Rebase Frequency

Rebase frequency determines how often the protocol calculates and executes the supply adjustment based on current price data. High-frequency rebasing allows the protocol to react quickly to market volatility, potentially keeping the price closer to the target.

However, frequent adjustments increase the computational overhead and may cause excessive friction for users who have to account for changing balances in their tax and accounting records. Low-frequency rebasing provides a more predictable experience but may allow the price to drift significantly from the target between adjustments.

Choosing the optimal frequency is a design trade-off between market precision and user experience. It impacts how the market perceives the asset's stability and influences the effectiveness of the underlying algorithmic policy.