Low Liquidity Markets

💧 How AggreLend Handles Low Liquidity

Because AggreLend selects among multiple venues per token, there are situations where the top-quoted market has limited capacity or fast-changing utilization and cannot sustain its headline rate once filled at size.

To keep realized outcomes steady, the router:

• Evaluates liquidity health before any optimization.
• May allocate only a portion of a large balance into the top venue.
• May prefer the second-best venue when it offers more stability.
• Can split allocations across the top candidates so each leg sits inside a healthy capacity band.

This approach reduces immediate rate decay and helps preserve the usefulness of the displayed APY as a reliable predictor of what the position will actually earn.

Stability by Design

This stability-first bias is intentional:

• Rather than chasing brief spikes that collapse when deposits arrive, the router waits for a short confirmation window.
• It checks for basic signs of rate reliability before making changes.
• Users do not need to take any action — the routing logic handles these checks automatically.

Optimizations occur only when the router expects a better result than staying put, using an atomic optimization sequence that guarantees positions remain safe and consistent.

By prioritizing durable rates over fleeting spikes, AggreLend ensures your returns are predictable and closely aligned with what the interface displays.

🔄 Continuous Re-Evaluation

When market conditions change, the interface updates automatically and the router evaluates liquidity again on its next cycle.

This ensures that allocations remain aligned with what is achievable in practice, not just what’s theoretically quoted at zero utilization.