Rebalancing Strategy 🔄
To ensure both capital efficiency and safety within the pool, we perform regular Reserve Replenishment and Rebalancing (Unstaking).
Reserve Replenishment Rules 💧
- Interval: Every 6 epochs.
- Replenishment Amount: Approximately 5 % of the pool TVL is allocated to the reserve.
- Exception Handling: If market demand surges or other special circumstances arise, we may exceed the 5 % limit.
The reserve serves as a safety buffer against sudden changes in stake volume and market volatility.
Rebalancing (Unstaking) Priority ⚖️
When a reserve replenishment occurs, we may also perform rebalancing to optimise stake distribution. Validators are unstaked in the following priority order until each validator reaches its target stake size:
- Malicious validators Examples: commission rugs, participation in sandwich attacks, or any behaviour harmful to stakers or DeFi users.
- Under‑performing validators Failing to meet operational expectations, e.g. low uptime, high skip rate, or yields that are significantly below expectations.
- Over‑staked validators Validators whose stake exceeds their target amount, even if performance is otherwise satisfactory.
Additional Notes 📝
- Validator status is continuously monitored; emergency unstaking outside the regular cycle may occur when necessary.
- Specific evaluation metrics and thresholds are reviewed and adjusted as operational conditions evolve.