Rebalance pools

There should be a threshold and periodic rebalance of pools. BTC is 89% utilization and BNB is <2%. Isn’t this a risk for the protocol? I think there should be a mechanism to automatically trade some BNB for BTC.

I’ve been trying to reason it out for 15 minutes. What is the risk of a whale swapping all the BTC in the system leaving nothing to back the long positions? I can’t quite figure out what would happen, but I don’t imagine it being good.

Sorry for the late reply, we have implemented dynamic fees for the contracts that will be deployed on Arbitrum, fees will range from 0-0.4% depending on whether an action improves balance or reduces it.

For the current system, the assets are reserved for long positions, so it is not possible for assets required as backing to be swapped out.