Autorebalancer for LP pools that helps route capital autonomously from crowded LP pools to uncrowded LP pools
Autorebalancer for LP pools that helps route capital autonomously from crowded LP pools to uncrowded LP pools

Prastut Kumar
Problem to Solve
Liquidity providers (LP's) currently face a highly complex decision-making process when seeking to optimally rebalance their LP positions. It requires an LP to account for a complex set of factors, including but not limited to:
- variance of yields and their composition;
- different fee and reward systems;
- offsetting various costs such as gas, slippage, and trading fees;
- different AMM models.
Differentiating between AMM models warrants highlighting, as its complexity is an often neglected core challenge of manual liquidity provision.
Additional factors complicating the process include the significant amount of time LPs must spend researching opportunities and interacting with multiple protocols, making the process time-consuming and cumbersome.
Even without considering these problems, the high costs of rebalancing and compounding often lead to underperformance and can prevent LPs from participating altogether.
If we can solve this problem, liquidity provisioning for correlated assets will become more efficient and can even compete with prop AMM's by undercutting them.
Possible Solution
Build an auto rebalancer vault protocol where:
- Users deposit assets into an vault, which represents a set of potential deployment destinations + rebalancing logic between them.
- From there, the protocol auto rebalances capital by monitoring the underlying pools
If solved you will be be able to tokenize these vaults into yield bearing tokens (like autoSOL represents SOL + yield coming from multiple LP destinations) and these tokens will start to reflect the standard LP'ing yield rate in Solana DeFi.
Standard LPing yield rate can then be put as collateral into other protocols like Exponent and Kamino which will further increase the liquidity depth.
This is enable new LST's, new stablecoins and new bitcoin, ethereum wrappers to get instant liquidity by plugging into the protocol. Think of this autopool as growth as a service for these new assets.
Resources
Just see DEX pools of correlated assets on all DEX's on Solana and you will be able to com
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