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1. Real-Time Risk Assessment

  • Every 5 epochs, BRE recalculates all risk metrics.
  • Pools exceeding 80% utilization or high liquidation risk trigger rebalance signals.

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2. Automated Liquidity Redistribution

Reallocation Amount=(Target Utilization−Current Utilization)×Total DepositsCollateral Factor\text{Reallocation Amount} = \frac{(\text{Target Utilization} - \text{Current Utilization}) \times \text{Total Deposits}}{\text{Collateral Factor}}
Assets are reallocated from high-risk pools to low-risk pools to stabilize liquidity.

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3. Adaptive Yield Optimization

BRE dynamically adjusts incentive structures

Higher APY for low-utilization pools to attract deposits

Increased fees for high-risk pools to deter excessive borrowing

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4. Risk-Based Capital Constraints

If VaR exceeds predefined safety limits

S-Five triggers a cool-down mechanism, restricting new deposits into high-risk pools.