Automated Rebalancer by shahthepro · Pull Request #2835 · OriginProtocol/origin-dollar

shahthepro · 2026-03-10T19:02:39Z

Code Changes

Add a new Safe Module RebalancerModule with methods to process deposits, withdrawals or both (in withdrawals -> deposits order). It will be replacing the existing AutoWithdrawalModule
Add a script for Rebalancer's core logic, Check readme file for the core logic
Add a hardhat tasks planRebalance that prints the optimal allocations and recommended actions
Add a Defender script that uses the Rebalancer to find recommended actions and execute it using the Module
Adds unit tests for the Module and the Rebalancer logic

Executing Hardhat task

$ npx hardhat planRebalance --network mainnet

> npx hardhat planRebalance --network mainnet

=== OUSD Rebalancer Status ===

Total rebalancable capital : 4,375,696.44 USDC
Withdrawal shortfall       : 0.00 USDC

--- Allocations ---

Strategy                        Current        Avail.         Target (rec.)   Delta  1h APY  Spot APY  Impact
-------------------------------------------------------------------------------------------------------------
Ethereum Morpho *  3,775,576.16 (86.3%)  1,685,960.71  3,775,576.16 (86.3%)   +0.00   4.47%     4.19%       —
Base Morpho          587,193.71 (13.4%)    336,733.85    587,193.71 (13.4%)   +0.00   4.35%     4.35%       —
HyperEVM Morpho        10,022.27 (0.2%)     10,022.52      10,022.27 (0.2%)   +0.00   4.82%     4.84%       —
Vault (idle)            2,904.30 (0.1%)             —       3,000.00 (0.1%)  +95.70       —         —       —
-------------------------------------------------------------------------------------------------------------
Total                      4,375,696.44
  * = default strategy

--- Actions for max APY ---

  DEPOSIT  $      487,098.01  to    Ethereum Morpho [Not recommended: post-impact spread -0.57% < min 0.50%]
  WITHDRAW $      587,193.71  from  Base Morpho [Not recommended: no approved deposits to fund]
  DEPOSIT  $      100,000.00  to    HyperEVM Morpho [Not recommended: post-impact spread 0.11% < min 0.50%]

--- Recommended Actions ---

  No actions required.

Pending Things

~~Monitoring: Discord Notifications~~ Done in d50c610

codecov · 2026-03-10T19:18:05Z

Codecov Report

✅ All modified and coverable lines are covered by tests.
✅ Project coverage is 51.66%. Comparing base (10b029e) to head (e10b3ea).
⚠️ Report is 3 commits behind head on master.

Additional details and impacted files

@@            Coverage Diff             @@
##           master    #2835      +/-   ##
==========================================
+ Coverage   49.21%   51.66%   +2.45%     
==========================================
  Files         112      113       +1     
  Lines        4844     4916      +72     
  Branches     1343     1362      +19     
==========================================
+ Hits         2384     2540     +156     
+ Misses       2456     2372      -84     
  Partials        4        4

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sparrowDom

Not done yet left comments inline

naddison36

I think we need to whitelist what strategies the RebalancerModule can automatically deposit/withdraw to/from. I'm mostly worried about AMO strategies being accidentally being called without a vault value checker.

sparrowDom

some more comments added

sparrowDom

Left some comments inline: This code is much easier to follow now. Thanks it is a great improvement

sparrowDom · 2026-03-23T16:58:49Z

+];
+
+// Return the action amount, capping cross-chain moves at the bridge limit
+const actionAmount = (a) => {


nit: maybe cappedAmount would be a better name

Done: b8c3299

sparrowDom · 2026-03-23T17:08:15Z

+    // All withdrawals are same-chain: freed USDC lands in the vault immediately,
+    // so withdrawals and deposits can be batched into a single transaction.
+    await executeTx(() =>
+      rebalancerModule.processWithdrawalsAndDeposits(


nit: the on-chain contract could have just the processWithdrawalsAndDeposits function exposed. And have empty arrays passed when there would be no deposits or no withdrawals.

That's a good point, the safe module already behaves that way when you call that processWithdrawalsAndDeposits method. Will drop the other two methods

It simplified the code even further, thank you: 4a0a253

sparrowDom · 2026-03-23T17:45:56Z

+  shortfall,
+  constraints
+) {
+  const totalRebalancable = strategies.reduce(


Should minDefaultStrategyBps be excluded from totalRebalancable?

I believe that'll complicate the script further. If we are subtracting that here, we should also subtract it from the defaultStrategy's balance when we query it. Otherewise, if the default strategy has less than the amount we subtract here, it might end with us having a few more conditional statements (like subtracting it from other strategies). I'm not sure if that's gonna work

sparrowDom · 2026-03-23T17:46:56Z

+/**
+ * Compute total capital minus reserved amounts (shortfall + minVaultBalance).
+ */
+function _computeDeployableCapital(


This code is much better readable from the last time. Great improvement 👍

sparrowDom · 2026-03-23T17:53:01Z

+
+  const sorted = [...strategies]
+    .filter((s) => s.address !== defaultStrategy.address)
+    .sort((a, b) => (targets[b.address].gt(targets[a.address]) ? 1 : -1));


So the sort mechanics here is to sort by the amount to be deposited. Would it make sense to sort by the APY strategy is earning instead?

Otherwise we might always deduct from the strategy having the largest amount deposited which might also be the one earning the highest APY.

