Rebalancing Tiers
The Intelligence & Strategy Layer is responsible for deciding when, where, and whether to move your capital. At its core is Smart Rebalancing v.2: a rule-based engine that continuously evaluates yield opportunities across all supported chains and protocols.
This page covers two key components: how rebalancing frequency scales with your deposit size, and the safety checks every rebalance must pass before execution.
Balance Tiers
Not every portfolio needs to be checked at the same cadence. Smaller deposits benefit from staying in a single position longer, while larger balances can justify more frequent rebalancing, provided the yield gain outweighs the cost.
To keep this fair and efficient, Zyfai tiers the Agent's rebalancing frequency based on the size of your deposit. You get more attention when it matters most, and the system doesn't waste resources chasing negligible gains on small positions.
Backtests
We've run extensive simulations to see how rebalancing frequency affects returns. Starting with a static strategy, where funds stay in the same pool regardless of market shifts, we compared Smart Rebalancing v.2 against portfolios from each tier and our previous rebalancing engine.
The results are clear: dynamic rebalancing improves yield across the board. Even a single daily rebalance tends to outperform a static strategy over time. Increasing the frequency further produced incremental gains, reflecting the value of reacting quickly to changing APYs.
Smart Rebalancing v.2 consistently outperforms the previous engine. Each optimization contributes to faster, more accurate decision-making, allowing Agents to identify and act on yield opportunities while minimizing unnecessary movements and gas costs.
The result is a rebalancing system that's not only more efficient but also demonstrably more profitable across all tiers of capital:
| Balance | Rebalances per Day | Average 30d APY for USDC (w/o rZFI) |
|---|---|---|
| Average static strategy | 0 | 7.84% |
| $0 - $3,000 | 1 | 13.23% |
| $3,000 - $10,000 | 3 | 16.71% |
| $10,000 - $100,000 | 6 | 18.81% |
| $100,000+ | 12 | 19.13% |
Allowing the Agent to search for better yield more often translates into better returns. And because the Agent always weighs benefits against costs (slippage, gas, and other fees), it only moves your funds when it makes economic sense. In practice, your funds capture more upside while still benefiting from the same disciplined, safety-first approach that Zyfai users expect.