would require an increasing number of transactions as more indices are
created. In addition, smaller indices would not benefit from yield
optimization because their assets would need to be reserved for
redemptions and rebalancing.
Instead, we maintain one reserve for each asset pool on the platform. This
dislocates the number of transactions required to facilitate asset
optimization from the number of new indices. More importantly, it
ensures that regardless of the size of an index it can benefit from
additional yield. This is due to the fact that yield is shared pro rata across
the indices that make up an asset pool.
http://www.lucifercoin.io/
LUCIFER has introduced rebalancing bands which prevent the rebalancing
system from operating when an asset’s weight sits outside of an
acceptable range. This functionality stops excessive re- balancing triggered
by small movements in the underlying price and also provides safety to
the system when prices move by a great magnitude.
Bands are split into upper and lower bounds. Upper and lower bounds
exist above and below the in- tended weight for an asset. The bands are
always centered to the intended weight of each asset on the platform.
Therefore, rebalancing bands comprise four key points. In the context of
rebalancing bands lower and upper are adjectives to describe the distance
away from the intended weight rather than the direction of the weight
change. Let's take a look at the key points above the intended weight.
Let's assign the variable
Spot prices used within the integrated system are injected via oracles
which aggregate pricing data from multiple sources and outputs a
weighted average result. This ensures pricing data is robust against flash
loan manipulation.
The Rebalancing Surface is critical for proper rebalancing of an aggregated
system. It maps the relationship between every asset held and enforces
these relationships during swaps. This prevents the system from
rebalancing two assets that do not share any common indices; preventing
value leakage from one asset to another. It also ensures that only the
portion of the unbalanced delta, that is attributed to the two assets being
rebalanced, is corrected.