Ditto Looper — Production-Ready PoC Design

Objective

Automate:

• Activation of pending deposits (wind into strategy).
• Deactivation/Rebalance of positions (shift capital to better pools or unwind if APY < 0).
• Withdrawal Queue Processing (safe unwinds when liquidity threshold is met).

Pipeline Rebalancing Automation

Trigger

• Cron job every 1 hour.
• Fetch pool data: supply APY, borrow APY, TVL, liquidity, historical APY.

Step 1: Opportunity Discovery

• Pools are predefined strategies (curated assets + protocols).
• For each (assetSupply, assetBorrow) combination:
  • Calculate supply APY, borrow APY, max LTV.
  • Simulate loops until APY boost < threshold (e.g. 0.2%).
  • Record optimal loop count N and estimated net APY.

Step 2: Independent Guard Checks

1. Minimum Pending Amount Check

   • Only activate if pendingAssets >= MIN_ACTIVATION_AMOUNT.

   def check_min_pending(pendingAssets, MIN_ACTIVATION=5000):
       return pendingAssets >= MIN_ACTIVATION
   
   

2. APY Improvement Check

   • Require ΔAPY > threshold compared to current vault APY.

   def check_apy_boost(newAPY, currentAPY, APY_THRESHOLD=0.2):
       return newAPY > currentAPY + APY_THRESHOLD
   
   

3. Time-Weighted APY Stability

   • Ensure APY over 24h/7d has not been volatile beyond X%.

   def check_apy_stability(historicalAPY, STABILITY_BAND=0.5):
       volatility = max(historicalAPY) - min(historicalAPY)
       return volatility <= STABILITY_BAND