Rebalancing process for creator

How does rebalancing work?

A bot monitors the Creator Vault, checking whether a rebalance is needed at intervals of 20 minutes. When a vault meets the strategy's rebalancing criteria, the process looks as follows:

  • All funds withdrawn

  • New range identified

  • Funds swapped according to new asset ratio + funds deposited

  • If deposit impacts asset ratio, thus remaining funds are swapped at new ratio

  • Remaining funds deposited

How does this swap work?

Kamino maintains its own Switchboard oracles. These oracles read prices from various DEXs and CEXs, ultimately identifying the market price of each asset in the vault. Rebalancing will take place only when the Jupiter price matches this market price.

There are varying degrees of tolerance for the difference between Jupiter price and fair price, based on the respective assets in the vault.

The bot will continue to attempt to complete the rebalance until the prices match - until then, the remaining funds will be uninvested.