I thought of doing it by APY at first. But then if we are allocating it by APY, the lower APY strategies will have less liquidity. So, it means that they may not have enough liquidity to fund from a single strategy. So, it'll involve multiple withdraws from lower APY strategy, which would only make it gas expensive

sparrowDom · 2026-03-23T22:33:34Z

+    .filter((a) => a.action === ACTION_DEPOSIT)
+    .sort((a, b) => b.apy - a.apy);
+
+  for (const c of deposits) {


nit: instead of c this could be named deposit

sparrowDom · 2026-03-23T22:35:52Z

+    }
+
+    const amt = c.delta.gt(budget) ? budget : c.delta;
+    budget = budget.sub(amt);


Shouldn't this budget subtraction happen after the additional if statement checks below that result in a continue? Budget is reduced even when the action can be invalidated by setting it to ACTION_NONE

Done: 12e5859

sparrowDom · 2026-03-23T22:58:50Z

+  const hasApprovedWithdrawals = result.some(
+    (a) => a.action === ACTION_WITHDRAW
+  );
+  if (!hasApprovedWithdrawals && shortfall.gt(0)) {


could it be that there are approved withdrawals that don't withdraw enough to cover the shortfall?

Right now, the rebalancer cannot directly move between strategies. So, if it has to move between strategies, it has to withdraw to Vault first and then to the other strategy (either in a single run or across multiple runs). So, if there's a withdraw action, it'll always cover the withdrawal shortfall

* Consider APY impact for deposits * Fix config issues * Bug fixes * Bug fix * bug fix * few more tweaks * Switch to using subsquid server * APY Impact solver * Fix available liquidity * Address CR comments

Add core logic and safe module

64a8c30

shahthepro requested review from clement-ux, naddison36 and sparrowDom as code owners March 10, 2026 19:02

shahthepro added 3 commits March 12, 2026 13:50

Update core logic

17c663b

Add defender action

38ebdb9

Rename methods, add readme file

923944d

shahthepro changed the title ~~[WIP] Automated Rebalancer~~ Automated Rebalancer Mar 12, 2026

shahthepro added 2 commits March 16, 2026 12:06

Push discord notification and rollup config changes

d50c610

Fix AMO balance

3754149

sparrowDom reviewed Mar 18, 2026

View reviewed changes

naddison36 requested changes Mar 18, 2026

View reviewed changes

sparrowDom reviewed Mar 18, 2026

View reviewed changes

Comment thread contracts/scripts/defender-actions/ousdRebalancer.js Outdated

Comment thread contracts/utils/rebalancer.js Outdated

Comment thread contracts/scripts/defender-actions/ousdRebalancer.js Outdated

shahthepro added 14 commits March 18, 2026 15:09

Merge branch 'master' into shah/auto-rebalancer

024277b

Add whitelist to module and a few code changes

d15d24e

tweaks to rebalancer

1de24f3

Refactor and simplify rebalancer

c649822

More refactor

614c9d8

Bug fixes

6cd5f76

prettify

54bc1d1

Cleanup

1ddc3ab

prettify

55d8f2d

Fix comment

7c0bcde

Add suspicious APY threshold

e0fe58b

Merge branch 'master' into shah/auto-rebalancer

8c5073c

Fix string comparison

cfe03d4

Merge branch 'master' into shah/auto-rebalancer

b93ed30

sparrowDom reviewed Mar 23, 2026

View reviewed changes

Merge branch 'master' into shah/auto-rebalancer

cb54213

shahthepro added 9 commits April 7, 2026 21:41

Consider APY impact for deposits (#2857)

ce3541c

* Consider APY impact for deposits * Fix config issues * Bug fixes * Bug fix * bug fix * few more tweaks * Switch to using subsquid server * APY Impact solver * Fix available liquidity * Address CR comments

Change column names and surface spot apy

eca4974

Merge branch 'master' into shah/auto-rebalancer

1465591

Add daily limit to RebalancerModule

c9b9779

Address CR comments

a4f7718

Change 0 behaviour

358d2f3

slither

bc30392

fix surplus bug and add more tests

bf24aa9

simplify code

4e6e456

clement-ux previously approved these changes Apr 9, 2026

View reviewed changes

shahthepro requested a review from naddison36 April 9, 2026 17:28

shahthepro added 2 commits April 11, 2026 20:41

Switch to using morpho-utils

a6329cf

Add withdrawal impact rules

5c56b1d

shahthepro dismissed clement-ux’s stale review via 5c56b1d April 12, 2026 04:16

shahthepro added 12 commits April 12, 2026 12:56

Add more tests

1940e2a

Simplify printed allocations

7ded512

Bump morpho-utils version

d9b5d1d

skip invoking contract in dry mode

7ba80e1

Fix columns in printed message

277842c

Bug fixes

6db029d

Add more tests

3431ad7

add more tests

0c5fc59

clean up code

c7e9bd1

fix discord message

581b37f

Fix discord message

06b42b3

cleanup code

e10b3ea

clement-ux approved these changes Apr 13, 2026

View reviewed changes

naddison36 approved these changes Apr 13, 2026

View reviewed changes

shahthepro merged commit 70c2c1c into master Apr 13, 2026
17 of 18 checks passed

shahthepro deleted the shah/auto-rebalancer branch April 13, 2026 08:50

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Code Changes

Executing Hardhat task

Pending Things

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