The idea that user run agents will continuously rebalance across vaults is so compelling, but the math isn't great for highly active rebalancing Average rebalance tx fee: $0.001 Rebalance rate: every 10 seconds Annual rebalance cost: -$3,154 Deposit size: $100k Baseline Yield: 5% Return: $5,000 So active rebalancing needs to outperform baseline yield by 63% just to break even. There is also thin yield differentials between the top low risk vaults, so I'm skeptical how one would outperform by 63% without altering the risk profile With hourly or daily rebalancing, the transaction costs are extremely low, so it becomes viable. Would be interesting to track how much better that would outperform a set and forget strategy, my guess is not great, but not sure However, active rebalancing seems pretty interesting for high risk strategies, where yield differentials are greater and being the first to exit can meaningfully protect your capital. This seems like a much more likely applications, but these agents will need much richer data and context Fun times ahead

lui | Exponent
@lui1of1
03-11
Watching 12,000 agents in real time bouncing between different vaults to find the best yield is wild window into the future
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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