[ 02 // HEGEMON ]

the vault reallocator.

HEGEMON is the reallocator. Each tick, it scores every whitelisted Morpho market, turns the scores into target weights, and moves vault capital toward them. A move executes only when it clears the churn floor and a market can absorb it. The bot simulates every move before it sends it onchain. Terms are defined in the glossary.

MARKET SCORE

utilScore = bellCurve(u; center=U0, width=SIGMA) // prefers u near U0

exitScore = clamp01(exitRatio) ^ EXIT_POWER // penalizes poor exits

score = netApy · utilScore · exitScore // per market, each tick

The bell keeps capital where utilization is healthy: high enough to earn, low enough to exit. A softmax over the normalized scores gives the target weights.

bell (u) = e^{- {(\frac{u - U_{0}}{σ})}^{2}}

a (u) = \begin{cases} bell (u) & u < U_{SAT} \\ m_{SAT} \cdot bell (u) & U_{SAT} \leq u < U_{CRIT} \\ 0 & u \geq U_{CRIT} \end{cases}

a(u), the effective utilization attractiveness the scorer applies, plotted from the deployed curve: a bell centered on U0 (width SIGMA), cut to m_SAT = SAT_INFLOW_MULT inside the saturated band, and zero at U_CRIT.

PARAMETERS

PARAM	UNIT	WHAT IT DOES
U0	%	Peak of the bell: the utilization the bot prefers
SIGMA	%	Width of the bell
U_OPT_LOW	%	Deposits never push a market's utilization below this
U_SAT	%	From here up to U_CRIT, inflow is cut by SAT_INFLOW_MULT
SAT_INFLOW_MULT	×	Inflow multiplier in the saturated band
U_CRIT	%	No deposits at or above. Withdrawals never push a market above it
EXIT_MIN	ratio	Below this exit ratio, a market gets no new deposits
EXIT_POWER	power	How hard a poor exit ratio cuts the score
SOFTMAX_T	temp	How sharply the weights favour the top scores
MIN_REALLOC_BPS_DELTA	bps	Churn floor: smaller moves are skipped
CRIT_WEIGHT_RISK	%	Assets in critical markets that trigger a withdraw-only plan
RISK_COOLDOWN_HOURS	h	No deposits into a market for this long after a risk exit
LIQUIDITY_BUFFER_BPS	bps	Share of the vault kept in the liquidity market for withdrawals
LIQUIDITY_ROTATION_FACTOR	×	A new liquidity market must beat the current one by this factor

The values are tuned per vault and are not published.

$ man hegemon · this page in the terminal