Rebalancing Tiers & Engine
ZyFAI now adapts how often your Agent rebalances for higher yield based on your balance. More capital now gets more attention. Smaller deposits act smarter.
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. This tiered approach balances performance and efficiency: 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.
Furthermore, by refining every layer of the rebalancing logic, Smart Rebalancing v.2 consistently outperforms the previous rebalancing 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:
Average static strategy
7.84%
$0 – $3,000
13.23%
$3,000 – $10,000
16.71%
$10,000 – $100,000
18.81%
$100,000+
19.13%
In other words, allowing the Agent to search for better yield more often translates into better returns for you. And because the Agent always weighs the benefits against costs (slippage, gas and other fees), it only moves your funds when it makes economic sense. In practice, this means your funds capture more upside while still benefiting from the same disciplined, safety‑first approach that ZyFAI users expect.
Rebalancing Checks
ZyFAI Agent isn't just moving your funds on a whim. Behind every rebalance is a set of safety and efficiency checks designed to protect your capital and maximise returns. Here's an overview of the five tests the Agent runs before it shifts your position.
1. Ensuring Pool Safety
Before entering a new opportunity, the Agent compares the size of the pool to your wallet balance. It prefers pools that are significantly larger than your position so you don't end up owning a large percentage of the liquidity. This helps to minimise the impact of the underlying pool's APY or a rapid reduction in total liquidity. If a pool suddenly shrinks in size, such as after a large exit, the Agent will exit your position rather than leave your funds stranded in a shallow market.
2. Looking for Meaningful Yield Differences
Not every uptick in yield is worth chasing. The Agent calculates the difference between the yield you're currently earning and the potential yield in the target pool. Only when the improvement crosses a meaningful threshold will it consider rebalancing. Minor yield differences are ignored to avoid unnecessary spendings.
3. Checking Yield Stability
A juicy APY isn't useful if it evaporates overnight. That's why the Agent reviews a week's worth of yield data for the target pool. If the yield has been relatively steady (not dramatically spiking or crashing), then the pool passes this test. This allows the Agent to capture upside without jumping into unstable opportunities.
4. Balancing Profit Against Transaction Costs
Switching pools isn't free: every move incurs slippage and fees. The Agent estimates how much additional yield the new pool would generate each day and compares it to the one‑off cost of moving your funds. It then calculates how long it would take for the extra yield to cover those costs. If the payback period is reasonably short, the Agent goes ahead. Otherwise, it waits until a better opportunity arises.
5. Monitoring Money Market Liquidity
Finally, the Agent keeps an eye on liquidity. When a money market becomes highly utilised and the remaining liquidity shrinks to a level that could affect withdrawals, the Agent proactively pulls out your funds. This avoids situations where your funds might become illiquid or yield deteriorates because the market is too crowded.
By combining these checks, ZyFAI Agents aim to capture higher returns without taking on unnecessary risk or incurring excessive costs. It's a disciplined approach that lets you benefit from dynamic yield optimisation while keeping your capital safe and your participation effortless.
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