Aurora DAO Whitepaper

Abstract

Aurora is a suite of dapps and protocols that together comprise a fully decentralized and autonomous
banking and finance platform. Complete with its own stablecoin, the boreal, Aurora aims to recreate and
improve upon the existing financial ecosystem in a decentralized fashion. Aurora offers a stable, private,
and open financial system to anyone in the world regardless of geographic location, class status, or
privacy preferences. The primary components of Aurora are a cryptocurrency bank (Decentralized
Capital) and a financial asset exchange (IDEX) which work together to offer the same financial services of
the modern world. All of Aurora operates on a distributed computing network and utilizes an EVM
compatible childchain for transaction processing, decentralizing the whole system and enabling it to run
autonomously.

Inspired by F.A. Hayek’s and George Selgin’s work on Free Banking theory, Decentralized Capital supplies
loans in a decentralized stablecoin known as boreals, and provides modern day banking services to
those who are underserved by the current system. The boreal is backed by a combination of
cryptocurrency reserves, debt from loans, and dapps endorsement, ensuring price stability that is on par
with existing fiat options. In addition to providing banking services, Decentralized Capital will market
make on IDEX, helping maintain boreal price stability, and hedge the reserves through tools such as
predictions markets. Traders on IDEX can utilize the boreal as payment for trading fees or as a stable
base currency, ensuring that there is demand for boreals early on within the Ethereum ecosystem. Once
boreals are an established stable currency within the cryptosphere, Aurora will begin expansion into
other markets while Decentralized Capital will transition to sustainable fractional reserve banking.

Aurora DAO Website
Aurora DAO Whitepaper

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