Liquidity Layer

Project X

Auran’s first infrastructure product will be [Project X], creating a cross-chain liquidity layer between major Bitcoin L2s and Bitcoin L1 standards like Runes. This will solve liquidity fragmentation across the major Bitcoin ecosystems, and serve as core infrastructure for building the interoperability protocol for Bitcoin developers.

Auran token is backed by the native pools on each target network to ensure stability. Liquidity providers are also incentivized by the network for providing their liquidity in the pool. Similarly to Thorchain, these liquidity pools will be used as a base to establish the main built-in DeFi projects.

The network employs a dynamic reward system that adjusts based on the total amount of tokens staked, aiming to maintain optimal security levels. A decrease in staked tokens triggers an increase in reward ratios to incentivize network support, whereas an excess in staked tokens leads to reduced rewards and fees, maintaining economic balance.

Nodes contribute to the network's security by identifying and penalizing malicious actors, redistributing the malfeasors' stakes to honest participants, thereby promoting a self-regulating ecosystem.

Liquidity Pools

Swaps within the Auran network are facilitated through liquidity pools. These pools are aggregates of assets contributed by liquidity providers, with each pool comprising a pair of assets: one being a connected asset such as Bitcoin, and the other being the Auran token.

Rewards

Liquidity providers receive returns on the assets they contribute, derived from both fees and rewards. These fees are levied on individuals engaging in swaps and trading activities. Typically, swaps result in the asset ratios within the liquidity pool deviating from the prevailing market rates.

Deposits

On Auran, asset deposits are open and non-custodial, allowing liquidity providers to either suggest new asset pools or contribute to existing ones without requiring permission. Anyone can initiate a proposal for a new asset by depositing it. For further information, refer to the asset listing/delisting guidelines.

Withdrawals

Liquidity providers have the flexibility to retrieve their assets whenever they choose. Upon processing their withdrawal request, the network ensures that providers are allocated a percentage of the pool equivalent to their ownership stake, in addition to any earnings accrued from the assets. A network fee is applied each time assets are withdrawn from the network.

Swaps

Users are able to exchange any assets located on connected chains that have been integrated into the network. Auran autonomously oversees these swaps, operating under the regulations set by its state machine. It ensures that every swap detected is conclusively settled, sequenced, and executed. Swaps that do not meet the criteria are refunded, while valid exchanges are organized in a manner that is transparent and safeguards against front-running. Validators have no capacity to alter the sequence of transactions and face penalties if they neglect to recognize a legitimate swap.