automatic rebalancing
Very interesting. I want to know in more detail, how does it work?
Thank you for your question!
When the price of any token changes the indicated cost ratio in the smart contract is violated which creates a certain interest in arbitrage. A smart contract gives the opportunity for the arbitrator to exchange cheaper tokens for more expensive ones, thereby restoring the original proportions.
Due to the high competition among arbitrators, asset rebalancing occurs immediately as soon as the interest of the arbitrator exceeds the Ethereum transaction fee. It is the mutual benefit for the Holders and Arbitrators that guarantees the reliability of MultiToken!