kaiAura-Aura v3 Stable Pool & Upcoming Balancer Gauge

🔗 Pool Link: Balancer Pool

🗳 Vote Here: Snapshot Proposal

Community Feedback & Enhancements

The initial kaiAura-Aura pool was designed with a strong price peg mechanism, ensuring a stable 1:1 ratio. However, community feedback, whales in particular, have highlighted that the conversion process led to higher price impact, limiting the ability of larger participants to enter or exit efficiently. While this mechanism effectively maintained the peg, it also limited some of the the protocol’s growth due to reduced capital flexibility.

Introducing a v3 Stable Pool

To maintain the strong peg while enabling larger transactions with minimal price impact, we are introducing the kaiAura-Aura v3 Stable Pool alongside the existing kaiAura-Aura v2 Volatile Pool. These pools will work in tandem to optimize liquidity provision and trading efficiency.

For optimal execution, traders are encouraged to use aggregators such as Odos or the Balancer UI to ensure trade routing through both pools, particularly for larger transactions.

TLDR:

• Stable Pool for Efficient Swaps: More capital-efficient trades at scale, with lower price impact.

• Volatile Pool for Deep Liquidity: Continued incentivizing for liquidity in the volatile pool to ensure market depth and visibility.

• Trade Optimization: The stable pool will generally offer better execution until a certain threshold, beyond which trades will naturally pull from the volatile pool.