---
# System prepended metadata

title: Research on Dynamic weights

---

# Research on Dynamic weights


## Task
To simulate a situation when there is an algorithm that can reallocate funds from one Vault to another one and simultaneously change weights in order to maximize APY of this basket.


## Objective
Propose an input signal for portfolio rebalancing (for example, TVL or dPrice of the Vault LP token based on accumulated interest), and demonstrate performance of static portfolio without any rebalancing strategy vs portfolio with dynamically adjusted composition according to proposed strategy

---

Portfolio is a linear combination of interest generating tokens, growing in value and the task is to maximize basket value. Also we have gas costs for rebalancing that we need to take into account.



### Ideas
1) Either to optimize for APY or for impermanent loss or both
2) Changing weights based on risk level and span for investing i.e. short to long
3) Optimize divergence between assets  





