How to Build a Crypto Portfolio Rebalancer With Python

Based on the provided code snippets, here's a summary of how this decentralized finance (DeFi) rebalancing system works:

1. Initialization and Configuration:

   • The script starts by importing necessary modules and setting up environment variables.
   • It defines constants like DRIFT_THRESHOLD for determining when to trigger rebalance actions based on asset drift from target percentages.

2. Fetching Asset Information:

   • The function fetch_assets() retrieves information about the assets held in a portfolio, including their names, addresses, and chain IDs.
   • This data is crucial for identifying which tokens need to be sold or bought during the rebalancing process.

3. Calculating Drift:

   • The calculate_drift() function compares each asset's current value against its target percentage in the portfolio.
   • It calculates how much an asset needs to be adjusted (sold or bought) to bring it back within the acceptable drift threshold.

4. Determining Rebalance Actions:

   • Based on the calculated drift, calculate_drift() identifies which assets are over- or under-weighted relative to their target allocations.
   • For each asset that is out of balance by more than `DRIFT_THRESHOLD

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