Smart Rebalancing

Smart Rebalancing is one of Monarch's best portfolio tools for active lenders.

Instead of manually moving funds market by market, you choose the markets you want included, set your limits, and let Monarch build the optimized rebalance plan for you.

That means you stay in control of the constraints, while Monarch handles the planning.

The idea

The workflow is simple:

• choose the markets you want included
• set any per-market max allocation limits you care about
• let Monarch compute the plan
• execute the batched transaction if the result looks good

This is useful because the hard part is often not signing the transactions — it is deciding how to reallocate efficiently across several markets at once.

What Monarch shows you

Smart Rebalancing is not just "trust the algorithm". The UI gives you meaningful stats so you can judge whether the plan is worth doing.

From the current frontend, the plan surfaces things like:

• total amount moved
• fee estimate
• whether the fee cap is active
• estimated daily earnings impact
• projected allocation changes across included markets

Fee model

The current smart rebalance fee configured in the frontend is:

• 0.003% (0.3 bps)
• capped at $5 per transaction when the USD cap can be applied

That cap matters because it keeps larger one-click rebalances from scaling linearly forever.

Why the limits matter

The most important user input is not "which button do I click". It is the limits you choose.

Those limits shape the optimizer.

If you set a max allocation on a market, Monarch treats that as part of the rebalance problem. So Smart Rebalancing is best thought of as:

optimization inside your boundaries

not as full surrender of decision-making.

When to use it

Smart Rebalancing is most useful when:

• you already know which markets you are comfortable using
• you want to improve allocation efficiency without manually sequencing many actions
• you want a faster way to rebalance around yield changes while still keeping explicit limits in place

In short: you define the guardrails, Monarch does the heavy lifting.