Liquidity Rebalancing
Liquidity in the Reserve Bucket is auctioned through a Liquidity Allocation Vote and the protocol uses an off-chain solver auction model to rebalance liquidity.
On each bondIn(), the newly injected liquidity is allocated to pools in the Reserve Bucket in a certain ratio closer to the target ratio set through a Liquidity Allocation Vote.
Rebalancing liquidity in the reserve bucket is incentivised with the bribes paid by parties renting liquidity.
Bonding in when the pool weights are imbalanced yields a short-term opportunity to capture a split portion of the bribes earned by protocol.