Part 5/9:
Regularly rebalancing your investments is vital, especially before diverging too far from your target asset ratios. Implementing a framework like SMART rebalancing can help minimize divergence loss during this process. Essentially, rebalance by adjusting capital rather than swapping assets to maintain your desired ratios, which can help mitigate potential losses.
For example, if your position in the Ethereum to Syrup pool needs adjustment due to market movements, you might opt to introduce additional capital rather than exiting entirely. This approach can help preserve your overall position while adapting to market shifts.