Liquidity Rebalancing

Liquidity rebalancing is adjusting liquidity distribution among yield sources within a strategy. Rebalancing occurs based on voting results at the beginning of the next epoch following the vote.

Cadabra users decide how to rebalance funds based on their forecasts for the next epoch’s yields or for any other reasons.

For example, if an underlying protocol is expected to provide higher yields, it may receive more votes, leading to more funds being allocated to it after rebalancing, resulting in higher amount UPR collected.

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