Free class DeFi for the Curious — how on-chain finance actually works, in plain English. Thursdays, 10am ET, 30 minutes. Save my seat →
Layer 1 · Engine 04 ← Back to architecture

Rebalance

Moves capital between vaults. Weekly.

Rebalance is the executor. Given a target portfolio from Allocation, it routes capital between positions, vaults, and chains — minimising slippage, gas, and timing risk. Reviewed weekly, executed when conditions warrant; never on a fixed schedule. New positions enter, old ones exit, and risk alerts trigger immediate moves.

The capabilities this engine contributes.

Trade routing

Computes the cheapest path between current allocation and target — direct swaps, multi-hop, bridge-and-swap, or atomic redeem-and-resupply.

Gas-aware execution

Batches actions, waits for low-gas windows, and uses MEV-protected execution paths.

Bridge management

Selects between native bridges, Across, Wormhole, and LayerZero based on size, speed, and cost.

Emergency exits

On Engine 02 risk alerts, exits positions within minutes regardless of cost — capital preservation overrides cost optimisation.

Step-by-step flow — signals in, handoff out.

  1. Receive target weights and allocation deltas from Engine 03.
  2. Compute execution plan: cheapest set of trades, bridges, and supply/withdraw actions.
  3. Hand the swap and hedge actions to Engine 05 (DEX/Delta) for execution.
  4. Confirm on-chain settlement, update vault state, publish rebalance log.
  5. Listen for Engine 02 emergency signals at all times; pre-empt scheduled rebalances when triggered.

Data feeds in. Signals out.

Inputs

  • Target portfolioPer-vault target weights from Engine 03
  • Allocation deltasCurrent vs target gap per position
  • Risk alertsEmergency exit signals from Engine 02
  • Gas oracleReal-time gas prices across chains for execution timing

Outputs

  • Trade ordersRouted to Engine 05 with size, venue, and slippage limits
  • Bridge ordersCross-chain transfers with venue and timing
  • Rebalance logPublic record of every move, with rationale and cost basis

The full Layer 1 stack.

Five engines working together. Explore the ones you haven't yet.

Curation you can see.
Yield you can feel.

Five engines. Eight strategies. Eighteen vaults. One deposit — every layer visible on-chain.

Launch Vaults → See the architecture