# Automated Delta Rebalancing Vault

Our Automated Delta Rebalancing Vault is built on top of Pseudo Market-Neutral Strategy in Single Finance. See details of Pseudo Market-Neutral Strategy [here](https://docs.singlefinance.io/home/yield-farming/single-click-strategy/mechanics-of-pseudo-market-neutral-strategy).

Whenever farmers think the Delta of their positions are too high or too low, they can manually click the "Rebalance" button to adjust Delta back to 0. See details of Position Rebalance [here](https://docs.singlefinance.io/home/yield-farming/single-click-strategy/feature-position-rebalance-on-pseudo-market-neutral-strategy).

The Automated Delta Rebalancing Vault helps users rebalance positions at optimal moments automatically, and optimize returns by minimizing losses from price effect / impermanent loss.

### The Challenge of Timing of Position Rebalancing

So the million dollar question is how to identify a good time to rebalance your positions, as the moment of rebalancing is a bit tricky to determine. After rebalancing the position, if the price of the non-stable coin returns to the original price when the position was last opened, you actually realize the impermanent loss caused by the temporary price fluctuation.

For example:

![](/files/TBUWO1VBGNGzIGwQBXLR)

The delta here is 0.05 when the price of FTM is $0.3216. Assume you click the "Rebalance" button now, the delta will be rebalanced to 0. The debt underneath will be rebalanced from "17238FTM + 2890USDC" to "18100FTM + 2613.45USDC".&#x20;

Once the price of FTM returns to $0.3539 (the original opening price), if you close the position at that moment, you will suffer from a realized loss because you are borrowing more FTM than before.

### The Purpose of Rebalancing Algorithm

Rebalance the position only when it meets the following requirements:

1. The price trend of the non-stable coin is going through tremendous changes&#x20;
2. The accumulated interest of one of the assets is too high and affect the delta too much
3. The leverage level is too high
4. The leverage level is under 2x for an extended period of time

Our AutoVault will help you detect the optimal moment of rebalancing and optimize your equity value.


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