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One of the primary goals of the NEAR Foundation is to build a network that allows people to take control of their data, finances, and governance tools.

In the world of Web 3, this concept can be summed up in one word: “decentralization.” In this system, people gradually obtain the power and resources required to build and reimagine anything, from businesses to art.

The NEAR Foundation has made consistent progress toward this goal, as evidenced by the growing community of DAOs and validators.

NEAR, however, is not alone in its pursuit of this goal. This mission is dependent on projects within and around the ecosystem. This is where Aurora comes into play.

The Aurora Protocol was founded by a core group of NEAR developers, and it is now assisting in the establishment of connections with other ecosystems, as well as increasing adoption and decentralization in equal measure.

This article comprehensively explores the Aurora protocol and its operational mechanisms.

What is Aurora?

Aurora is a NEAR Protocol-based EVM and bridge. It provides a way for programmers to run their programs on a flexible Ethereum-compatible platform.

The network offers Layer 2 speed and scalability with Ethereum 1.0 development experience. The network’s capabilities are made possible because it is based on NEAR, a cutting-edge layer-1 blockchain with scalable and 2-3 second transaction finalization.

The Aurora Bridge also allows for the secure transfer of ETH and ERC20 tokens between Ethereum and Aurora.

How Does Aurora Work?

The Aurora ecosystem comprises the Aurora Engine, which is an Ethereum Virtual Machine (EVM), the Aurora Bridge, which allows ETH and ERC20 tokens to be transferred between Ethereum and Aurora, and the AuroraDAO, which independently runs the Aurora protocol.

ETH serves as Aurora’s base fee token. Aurora doesn’t charge any fees for bridge transfers. Users only pay the ETH miners’ fee once during an Ethereum blockchain transaction.

The Ethereum address will also serve as the Aurora wallet address. The Bridge helps users add Aurora as an extra network on MetaMask, which is required for transactions.

Trisolaris, the first AMM built using Aurora, has been launched. Users can use the AMM, in particular, and Aurora, in general, to exchange any ERC20 token, as well as provide liquidity for any ERC20 token and be paid for it.

The Aurora Protocol is autonomously governed by AuroraDAO. The holders vote on major decisions and issue instructions to subordinate entities on how to execute them. The image below includes a list of AuroraDAO’s “council” members.

The NEAR core development team aimed to build a smart contract that would allow free token exchange between Ethereum, NEAR, and other projects.

The team’s goal was to develop a technology that would allow assets to exist simultaneously on both NEAR and Ethereum. This would enable Web3 users to interact with multiple chains.

To accomplish this, the group needed to construct a decentralized bridge accessible to everyone, anywhere, at any time, without authorization.

The developers were able to construct the bridge, allowing anyone to transfer an Ethereum-based token (such as a stablecoin like DAI) to the NEAR network via the Rainbow Bridge.

NEAR’s core team members who worked on Rainbow Bridge split off to work on other projects. Aurora is one of the projects that resulted from this, and it now has the bridge as well as many other features that help build a global network of open-source Web3 projects.

Partnerships with Aurora

Several initiatives aiming to increase cross-chain accessibility have taken note of Aurora’s efforts and joined forces with it. An example is Allbridge, a program that connects dispersed blockchains through universal interoperability across all networks. After Allbridge collaborated with Aurora, a bridge was built between Aurora and Terra.

Aurora is also significantly impacting the development of decentralized finance (DeFi) products in the NEAR ecosystem. DeFi, which stands for peer-to-peer financial services established on public blockchains, is one of the busiest crypto industries on NEAR.

The NEAR community has been working tirelessly to make it easier for DeFi apps and utilities to benefit from the protocol’s developer-friendly features.

Due to Aurora’s exceptionally low fees, which it achieves by using the NEAR network, this procedure has become considerably smoother and more decentralized. Users often complain that the prices for Ethereum-based DeFi products are prohibitively high, making it difficult for developers and end users to participate and preventing Web3 from being widely used.

In response to the rapid growth of Aurora usage, the Aurora team created Aurorascan, Aurora’s version of Etherscan (the most well-known Ethereum block explorer and analytics platform). Aurorascan has all of the features and dependability of Etherscan, in addition to providing developers with the resources and information they need to understand how Aurora’s EVM works.

Aurora, however, goes beyond DeFi. The NEAR community’s NFT projects, which have grown in popularity since 2020, also rely heavily on the platform. Members of Chronicle, Endemic, and TENKBay (NFT platforms built on the Aurora EVM and NEAR Protocol) were present when the Aurora team spoke at this year’s ETHDenver conference in February.

Aurora Tokenomics

The potential of the Aurora Network is still largely untapped. The tools developed on the NEAR protocol make it easier for Ethereum developers to migrate their existing applications to the NEAR platform. This makes for a hassle-free transfer for Ethereum-based apps with faster transaction speeds and finality.

Aurora has more than 49 projects built on it, and the protocol has a TVL of $233 million. Currently trading at $1.33, its price activity has seen lows of US $1.14 on June 19, 2022, and highs of US $35.40 on January 16, 2022. A significant portion of the crypto community expect significant price increases as Aurora continues to gain widespread adoption.

Token Distribution

A portion of the governance tokens is allocated to the community treasury, which is used to finance ongoing projects and project proposals through a platform similar to Kickstarter. Also, tokens for private investors and incentives for the ecosystem are further allocated.

Additionally, the team introduced token staking, rewards for token holders participating in voting, fees for quick transfers across the Rainbow Bridge, farming of locked money in the Rainbow Bridge connectors, and many other incentives.

The Aurora Ecosystem

The Aurora ecosystem includes a diverse range of platforms, including decentralized exchanges, launch pads, and cross-chain bridges. Trisolaris is the first DEX on the network. Users can use various dual reward pools, including LUNA-NEAR, TRI-AURORA, AURORA-ETH, and other participating pools, for a reasonable APY.

The network uses the Rainbow Bridge for cross-chain bridges.

The Rainbow Bridge allows tokens to be transferred between the Aurora, NEAR, and Ethereum networks. The bridge, built on the NEAR platform, has a user-friendly interface and can be scaled up or down.

Aurora DAO Proof-of-Stake v2.0

NEAR’s new Proof-of-Stake V2 protocol allows delegators to earn rewards in multiple tokens.

Thanks to Aurora’s staking farm contracts, validators can give delegators who contribute to the security of the NEAR network more than one token.

AuroraDAO, a decentralized autonomous organization, manages the protocol. It operates similar to a regular board of directors and comprises ecosystem partners, principal investors, and Aurora labs. The AuroraDAO grants permission for the new staking farm and distributes 3% of its tokens to the NEAR community.

Future Developments

As time goes on, more features will be added to Aurorascan. The team is also developing new bridges. There are also plans to enable NFTs to switch between NEAR and Ethereum networks.

All of this will benefit people who want to use NEAR’s high-speed, low-cost network and contribute to the realization of the dream of a completely decentralized world.

In Conclusion,

Aurora can aid the growth of the NEAR ecosystem. It contributes to the integration of the NEAR and Ethereum economies and provides more options for community members and developers.
With Aurora, Ethereum users may work with well-known apps while taking advantage of NEAR’s efficiency, eliminating significant financial hurdles for users and developers.
As the NEAR protocol gains traction among developers and investors, they may look to Aurora as a viable solution to Ethereum’s scalability issue.

Disclaimer: This article is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence.

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