> ## Documentation Index
> Fetch the complete documentation index at: https://docs.dojima.foundation/llms.txt
> Use this file to discover all available pages before exploring further.

# Liquidity Rebalancing

Solvers manage their own liquidity across multiple chains, but maintaining balance across dif-
ferent ecosystems is challenging. To prevent inactive liquidity buildup, solvers proactively generate
rebalancing intents, which are fulfilled by other solvers that need opposite liquidity shifts.

Example scenario: SolverX(Ethereum)has excess liquidity on Solana but wants to move it back to
Ethereum. Solver Y(Solana) has excess liquidity in Ethereum and wants to move it to Solana. Instead
of using bridges or external liquidity providers, Solver X and Solver Y fulfill each other’s rebalancing
intents, ensuring that both solvers retain liquidity within their own systems. This decentralized
liquidity rebalancing mechanism improves capital efficiency, prevents unnecessary fragmentation,
and reduces reliance on traditional liquidity bridges, which are prone to delays and security risks.

<img className=" h-full w-full" src="https://mintcdn.com/dojimanetwork/C6QxP2Ciapx3egY_/images/Rebalancing.png?fit=max&auto=format&n=C6QxP2Ciapx3egY_&q=85&s=cb60ea2147fb5e1c27fc3c14f55ce040" width="1986" height="1284" data-path="images/Rebalancing.png" />
