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Rebalancing

HyperAMM maintains a target liquidity composition of 2/3 on EVM and 1/3 on Core. The rebalancing system automatically adjusts when this ratio drifts.

Why Rebalance?​

As swaps occur, the EVM pool's token balances shift. The pool may accumulate too much of one token and too little of another, moving away from the ideal 2/3-1/3 split. Rebalancing:

  • Restores optimal liquidity distribution
  • Ensures sufficient collateral on Core for hedging
  • Maintains pool health and trading efficiency

6-State Rebalancing Machine​

The rebalancer operates as a state machine with six states, orchestrated by an automated keeper:

  1. Idle — Composition is within acceptable bounds
  2. Deposit Pending — Assets are being bridged from EVM to Core
  3. Trading — Spot/perp trades executing on Core to adjust positions
  4. Perp Withdrawal Pending — Waiting for Core perp withdrawals to complete
  5. Withdraw Pending — Assets are being bridged from Core back to EVM
  6. Emergency — Triggered when anomalies are detected; halts automation

The keeper monitors pool state and triggers transitions when composition drifts beyond configured thresholds.

Emergency Mode​

If the rebalancer detects an anomaly — such as failed hedge orders, unexpected position changes, or extreme market conditions — it enters emergency mode:

  • All automated operations pause
  • Protocol operators are alerted
  • Manual intervention may be required to resume

This is a safety mechanism that prioritizes capital preservation over continued operation.

Rebalancing Impact on LPs​

Rebalancing is transparent to LPs:

  • No action required — fully automated
  • Minor costs from bridging and trading are absorbed by the pool
  • Pool composition and rebalancer state are visible on-chain

Next Steps​