Liquidity Provider Benefits with ERC-4626-Integrated Pools

Aurelia introduces a novel DEX architecture that transforms traditional liquidity provisioning by leveraging ERC-4626 vault tokens (aurTokens) as first-class assets. This enables LPs to earn stacked yield on deployed capital, while benefiting from composability, safety, and capital efficiency.

How It Works

In Aurelia, liquidity providers don't just earn from trading activity they also benefit from the underlying yield strategies embedded in vault tokens. When an LP adds liquidity using aurTokens (e.g., aurUSDC, aurETH), those tokens continue accruing yield from their respective Metavaults or Structured Products.

These vault tokens can represent strategies involving:

• Lending markets (e.g., Aave, Morpho)

• Pendle yield stripping

• GMX & CL LP strategies

• Delta-neutral or fixed-income vaults

• Partner vaults (audited & governance-approved)

Benefits to Liquidity Providers

🔁 Stacked Yield Layers

• Vault APR: LPs continue earning yield from the strategies inside each aurToken.

• Incentives: Receive IGNI emissions if the pool is voted in by xIGNI governance.

• Bribes: Eligible for protocol bribes when voting power is directed toward certain pools.

💧 Deeper Capital Efficiency

• Yield-bearing tokens mean LPs get paid even when volume is low.

• aurToken + aurToken pools allow yield-on-yield positions ideal for bluechip pairs like ETH/BTC.

• LP capital stays productive across layers of the ecosystem.

🔁 Auto-Wrapping Simplicity

• Users deposit normal tokens (e.g., USDC), and the router automatically wraps them into aurTokens.

• Unwrapping happens automatically at the exit of a swap or LP withdrawal.

🔐 Safety-First Design

• Only audited and whitelisted ERC-4626 vaults are accepted as valid ERC4626 tokens.

• NAV-based pricing prevents manipulation and protects LPs from bad actors.

• Circuit breakers, TWAP enforcement, and oracle guards further reduce risk.