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Portfolio Rebalancing

Shift your exposure between assets while keeping a USDST position open.

How this maps to the app

In the current app, Borrow (sidebar, TRADE section) opens USDST vaults (CDP). Each collateral asset has its own vault with its own collateral, debt and health factor. Debt can't be moved between vaults, so rebalancing collateral means repaying in one vault and minting in another. See Mint USDST via CDP for the basics.

What You'll Use

Task Where in the app
See each vault's collateral, debt, Health Factor and stability fee Borrow → your vaults
Deposit, withdraw, mint or repay on one vault Borrow → vault actions
Swap between assets Trade
Buy GOLDST or SILVST at the oracle price Fund → Buy Metals

Costs: every transaction costs 0.01 USDST, or one voucher if you hold one, even if it reverts. An action that needs an approval plus the action itself costs 0.02 USDST. Swaps also pay the pool's swap fee and any price impact. See Transactions & Fees.

Rules That Decide the Order of Steps

These come from the CDPEngine contract. Parameter values differ per asset and can change, so read them in the app rather than relying on fixed numbers.

  • Collateralization ratio (CR) = collateral value at the oracle price ÷ debt (debt includes the accrued stability fee).
  • Withdraw while the vault has debt only if CR stays at or above the asset's minimum CR. Withdraw Max computes the largest such amount.
  • Mint only while current debt + new mint < collateral value ÷ minimum CR, and within the asset's system-wide debt ceiling.
  • Debt floor: a vault's debt must be zero or at least the asset's debt floor. A partial repay that would leave less than the floor reverts; use Repay All instead.
  • Liquidation is per vault, when CR falls below the asset's liquidation ratio. The app shows Health Factor = CR ÷ liquidation ratio; below 1.0 the vault can be liquidated.

Case 1: Rebalance Assets in Your Wallet

If the assets aren't locked in vaults, rebalancing is just trading.

  1. Go to Trade, choose the two tokens and enter an amount.
  2. The app quotes every pool that holds the pair (constant-product, stable, and each V3 fee tier) and auto-selects the best rate. Open the pool selector to pick a pool yourself.
  3. Check the price impact and slippage setting, then confirm.

For precious-metal exposure, Fund → Buy Metals mints GOLDST or SILVST through the MetalForge contract. You pay with a supported token and receive metal at the oracle price, less the mint fee shown in the app, up to a per-metal mint cap. MetalForge only mints. To sell metal tokens, swap them on Trade.

Case 2: Rebalance Vault Collateral With Debt Outstanding

Goal: reduce collateral in vault A (asset A) and build collateral in vault B (asset B) without closing your USDST position.

Work in small rounds so no vault's Health Factor drops below your own safety threshold:

  1. Review. On Borrow, note each vault's collateral, debt and Health Factor. Confirm asset B is offered as vault collateral and has pool liquidity on Trade.
  2. Repay part of vault A with USDST from your wallet. Lower debt frees collateral under the minimum-CR rule. Mind the debt floor.
  3. Withdraw the freed collateral from vault A, or use Withdraw Max.
  4. Swap A → B on Trade.
  5. Deposit B into vault B. If you want your USDST back, Mint USDST from vault B. Vault B's debt must meet its debt floor.
  6. Repeat steps 2–5 with the newly minted USDST until you reach your target mix.

If you have no spare USDST, start with a small Withdraw from vault A that keeps its Health Factor well above your threshold, then continue from step 4.

The Borrow page planner

The Mint form can split a new mint across several vaults, including deposits from your wallet. In auto mode it prefers vaults with lower stability fees, then vaults that already hold collateral, then vaults with more headroom, while keeping the target Health Factor you set with the slider. Switch off auto-allocation to set each vault's deposit and mint yourself. The planner adds collateral and debt only; it doesn't move existing debt between vaults.

After Rebalancing

  • Check every vault's Health Factor, not just the aggregate figure in the planner. Liquidation is per vault, so one weak vault can be liquidated while the aggregate looks fine.
  • Stability fees differ by asset. Moving debt to another vault changes what you pay.
  • Isolation limits, but doesn't remove, correlated risk. A drop in one asset only threatens that asset's vault, but assets that tend to move together will fall together.

Troubleshooting

Contract error Cause Fix
CDPEngine: below min CR The withdrawal would push CR under the minimum Repay first, or withdraw less
CDPEngine: repay leaves debt below floor; use repayAll Remaining debt would be under the debt floor Repay all, or repay less
CDPEngine: below debt floor The mint would leave vault debt under the floor Mint at least up to the floor
CDPEngine: debt ceiling exceeded The asset's system-wide debt cap is reached Mint from another vault
CDPEngine: insufficient collateral The mint exceeds the minimum-CR limit Deposit more, or mint less
High price impact on Trade Thin pool liquidity Split the trade, or choose a different pool in the pool selector

Next Steps

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