Auran Token

Utility and explanation of Auran Token

Liquidity Incentives

Security within the Auran protocol is fortified through node participation, where nodes stake Auran tokens as a commitment to the network's integrity. The total value locked (TVL) across the network is optimally maintained at twice the amount of Auran tokens staked, ensuring balanced operational efficiency. The allocation of nodes during each cycle is directly correlated to the project's TVL, enhancing the network's responsiveness and scalability.

Since the Auran token is pooled in a 50:50 ratio with external assets within its liquidity pools, fluctuations in the value of these external assets lead to corresponding adjustments in the Auran token quantity through arbitrage activities. While the unit value of the Auran token may remain constant, the quantity present in the pool varies. This mechanism ensures that the system maintains an accurate valuation of the assets it secures, adjusting the quantity of Auran tokens in its pools to reflect changes in asset value.

With an accurate valuation of the assets it is securing, the system can then leverage incentives to maintain the security of those assets.

Security

Auran nodes are required to post a bond as a prerequisite for participation. This bond serves a dual purpose: it not only assigns a node its voting privileges but also acts as collateral for the assets within the liquidity pools. In the event a node attempts asset theft, its bond is forfeited at a rate of 1.5 times the value of the assets involved, thereby compensating the affected pools. Furthermore, any misconduct by nodes leads to a reduction of their bond, a measure that guarantees dependable service by penalizing unreliable behavior.

Governance

The inclusion of new assets, support for additional networks, metaprotocols, or the integration of built-in applications within the main protocol pools is subject to a governance voting process. This procedure involves the participation of Auran token holders, ensuring that decisions are made democratically and reflect the consensus of the community.

Gas Expense Compensation

The network incurs gas expenses for both outgoing and internal transactions. Nodes have the autonomy to utilize native assets from the vaults to cover these gas costs. Subsequently, the network compensates the liquidity providers of the affected pools, reimbursing them with an amount equivalent to twice the gas expenses, denominated in Auran token. This mechanism ensures that the operational costs are effectively managed while maintaining the liquidity providers' interests.