> For the complete documentation index, see [llms.txt](https://rebalance.gitbook.io/rebalance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://rebalance.gitbook.io/rebalance/how-it-works/chill-r-strategy.md).

# Chill® Strategy

REBALANCE has developed a cutting-edge strategy designed to streamline the optimization of lending portfolio. It's objective is to enhance returns through a process of continuous rebalancing, maintaining a low-risk profile while ensuring your investments are always positioned for optimal performance, eliminating the need for constant manual oversight.

### Mechanism Behind the Rebalancer

The Rebalancer's effectiveness lies in its fully decentralised, automated process, which includes:

* Gathering and analysing APRs from a variety of sources to ensure up-to-date information.
* Computing the Efficient Allocation Model (EAM) using decentralised computation module by Chainlink Automation®, a calculation that identifies the optimal allocation of assets across various protocols. This includes considering the mathematics of each protocol and pre-calculating the potential impact of adding liquidity on the APR to ensure harmonization.
* Securely reallocating assets, according to the EAM, ensuring the liquidity is consistently optimized.

<figure><img src="/files/3SIOBq2z0gsC6dXWcTU0" alt=""><figcaption></figcaption></figure>

{% hint style="info" %}
Read more about the **mathematical approach** behind the Rebalance mechanism [here](/rebalance/how-it-works/chill-r-strategy/mathematical-approach.md)
{% endhint %}

### Emphasis on Risk Management

By adhering to a predefined [set of rules and parameters](/rebalance/risk-management/risk-mitigation.md), REBALANCE ensures that users'  funds is not just optimized for returns but also for minimizing risk of the integrated protocols.&#x20;

Future plans include the integration of a separate mathematical model to fine-tune the balance between risk and return, maximizing efficiency and safety in your investment strategy.
