Kickoff Development of Autonomous Rebalancer dApp (MVP Phase)

📌 Summary

This proposal recommends initiating development of a Rebalancer dApp MVP that utilizes autonomous on-chain agents to automatically monitor and rebalance portfolio allocations based on user-defined strategies. This MVP will demonstrate the technical potential of autonomous smart contracts and lay the groundwork for a full-featured portfolio automation suite.

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🔍 Motivation

As DeFi becomes increasingly composable and complex, managing risk and exposure efficiently requires more than manual effort. Rebalancing is a core portfolio management activity that is repetitive and time-sensitive—making it an ideal candidate to showcase autonomous agents.

Launching an MVP with narrow, well-defined functionality allows us to: • Validate user interest and demand • Demonstrate technical capability in agent-based automation • Identify bottlenecks in gas efficiency and monitoring • Establish a framework for further expansion (e.g., yield optimization, cross-chain swaps)

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🛠️ Technical Specification

MVP Scope • Supported Tokens: Limit to 3–5 stable assets (e.g. USDC, DAI, LUSD) on Ethereum or L2 • Allocation Strategy: Target fixed ratio (e.g. 40/30/30 split) • Trigger Mechanism: Deviation threshold (e.g. ±5%) from target allocation • Rebalancing Logic: Use on-chain swap aggregator (e.g., 0x API, 1inch, or CowSwap) for execution • Agent Architecture: Deploy a keeper-compatible smart contract agent (e.g. Gelato, Chainlink Automation, or custom logic) • User Interface: Minimal dashboard showing current balance, target vs. actual, and recent agent activity

Design Considerations • Gas optimization via batching and minimal state updates • Permissionless or allow-listed agent runners • Fallback and safety checks for price manipulation or slippage • Upgrade path to support dynamic strategies and user-custom rules