Portfolio Management System
Last updated
Last updated
The Portfolio Management System (Portfolio MS) is a core module responsible for managing the allocation of liquidity across the protocol. By leveraging the actual and target ratios from it ensures an up-to-date understanding of the available liquidity. Using this information, Portfolio MS directs liquidity to target protocols selected for their potential to generate rewards, aligning with allocation weights, parameters, and defined by .
When the actual and target levels of fall outside of predefined acceptable bounds, Portfolio MS initiates a rebalancing process to maintain protocol stability. This process may involve withdrawing liquidity from certain protocols through and burning excess to reduce the circulating supply. Alternatively, when more liquidity is needed, a request can be sent to to mint more and allocate them to the selected protocols.
In addition to target protocols, the Portfolio MS allocates a portion of to to ensure that sufficient liquidity is available for users.