[AIP-78] Orderly Protocol Wind-Down and Treasury Redemption for Aura

Authors: 0xMaha, Fry

Summary Following Balancer’s proposal to sunset the veBAL system, the foundational mechanism that Aura was built on top of is potentially being retired. This was a shock, but things have been moving in this direction for a while, and so we respect this definitive proposal and should it pass, believe it offers an opportunity for Aura stakeholders.

The economic conditions underpinning veBAL have been deteriorating for some time, to a point where future yield for vlAURA is projected to be lower than the cost to operate the Aura protocol. Balancer’s choice to wind it down with some compensation and exit plan for lockers reflects an honest attempt at medium term value creation, it also signals that the internal intention is to continue moving away from this system at a mi