Resonate Support for Aura Finance
Resonate Support for Aura Finance, a protocol that provides maximum incentives to Balancer liquidity providers and BAL stakers.
Resonate will be using Aura as a provider for the yield farms whose positions may be split through their system into their constituent principal and interest components. Their in-house solution for pricing Balancer Pool Tokens (BPTs), with arbitrary weights, will have a direct application here. They’ll have a separate article exploring this innovation in the near future, along with how they plug into Aura’s native ERC-4626 system. As Resonate announces its Support for Aura Finance.
Resonate brings together parties with different time frame preferences (long term or short term) and facilitates a mutually beneficial exchange. These are known as Issuers and Purchasers. Issuers are parties that want to sell their future interest rights for an up-front payment. Purchasers are parties that want to buy the interest rights of someone else’s locked principal for an up-front payment.
So why is this useful?
- Align incentives: offer upfront incentives to tame mercenary capital and create positive-feedback loops. Leverage Resonate to lock-in liquidity providers, creating benevolent cycles within your ecosystem, all while stabilizing levels of liquidity.
- Regenerate your treasury: pay upfront to secure long term income. Utilize Resonate to replenish your native token, or perform a synthetic swap and diversify your holdings.
- Reduce your emissions: decrease your burn rate by paying out upfront. Incentivise lockups to offset your existing emissions schedule and reduce sell pressure.
- Leverage your stablecoin farming without liquidation risk: multiply the earning power of your stables by utilizing the leased capital of Issuers.
Using Resonate, we’re able to separate the principal and interest components of a position by issuing two FNFTs; one containing the principal and the other containing the rights to future interest on that principal. Resonate facilitates the commerce of the rights to future interest by matching issuers (who want to sell their interest rights for a one-time upfront payment), and purchasers (who want to buy the rights to future interest for a one-time upfront payment).
About Revest Finance
The Revest Protocol offers a revolutionary new use of NFTs as financial tools through the Financial Non-Fungible Token (FNFT). Individual and enterprise-level users can deposit any ERC-20 or ERC-721 into Revest’s interactive FNFTs and set custom unlocking conditions (time, value, or contract-based). Revest allows the tokenization of all non-fungible financial positions with non-fungible tokens. This simple turn-key solution offers elegant applications ranging from token vesting to cutting-edge implications for derivative and borrowing/lending platforms.
About Aura Finance
Aura Finance is a protocol built on top of the Balancer system to provide maximum incentives to Balancer liquidity providers and
BAL stakers (into
veBAL) through social aggregation of
BAL deposits and Aura’s native token. For
BAL stakers, Aura provides a seamless onboarding process to
veBAL, by creating a tokenised wrapper token called
auraBAL that represents the
80/20 BPT locked up for the maximum time in VotingEscrow.