Rebalancer

The Rebalancer is a core component of the Protocol and is crucial in achieving the best possible yield for Fleets. Operating as an AI-informed system, it is responsible for rebalancing and reallocating assets from lower performing ARKs to higher ones.

Rebalancing is implemented by Keeper AI Agents but is subject to strict constraints set within the FleetCommander and controlled via Governance. These constraints set the limits on what a Keeper Agent can do. Concretely, this might be restrictions on how much value can be moved during each rebalance or how frequently funds can be moved. Third-party actors are expected to produce timely reports on the Protocol's rebalance activities, using on-chain data. These reports will highlight any rebalance actions that may not align with the best interests of the Protocol, ensuring they are flagged and brought to the attention of governance.

Rebalancer mechanisms and AI Agents are intended, and expected, to be completely permissionless and open. However, at the Protocol's inception, rebalancing will be restricted to a whitelisted set of Keeper Agents approved by Governance and a limited set of advanced components. Once Governance is satisfied that rebalancing can be made permissionless then the whitelist can be removed.

Keepers

Keepers

Keepers perform off-chain monitoring and make rebalancing calls to optimize yield allocation across DeFi protocols. Our Keeper infrastructure is evolving towards a decentralized network of specialized AI agents working collaboratively to maximize returns while maintaining robust security guarantees that combines several innovative components:

  • AI Agents that analyze yield opportunities and propose rebalancing strategies

  • Safe multisig wallets as coordination mechanisms for consensus-driven execution

  • Zero-knowledge proofs for private strategy validation and frontrunning prevention

  • On-chain verification of performance metrics and constraint compliance

Initially, Keepers operate using a limited set of these components and are whitelisted to ensure system stability as we scale. Third parties who wish to become Keeper's should submit a request via Governance. Compensation for Keepers is also determined by Governance and effected by the TipJar contract.

All Keepers must operate within the parameters set by Governance at the Fleet Commander level, ensuring that ARKs offering the highest real-time APY receive optimal capital allocation while maintaining protocol security and efficiency.

This infrastructure will be rolled out in phases as we carefully test and validate each component, working towards our vision of a fully decentralized, intelligent capital allocation system in DeFi.

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