Description and risks regarding rebalance
A Rebalancer is a smart contract module designed to adjust the composition of the ALP Vault in response to the dynamic environment of the Arbitrum ecosystem. Given the rapid changes in this ecosystem, the assets within the ALP need to be adjusted frequently.
The operation of a rebalancer contract is straightforward. It receives funds from the vault, performs a specific operation with these funds, and sends back a different asset to the vault to complete the rebalance. Once its task is accomplished, the rebalancer contract deactivates itself, ensuring it only operates when necessary.
The addition of a rebalancer to the vault is a process governed by the multisig, requiring its approval before implementation. To ensure transparency and security, a 24-hour cooldown period is observed once the rebalancer is approved. During this period, everyone has the opportunity to review the code of the rebalancer as to whether it follows the specifications laid out above. This process is repeated for each required rebalance, with the code potentially varying according to different situations. As such, due to its temporary and changing nature, a rebalancer is not included in the audit scope.
An illustrative example of a rebalancer's operation would be as follows: it receives ETH from the vault via its fallback function, deposits this into the WETH contract, and immediately sends WETH back to the vault.