Rebalancer Contract

Definition ∞ A rebalancer contract is a smart contract designed to automatically adjust asset allocations within a portfolio or liquidity pool. This type of smart contract contains programmed logic that periodically or conditionally executes trades to maintain a predefined asset ratio or target allocation. It functions autonomously to optimize capital efficiency or risk exposure. This occurs by buying or selling assets as market prices fluctuate.
Context ∞ Rebalancer contracts are central to automated market making, yield optimization, and various decentralized finance strategies. News often discusses their role in maintaining stable liquidity pools or optimizing returns for users. It also highlights the importance of secure and efficient contract design to prevent potential exploits.