How DAOs Are Capitalizing On Aura Finance To Maximize Balancer Voting Rights
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Some of the crypto sphere's biggest decentralized autonomous organizations are looking for ways to optimize the liquidity of their native tokens, and they're increasingly turning to the Aura Finance protocol on Balancer to do just that.
Aura Finance is a complex DeFi protocol that enables DAOs to optimize liquidity for their own tokens or other liquidity pairs they're interested in directing rewards to. In addition, they can utilize Aura to influence the direction of rewards to other projects they may benefit from.
By integrating with Hidden Hand, Aura enables DAOs to deploy voting incentives on the liquidity pools they wish to route BAL and AURA rewards to, at a cost-effective rate. In this way, they can magnify the liquidity and yield of those pools.
DAOs including Olympus, Lido and Gnosis have already directed millions of dollars' worth of tokens into Balancer, a popular DeFi ecosystem that encompasses an automated market maker (AMM), decentralized exchange, and liquidity platform. At the same time, those DAOs have focused on passing proposals that accumulate "vote escrowed BAL" tokens, while looking to partner with other protocols and tokens in order to deepen their yields from veBAL.
It's a scramble for control of the Balancer ecosystem that has been dubbed the "Balancer wars", in comparison to a similar tussle that ignited in the Curve DeFi ecosystem in 2021. With the Balancer Wars, multiple crypto protocols are vying to influence the ecosystem so as to bring additional benefits to their own projects, leading to a scramble to accumulate more BAL. These benefits include being able to vote on key decisions, such
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