Rebalancing for risk is an agent strategy we're testing with a few teams now. The idea of an agent tracking vault functions/roles by counterparty, liquidity, and operational risk, and setting up guardrails against them.
It's a more qualitative and dynamic analysis than just yield optimization, which is what agents excel at. imo the current agent "optimizations" are really just if/else formulas, not truly agents used to their full potential.
Dan Smith
@smyyguy
03-11
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: x.com/lui1of1/status…
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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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