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jAURA vs. wjAURA

jAURA

Strategy

As described above, jAURA is a non-tokenized auto compounding strategy for AURA that will compound more vlAURA into your deposit position over time. jAURA also receives automated bribes from Redacted Cartel’s Hidden Hand.
Deposited tokens are not composable and must remain inside the jAURA strategy vault until we reach an unlock period.
Unlock periods come every two weeks. More info on this can be found here.

Yield

jAURA yield is derived from auto-compounding and automated bribes. It is not subject to liquidity incentives, unlike its tokenized counterpart wjAURA, so has a higher base yield.

wjAURA

Strategy

Fundamentally, the wjAURA strategy is quite different from the standard jAURA strategy.
There are two main reasons for this:
  1. 1.
    It delivers liquidity incentives to Hidden Hand
  2. 2.
    It is fully composable, with the ability to be used by 3rd party protocols
In this way, wjAURA ends up having tradeoffs that make a much different experience than jAURA.
It is more composable, meaning that some partners such as Balancer or Aura can build LP mechanisms and vaults which provide user benefits such as boosted yield. But the base yield is diminished because wjAURA delivers liquidity incentives to Hidden Hand.

Yield

We already went over the fact that wjAURA’s base yield will differ from jAURA’s since wjAURA provides liquidity incentives for bribes. However, wjAURA exists for a whole different purpose.
For wjAURA holders, composability is key.
This token has a highly efficient yield infrastructure built behind it. Working hand-in-hand with Balancer and Aura, Jones has created an 80-20 Balancer pool that keeps wjAURA liquid and helps users boost yield.
This boosted yield may make you whole when compared to the yield tradeoff, or in some cases reward you with more than you would have sacrificed by using the liquid token version.
The secondary APY shown on the frontend of Jones, highlighted in purple, represents 80% of the wjAURA / WETH 80-20 Balancer Pool token yield when staked on Aura. This way, the only yield figures we show on the front end are from wjAURA.
Head to the LP Strategy Guide to learn how to gain access to this yield.

Rewards Collection & Distribution

Voting Incentives

Thanks to Hidden Hand, the management of voting incentives has become automatic.
  • Users no longer experience the hassle of deciding which protocol to delegate votes to.
  • Hidden Hand is the best tool for vote incentive optimization.
Every voting round, the voting engine will optimize votes to achieve the maximum yield, sell any rewards collected except for AURA, and distribute tokens per the waterfall distribution system outlined below.
Here is the equation for determining bribe amounts (only applicable to wjAURA):
bribe=(pool/total)∗0.25bribe = (pool / total) * 0.25
Where:
bribe = The total vote incentive amount
pool = wjAURA in the pool
total = total wjAURA

Auto-Compounding

Auto-compounding is the main perk for depositors using non-tokenized jAURA.
After the 2 week long vote rounds occur, all rewards collected (including Balancer gauge rewards) are auto-compounded to enhance token yields for depositors.

Waterfall Distribution

Rewards will have a staggered system in place, with a hierarchy dictating their flow. All rewards received are immediately converted to AURA.
After rewards are collected, they are distributed in the following order:
  1. 1.
    Protocol Incentives: A portion of the tokens accrued by the protocol will be distributed between the Jones treasury and Aura treasury. This guarantees both the sustainability of the jAURA strategy and the growth of the Aura ecosystem as a whole. For further details, check the Incentives section of this documentation.
  2. 2.
    Liquidity Incentives: A portion of the tokens accrued by the protocol is then used as incentives for the liquidity pool through vote incentives on Hidden Hand. This only affects the wjAURA users. The amount will be defined by the following equation: (LSD jAURA In Pool) / (Total LSD jAURA) * 25% = Reward Incentive
  3. 3.
    Withdrawal Queue: If needed, any remaining tokens will be converted in AURA and fed into a unified queue for users who have previously requested withdrawal & burned their tokens. This step can be conditional based on withdrawal requests.
  4. 4.
    Vault Yield: A portion of the tokens accrued by the protocol will be converted in AURA and accrued proportionally to users auto compounding positions and locked for more vlAURA.

Reward Split

Rewards are split in the following way for jAURA:
  • AuraBAL is converted to AURA and compounded into the vault.
  • Voting incentives are converted to AURA and compounded into the vault.
  • A 6.949% incentive will be retained, of which 90% goes to the Jones Treasury & 10% to the Aura Protocol Treasury.
Rewards are splitted in the following way for wjAURA:
  • AuraBAL is converted to AURA and compounded into the vault.
  • Voting incentives are converted to AURA and compounded into the vault.
  • A 6.949% incentive will be retained, of which 90% goes to the Jones Treasury & 10% goes to the Aura Protocol Treasury.
  • A further 10% of the yield is retained and automatically used as voting incentives for the wjAURA - ETH Aura Pool.