). More veBAL = more emissions to your chosen pool = more rewards for LPs in that pool. This is the same veCRV dynamic that created the Curve Wars.
The "Balancer Wars" emerged: protocols with Balancer pools bribe veBAL holders to vote their pool's gauge weight higher. Aura Finance accumulates a large veBAL position (by locking BAL deposited by users) and lets AURA holders decide how to vote those accumulated veBAL positions — earning bribes from protocols wanting Aura's veBAL votes.
How Aura works
Deposit BAL → Aura locks it as veBAL and gives you auraBAL (a liquid representation of locked veBAL). Deposit Balancer LP tokens → Aura applies its pooled veBAL boost, increasing your BAL + AURA emissions. Lock AURA → earn: (1) protocol fees, (2) bribe income from protocols paying for Aura's veBAL votes, (3) additional BAL from Aura's rewards pool. The system mirrors Convex's architecture exactly, applied to Balancer instead of Curve.
Is AURA legal in India?
Yes. AURA qualifies as a Virtual Digital Asset (VDA) under Indian law. 30% tax on gains and 1% TDS applies. Always consult a tax professional.
🟡 A bit more detail
For when you want to go a little deeper.
Aura's position in the Balancer ecosystem
Aura has accumulated a significant percentage of all outstanding veBAL — making it the single largest veBAL holder and the kingmaker of the Balancer gauge voting system. Protocols wanting deep liquidity in their Balancer pools pay Aura voters (AURA lockers) to direct their pool's gauge weight. This "hidden hand" (bribe marketplace) dynamic creates real income for AURA lockers from protocols' liquidity budgets. Balancer's expansion to ve(3,3) dynamics and its weighted pool innovations give Aura a different income profile than Convex's Curve-focused model.
Aura vs Convex — comparison
Both are veToken accumulators with identical mechanics applied to different protocols. Convex is larger (Curve has more TVL than Balancer) and more established. Aura is smaller but benefits from Balancer's unique pool types (weighted pools, boosted pools, composable stable pools) that have DeFi use cases Curve's stablecoin-focused AMM doesn't cover. Balancer's B-tokens (Balancer pool tokens) are accepted as collateral in Aave v3, giving Aura-boosted positions additional capital efficiency.
Aura's entire value is derived from Balancer's success. If Balancer TVL declines or BAL emissions decrease, Aura's income base contracts proportionally. Always evaluate Balancer's health alongside AURA. Live data: CoinGecko
🟣 The full technical picture
For the technically curious.
Key facts
- Token: AURA (governance + fee-sharing)
- Function: veBAL accumulator for Balancer yield boosts
- Built on: Balancer Finance
- Analogy: Convex Finance for Balancer (identical model, different protocol)
- auraBAL: Liquid representation of Aura's locked veBAL
- Income sources: Protocol fees + Balancer bribe income
- Chain: Ethereum (primary) + Arbitrum
- vs Convex: Smaller (Balancer < Curve TVL) but Balancer's unique pool types
- AURA launch: 2022 (same year as Balancer veBAL launch)
veBAL gauge mechanics
Balancer's gauge system mirrors Curve's: each liquidity pool can have a "gauge" that receives BAL emissions. The amount of emissions each gauge receives is proportional to its gauge weight, which is determined by weekly veBAL votes. Aura's accumulated veBAL votes in these weekly snapshots, directing emissions to pools based on AURA governance decisions. Hidden Hand (a bribe marketplace) processes payments from protocols to Aura voters — if Uniswap wants BAL emissions in their WBTC/WETH Balancer pool, they pay AURA lockers via Hidden Hand to vote for their gauge. AURA lockers receive these bribe payments proportional to their voting power each week.