MAMMALS

Lending risk-parameters

To regulate its deposit portfolio, REBALANCE employs two critical parameters:

  1. Maximum Allocation per Money Market (MAMM)

  2. Maximum Available Liquidity Share (MALS).

  • MAMM determines the largest portion of the REBALANCE pool that may be allocated to any single protocol. This limit promotes portfolio diversification and mitigates the risk of excessive dependence on any one protocol.

  • MALS defines the upper limit of REBALANCE's deposits as a percentage of a pool's total available liquidity. This precaution guards against liquidity risks, ensuring REBALANCE can always withdraw its deposits, even in scenarios where a pool's resources are fully leveraged.

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