Permissioned Markets Policy
- Target Utilization: Maintain ~80% utilization (within a 75-85% band) to balance borrow APR and supply yield.
- Stability Halts: New deposits are paused if the borrow curve becomes unstable or utilization cannot be maintained.
Reserve Policy
- Dynamic Sizing: The reserve size is adjusted dynamically based on utilization volatility and loop flow imbalance.
- Coverage: The reserve must cover user redemptions, rebalancing liquidity under stress, and flash loan capacity.
Rebalance Policy
- As-Needed: Rebalances are triggered when a live allocation deviates from its ideal weight by at least 1-3%.
- Gas-Aware: Execution only occurs if the expected APY improvement exceeds the amortized gas and slippage costs.
- Batching: Multiple small deviations are batched to improve gas efficiency.
This framework provides predictable, rule-based automation, removing emotion and maximizing efficiency within defined safety constraints.