Our story starts 2 years ago, on the day Terra Luna collapsed. On that day we began our journey for more stable crypto.

We lost our money and assets that day and really felt the burn.

Now, 2 years later, we are sharing our technology, and idea on how to do it better.

Up until recently, the crypto market offered investors either a pure defi roller coaster or when someone wants to get of the roller coaster for a while, but not leave the Amusement park altogether (aka, off-ramping to fiat), a stable parking vehicle: a few stable coins that are supposed to be pegged to the USD 1:1, but may or may not be, which have (listen to this!) an average holding time of 40 months. 40 months?? That’s 3.3 years. In the last 3.3 years the USD Inflation has grown at a cumulative rate of 17.7%! For us holders, it means less than 83 cents on the buck. Insane.

I’m not even getting into evolving markets that suffer from tenths of percent inflation every year. They have to hedge against their own local currency or their purchasing power will degrade so quickly, sometimes a loaf of bread’s price becomes the some numeric amount as a house used to cost in the same persons neighborhood. They typically hedge in dollars. That’s a real big pain. Not the 5% annual devaluation we are taxed every year by government printing more money and secretly taxing us all right in our face, unknown and disregarded by most “mainly cash” holders as such, but I digress for now.

But a new alternative arrises out of need - RWA based tokens and yield bearing, bond backed stable coins. We are not alone in the.. a.. space, but our product is unique: we are the only ERC20 based regulated ETF backed token to be sold on the retail market (aka exchanges and wallets) - imagine an alternative to USDT that ticks all the right checkboxes. We did.

On day one there were just the two of us, My partner Bar Elkis and me, Michael Bar Zeev.

We met, and discussed how to solve the problems that we saw in the current stable coin market:

1. Backing assets and treasury management
2. Transparency and trust
3. Inflation / constant reduction in purchasing power
4. Governance, ownership
5. Regulation

We had an idea on the problems and ever since that day our quest and journey for better stable crypto was on.

We spent the next 2 years gathering an amazing core team of professionals and partners from the industry (see us on https://auroca.finance), and with them, creating a product and technology that adheres to our ideas and vision, while researching and creating a legal structure that supports our insistence to be available to any person, on the retail markets.

Finally. the result: In fact, we’ve created a “yield bearing stable coin”, but our ginormous team of lawyers do not allow us to call it that (as it promises yield + we are not a stable coin under any regulatory terms and we don’t aim to be) so let’s call it a fully backed token which allows one to preserve their purchasing power without giving up on transparency, safety or liquidity. Allow me to attend to each point, as we had been very meticulous about each of them - as creators of financial tools must be in order to be worthy of peoples investments.

Here’s the breakdown:

1:1 backed by a basket of regulated tokenized ETF’s, that are massively traded and popular on traditional markets. Altogether they bolster around $8.5B in TVL and are sold in volumes of hundreds of millions daily. The index history goes back 18 years to the creation of the ETF’s and allows at least a steady initial growth into the first few hundreds millions of dollars.

Maximum transparency - all assets reside in custody of our regulated Swiss banking partner, Incore bank AG. But that doesn’t solve the transparency problem - this was elegantly solved by our partners at Chainlink, which connected directly to the Invore bank API to report the token’s account treasury value every few seconds, live on the blockchain - allowing any token holder to check their real token value at any time.

Inflation protection - or more accurately preservation of purchasing power - DNR is an asset referenced token, which references (eg, it is 1:1 backed by) a basket of 6 ETF’s in different weights, that our treasury team, led by Nir Elkin (a traditional trader that manages large sums of funds at HFT), had chosen and formulated to hedge inflation and on an 18 year history average, outperforms the USD by 5.5% annually.

Ownership and Governance - Any centralized body can be robbed or rotten from the inside - so we opted for a DAO which is established in Zug, so decentralized, but also has legal capabilities and also has accountability and is regulated. The token has its own bank account, that is protected by Swiss asset segregation laws - meaning even if the bank or any of our intermediaries, or us, go bankrupt, customer assets are still registered to them and safe.

Regulation and legal structure - Or, how Isn’t this a security under MiFID? We have worked with our regulation team, led by Adv. Shoham Ben Rubi, former head of the international department of the Israeli “SEC” (they are called “Reshot Leniyarot Erech” in Israel, if you insist, and he was the position holder incharge of monitoring and communicating with bodies like Binance, amongst others) and a team of lawyers from leading European firms which had reached an opinion that since we are in fact an asset that references to a basket of 1:1 backing asset, the instrument can be regulated under new EU MiCA regulations as an Asset Referenced Token, or ART in short. We are now working on receiving a de facto ART license to issues these regulated retail tokens in Austria.

Naturally, when discussing the above with experts, a few questions still arose:

⁃ You guys still sound pretty pretty centralized - we agree - that’s why we are: a. planning on allowing anyone to join us in token governance and decision making, by allowing token holders to vote with us on all proposals in the DAO that controls the token, b. working with several partners to expand our regulated security baskets, so funds can be diversified and other more advanced baskets created, c. working on agreements with additional banks to allow better dispersion and to reduce risk and centralization even further,

Another issue discussed is how to offer more involvement and engagement to the community of Auroca DAO Utility token holders. We want to earn together with our community shareholders and as a non profit we have saved a large percentage of tokens to continue to give out to the community until the core founding team will hold only 20% of the association and 80% will be owned by the actual community around Auroca.

We would love any input on how to improve derisking, decentralization, or any other de.

Yours Michael Bar Zeev Co Founder, Head of Business Development And President of the Auroca Association.