Aurora Intents connects Solana wallets to Elara’s Ethereum yield

Aurora Intents has connected Solana wallets to Elara Finance’s Ethereum-based treasury product, allowing users to deposit stablecoins with one signature and approve staking with a second, according to Aurora Labs.

Aurora Labs, in an Oct. 15 press release, said the integration lets Solana users access Elara through the wallet they already use, while the deposited funds move to Ethereum. The company described the Solana route as live at Elara’s application, with deposits and withdrawals managed from the same wallet.

Aurora Intents handles deposits before a separate staking approval

Under the process outlined in the announcement, a user first signs a deposit from a Solana wallet. Aurora Labs said the funds reach Ethereum, where Elara mints elUSD, its dollar-referenced treasury asset.

After receiving elUSD, the user approves a second transaction from the same Solana wallet to stake it into sELUSD, according to the release. Elara said the staked token earns yield from stablecoin market making.

For the resulting position, Aurora Labs said both elUSD and sELUSD remain on Ethereum in an account controlled by the user’s Solana wallet. The company said Aurora Intents does not hold the funds during the process.

Through Intents Connect, Aurora Labs said applications can handle actions on a destination blockchain after moving funds there, including minting, staking, and depositing. For Elara, the company described a deposit approval followed by a separate staking signature, both made from the originating Solana wallet.

Declan Hannon, CEO of Aurora Labs, linked the integration to the steps users face when entering a product on another blockchain.

“Every extra step between a user and a product costs that product deposits,” Hannon said.

In the same statement, Hannon said users would rather skip “bridging and buying gas,” adding that Aurora Intents handles the route between their existing wallets and Elara.

Elara withdrawals return stablecoins to the original Solana wallet

On withdrawal, the announcement said users first unstake sELUSD and redeem elUSD for stablecoins. Aurora Intents then returns the funds to their Solana wallet, completing the exit through the same wallet used to enter the product.

Elara described itself as a treasury management product within the Brila ecosystem. According to its description, stablecoin deposits create elUSD, while staking that asset as sELUSD provides access to the market-making yield strategy.

Sebastien Davies, Elara’s head of strategy, said the integration targets stablecoins already held on Solana rather than requiring their owners to manage another wallet.

“Aurora Intents gives those holders a direct route into Elara without bridging or managing a second wallet,” Davies said.

Behind the connection, Aurora Labs said Aurora Intents uses NEAR Intents, a solver network developed by NEAR Protocol that has processed more than $34 billion in transactions. The release attributes that figure to the underlying network, rather than deposits into Elara.

Earlier Aurora integrations covered Sui deposits and Zcash auction funding

In September, crypto.news covered Aurora’s one-signature execution on Sui, where Aurora Labs said users could fund supported applications and complete actions without separately arranging a bridge, wallet change or SUI gas purchase. According to the Sept. 17 announcement, NEAR Intents supplied the liquidity, settlement infrastructure and connections between chains.

For that integration, Aurora Labs said applications could accept funds into lending, trading, staking and yield positions. Hannon described Sui as the second non-Ethereum-style blockchain supported by the service after Solana, while the company put the underlying network’s routed volume above $30 billion at the time.

Separately, Hannon said Aurora Intents routed Zcash auction funds worth more than $19 million across 1,718 swaps, according to a Sept. 21 report. The zkSNARKS auction received $36.94 million in submitted volume, with Aurora processing more than half of the assets converted and deposited.

Within Aurora’s routed volume, Hannon said USDC accounted for 27% and arrived from four networks, with Solana supplying the largest share. Native ETH represented another 21%, while participants could also fund their bids with BTC, SOL, BNB and other supported assets.

For those auction transactions, Hannon said solvers competed to deliver a specified ZEC output at a rate approved before signing. He also identified dependencies on the NEAR Intents settlement contract, quoting market makers and bridges holding source assets.

NEAR’s recent security incident and U.S. tax rules provide context

On Oct. 1, NEAR co-founder Illia Polosukhin announced that the service had resumed after an exploit involving $3.8 million in USDT on BSC. He attributed the incident to a bug in the interaction between Omni’s deposit and withdrawal infrastructure and the NEAR Intents smart contract.

According to Polosukhin, the SHIELD monitoring system detected unusual activity, prompting a temporary pause, and the team fixed the vulnerability within an hour of detection. He pledged full compensation for affected users and said the core NEAR Protocol, NEAR token, and other applications were unaffected.

At the time of the restart, Polosukhin said some affected chain connections remained restricted. He also committed to a review and postmortem, with findings feeding into additional security measures.

For U.S. taxpayers, the Internal Revenue Service states that income from digital-asset transactions must be reported on federal tax returns. Its April 2024 guidance includes stablecoins and rewards income from staking or earn programs, and requires filers using the listed federal return forms to answer the digital-assets question and report related income.