Rebalancing
Prices move, so the split drifts. Rebalancing is the act of trading it back — and it is the closest thing the protocol has to a strategy.
When it fires
Rebalancing is threshold-based, not scheduled. The keeper acts once drift crosses a band rather than trading on a timer, which keeps the vault from paying spread on noise.
| Condition | Result |
|---|---|
| Drift inside the band | Nothing happens |
| Drift outside the band | Trade back toward target |
| Oracle stale | Refuse to trade |
| Quote worse than the slippage cap | Refuse to trade |
What it does to returns
Rebalancing sells what has run and buys what has lagged. In a choppy market that is a mild tailwind; in a market that trends in one direction for a long time it will lag simply holding the winner. That trade is deliberate — it is what keeps the risk you signed up for from quietly drifting into a different one.