Impermanent Loss Protection - Debt Rebalancing

Debt ratio thresholds are set, commonly +/- 2%, if the debt ratio becomes de-ranged, a debt rebalance transaction is triggered by a Keeper to rebalance the position back within range. The degree this transaction rebalances is configurable. There is also an inverse relationship between headline or live APRs, and the debt ratio threshold set. Ie if you set the debt ratio bands significantly wider than +/-2% it is likely to result in less Keeper fees, and a higher headline APR.

This is novel technology, which is even more relevant today than ever after events such as the crash of LUNA, and the de-pegging of many stable coins such as UST, DEI, TOMB, USDD to name a few. The Keepers we use act automatically and fast to rebalance the LP position, thereby preserving the end user’s capital dramatically more than without this technology in place.