[ 02 // HEGEMON ]

the vault reallocator.

HEGEMON is the reallocator. It moves vault capital between whitelisted Morpho markets along a utilization-targeting curve. Each market receives a score. The scores become target weights. A rebalance executes only when the change clears the churn floor. The bot simulates every move before it sends the move onchain.

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 bot normalizes the scores and applies a softmax (temperature SOFTMAX_T) to get target weights. The bell curve keeps capital where utilization is healthy: high enough to earn, low enough to exit.

bell (u) = e^{- {(\frac{u - 0.88}{0.05})}^{2}}

a (u) = \begin{cases} bell (u) & u < 0.92 \\ 0.4 \cdot bell (u) & 0.92 \leq u < 0.95 \\ 0 & u \geq 0.95 \end{cases}

a(u), the effective utilization attractiveness the scorer applies, rendered from the deployed constants: a bell centered on U0, cut to SAT_INFLOW_MULT inside the saturated band, and zero at U_CRIT.

CONSTANTS

PARAM	VALUE	MEANING
U0	0.88	Bell-curve peak utilization
SIGMA	0.05	Bell-curve width
U_OPT_LOW	0.78	Deposits never push a market below this level
U_SAT	0.92	Start of the saturated band; inflow is reduced
U_CRIT	0.95	Hard gate: no deposits at or above this level
EXIT_MIN	0.06	exitRatio floor for new deposits
EXIT_POWER	1.5	Convexity of the exit-safety penalty
SAT_INFLOW_MULT	0.4	Inflow multiplier in the saturated band
SOFTMAX_T	0.2	Softmax temperature over normalized scores
MIN_REALLOC_BPS_DELTA	25	Churn floor (bps of totalAssets per market)
CRIT_WEIGHT_RISK	0.25	Risk-lane trigger (assets in critical markets)
RISK_COOLDOWN_HOURS	2	Deposit cooldown after a risk-lane exit
LIQUIDITY_BUFFER_BPS	500	Floor kept in the liquidity market

The values on this page render directly from the strategy module the site runs on. They cannot differ from the deployed configuration.

GATES & COOLDOWNS

▸Deposits never push a market's utilization below U_OPT_LOW or above U_CRIT.
▸In the saturated band [U_SAT, U_CRIT), SAT_INFLOW_MULT reduces the inflow.
▸A market below the EXIT_MIN exit ratio receives no new deposits until it recovers.
▸After a risk-lane exit, the market goes on a deposit cooldown (RISK_COOLDOWN_HOURS).
▸A rebalance executes only when a market's weight change clears MIN_REALLOC_BPS_DELTA.
▸The bot keeps a liquidity buffer (LIQUIDITY_BUFFER_BPS of totalAssets) in a designated liquidity market. The liquidity market rotates only when a challenger beats the incumbent by LIQUIDITY_ROTATION_FACTOR.

$ man hegemon · this page in the terminal