Rebalancing

It is the process of aligning the weightage of a portfolio of assets that involves the purchase or selling of the assets periodically for maintaining a targeted level of asset allocation and risk. It can aid the investors to manage the downside risks while they are still participating in most of the upside. It can be more advantageous in DeFi as the process can be automated with the help of smart contracts and does not require to monitor your portfolio and also cross-check the value of your assets constantly against the stock market.