Solana DeFi Portfolio Rebalancer

A DeFi portfolio management system that automatically rebalances capital between different investment strategies based on performance metrics. Built on Solana using the Anchor framework.

Architecture

Core Components

1. Portfolio Management: Initialize and manage investment portfolios
2. Strategy Registry: Register strategies across different DeFi protocols
3. Performance Engine: Mathematical scoring system with weighted formula:
   • Yield Rate: 45% weight
   • Capital Balance: 35% weight
   • Inverse Volatility: 20% weight
4. Ranking System: Percentile-based ranking with dynamic threshold calculation
5. Capital Operations: Extract from underperformers, redistribute to top performers

Account Structure

• Portfolio: Main portfolio account with manager, thresholds, and totals
• Strategy: Individual strategy with performance metrics and protocol details
• CapitalPosition: Position tracking for different protocol types
• Multi-Protocol Support: Stable lending, yield farming, liquid staking

Mathematical Focus Areas

Performance Scoring Algorithm

Performance Score = (Normalized Yield × 45%) + (Normalized Balance × 35%) + (Normalized Inverse Volatility × 20%)

Protocol-Specific Extraction

• Solend: Simple balance withdrawal with utilization-based fees
• Orca: LP token withdrawal using AMM mathematics (x*y=k formula)
• Marinade: Unstaking with epoch delays and penalty calculations

Risk Management

• Dynamic threshold calculation based on portfolio volatility
• Diversification constraints (max 40% single strategy allocation)
• Mathematical safety with overflow protection throughout

Prerequisites

• Solana CLI: v1.18+
• Anchor Framework: v0.30.1
• Node.js: v18+
• Rust: Latest stable version

Installation

1. Clone the repository

git clone https://github.com/your-username/portfolio-rebalancer
cd portfolio-rebalancer

2. Install dependencies

npm install
# or
yarn install

3. Build the program

anchor build

Running Tests

Start Test Validator

# Terminal 1: Start Solana test validator
solana-test-validator

Run Tests

# Terminal 2: Run the test suite
anchor test --skip-local-validator

Expected Test Flow

The tests demonstrate the complete rebalancing workflow:

1. Initialize Portfolio - Create portfolio with manager and thresholds
2. Register Strategies - Add 3 strategies across different protocols
3. Deposit Capital - Fund strategies with test tokens
4. Update Performance - Set different performance metrics
5. Execute Ranking - Calculate scores and percentile rankings
6. Extract Capital - Remove funds from underperformers
7. Redistribute Capital - Allocate to top performers
8. Withdraw from Strategy - Demonstrate withdraw functionality

Key Instructions

Portfolio Management

• initialize_portfolio - Create new portfolio
• register_strategy - Add investment strategy
• deposit_to_strategy - Manager deposits funds
• withdraw_from_strategy - Manager withdraws funds

Performance & Rebalancing

• update_performance - Update strategy metrics and calculate scores
• execute_ranking_cycle - Rank strategies and identify rebalancing targets
• extract_capital - Remove capital from underperformers
• redistribute_capital - Allocate capital to top performers

Protocol Support

Stable Lending (Solend)

• Simple deposit/withdrawal mechanics
• Utilization-based fee calculation
• Minimum 0.1 SOL deposit requirement

Yield Farming (Orca)

• LP token position management
• AMM mathematics for proportional withdrawals
• Slippage and fee calculations
• Minimum 0.5 SOL deposit requirement

Liquid Staking (Marinade)

• Staking/unstaking with epoch delays
• Validator commission handling
• Penalty calculations for immediate unstaking
• Minimum 1 SOL deposit requirement

License

This project is for assessment purposes to demonstrate Solana development skills in DeFi portfolio management.