Proposal to relaunch Aura Fed

Proposal to relaunch Aura Fed

Background and Summary

The Aura Fed was originally launched via a proposal that was executed on November 7th 2022. To date, this Fed has operated profitably, with $1.8MM deployed to the DOLA-bb-a-USD pool on Aura, currently earning AURA/BAL rewards at an APR of 24.35%, equivalent to $8.4k per week. For more details on Aura Fed v1, including deployment parameters, please review Proposal 71, linked here.

Aura has recently announced it will need to migrate all vault contracts to new ones to deal with a non-critical bug, and in doing so will be deprecating current vaults, including our DOLA/bb-a-USD vault. Note: The LP on Balancer is unaffected. Due to migration by the Aura team, our Fed liquidity will soon stop earning rewards.

This proposal aims to redeploy the Aura Fed, pointing at the new rewards contract, so it can start earning AURA/BAL rewards. The new Aura Fed will need to be given DOLA minting rights in order to do this. The v1 Aura Fed will be fully contracted as part of the liquidity migration, and DOLA minting rights will be removed as it is no longer needed.

We have taken this opportunity to add an additional security upgrade to the AURA Fed. A privileged role (adjustable by gov) to adjust maxLossWithdrawBps will be given to the RWG Multisig via the guardian role. Along with gov, the RWG Multisig will therefore be able to make changes to the maxLoss parameter. This means in situations where decisive action to contract the new Aura Fed needs to be taken quickly, the RWG can step in to adjust the current maxLossWithdrawBps if set too low, and in doing so can bypass the 5-day delay of gov intervention.

On-Chain Actions:

  • Add AURA Fed v2 as a DOLA minter
  • Remove AURA Fed v1 as a DOLA minter