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So to oversimplify, is the idea to bring an AWS Aurora-style storage mechanism natively to Postgres?

Aurora is one big database, isn't it? PgDog is just a proxy where you tell it which shard to access.

Yes, except it doesn't have any cross-dependencies on the same volume, so the uptime here should be higher.

Aurora has a completely different storage backend. PgDog is a front end proxy - each server in the cluster is still using standard Postgres right?

Yup!