AuBNB: The Next-Gen LRT for the BNB Chain Ecosystem
Last updated
Last updated
Liquid Restaked Tokens (LRTs) are being more increasingly recognized as essential components of DeFi, facilitating liquidity without compromising the benefits of restaking. AuBNB introduces an evolution in the LRT space by addressing key limitations such as liquidity fragmentation, auto-compounding from different sources of yield, and operational complexity, ensuring high-performance yield across the BNB Chain and beyond.
AuBNB, powered by Kernel DAO, represents an innovative next-generation Liquid Restaked Token (LRT) designed to enhance the security and efficiency of the BNB Chain ecosystem. This token leverages the power of automatic compounding across multiple yield sources—staking rewards, restaking incentives, and pure yield generated by the BNB ecosystem—ensuring market-leading returns. Unlike traditional reward models such as point systems or airdrops, AuBNB offers a straightforward and highly efficient yield optimization engine.
AuBNB autonomously compounds rewards generated through multiple streams, including:
Staking Rewards: Direct yield from staking BNB-based assets.
Restaking Rewards: Additional incentives granted by Kernel's AVSs and protocols.
Ecosystem Yield: Interest generated from other DeFi products inside the BNB Chain ecosystem and AutoLayer's own rewards.
This multi-layered reward engine is integrated into the AuBNB protocol, ensuring a continuous reinvestment cycle that maximizes returns just by holding AuBNB.
Although natively aligned with the BNB Chain, AuBNB is designed to overcome the issue of liquidity fragmentation across multiple blockchain ecosystems. The adoption of the XERC-20 technical standard enables AuBNB to be seamlessly transferred and managed across any EVM-compatible blockchain. This cross-chain operability ensures:
Unified liquidity across blockchains.
Simplified interoperability for decentralized applications.
Intent-based operations that allow for efficient execution of complex multi-chain transactions.
AuBNB further enhances yield potential by securing multiple protocols across the BNB ecosystem, unlocking additional rewards in the form of:
AutoLayer's Incentives: Smart contract-based incentives distributed proportionally to the user's contribution to the protocol's security.
Transaction Fees: Users earn a portion of fees generated from DeFi transactions involving staked or restaked assets.
Protocol Incentives: Protocols secured through Kernel will generate yield through BNB security.
Airdrops: Periodic airdrops are distributed to participants based on their level of engagement and the protocols they support.
BNB-Specific Rewards: Participants also get unique rewards exclusive to the BNB Chain ecosystem, such as governance tokens and AutoLayer bonus yields.
AuBNB simplifies the traditionally cumbersome process of restaking through a 1-click restaking engine. This design removes the complexities associated with asset conversions, transaction bundling, and yield optimization and abstracts it into one easy-to-use product.
BNB serves as the primary base asset backing AuBNB, offering high-quality collateral that is recognized across multiple DeFi protocols. Key advantages include:
Reduced liquidity fragmentation across platforms due to cross-chain compatibility.
Enhanced stability for institutional DeFi use cases.
Improved collateral quality.
The combination of robust collateral and seamless cross-chain operability makes AuBNB an ideal asset for use in lending, borrowing, and yield-generating DeFi strategies.
