USDC Auto-Rebalance Daemon

3 commands for automated USDC yield optimization across Aave V3, Compound V3, and Morpho on Base and Ethereum mainnet.

Pre-flight Checks

Every time before running any plugin-store command, always follow these steps in order. Do not echo routine command output to the user; only provide a brief status update when installing, updating, or handling a failure.

1. Confirm installed: Run which plugin-store. If not found, install it:

   curl -sSL https://raw.githubusercontent.com/purong-huang-1121/skills-store/main/install.sh | sh
   

2. Check for updates: Read ~/.plugin-store/last_check and compare it with the current timestamp:

   cached_ts=$(cat ~/.plugin-store/last_check 2>/dev/null || true)
   now=$(date +%s)
   

   • If cached_ts is non-empty and (now - cached_ts) < 43200 (12 hours), skip the update.
   • Otherwise, run the installer to check for updates.

Pre-Start Confirmation

IMPORTANT: Before executing auto-rebalance start, you MUST present the following summary to the user and ask for explicit confirmation. Do NOT start the daemon until the user approves.

Display a table like this:

Ready to start Auto-Rebalancer. Please confirm:

  Chain:           Base (8453)
  Interval:        300s (5 min)
  Min Spread:      0.50%
  Max Break-even:  7 days
  Protocols:       Aave V3, Compound V3, Morpho
  Telegram:        Enabled / Disabled
  Wallet:          0xf6e7...4572

  Gas threshold:   5 gwei (Base) / 50 gwei (Ethereum)
  TVL safety:      Emergency withdraw if TVL drops >30%
  State file:      ~/.plugin-store/auto-rebalance-state.json

Proceed? (y/n)

Key points to verify:

• Wallet address derived from EVM_PRIVATE_KEY — confirm it's the intended wallet
• Chain — confirm it matches user intent (Base vs Ethereum have very different gas costs)
• Interval — explain what it means in practical terms ("checks every X minutes")
• Min spread — lower = more frequent rebalancing; higher = fewer but more meaningful moves
• If wallet has idle USDC (not deposited in any protocol), the daemon will auto-deposit into the best protocol on its first cycle

Skill Routing

• For single-protocol Aave operations → use dapp-aave
• For Morpho vault operations → use dapp-morpho (CLI: plugin-store morpho)
• For grid trading → use strategy-grid-trade
• For prediction markets → use dapp-polymarket / dapp-kalshi
• For perpetual trading → use dapp-hyperliquid

Authentication

All commands require an EVM wallet private key (except stop and status):

EVM_PRIVATE_KEY=0x...

Optional — Telegram notifications (recommended):

TELEGRAM_BOT_TOKEN=...
TELEGRAM_CHAT_ID=...

All env vars can be set in cli/.env (auto-loaded via dotenvy).

Multi-Chain Support

Chain	ID	Gas Spike Threshold	Recommended Interval
Base	8453	0.5 gwei	300s (5 min)
Ethereum	1	50 gwei	3600s (60 min)

Base has low gas (~$0.001-0.05 gwei per tx, $0.01-0.03 cost), so shorter intervals and lower spread thresholds make sense. Ethereum gas is much higher ($1-5), so longer intervals and stricter thresholds are recommended.

Rebalance cooldown: Regardless of interval, the daemon enforces a 24-hour minimum between rebalances to prevent excessive trading from APY fluctuations.

Quickstart

# Base — low gas, check every 5 minutes, rebalance if spread > 0.3%
plugin-store auto-rebalance start --chain base --interval 300 --min-spread 0.3

# Ethereum — higher gas, check every hour, rebalance if spread > 1.0%
plugin-store auto-rebalance start --chain ethereum --interval 3600 --min-spread 1.0

# With Telegram notifications
plugin-store auto-rebalance start --chain base --interval 300 --min-spread 0.3 \
  --telegram-token <BOT_TOKEN> --telegram-chat <CHAT_ID>

# Check daemon status
plugin-store auto-rebalance status

# Stop daemon
plugin-store auto-rebalance stop

Command Index

#	Command	Auth	Description
1	auto-rebalance start	Yes	Start auto-rebalance daemon (foreground)
2	auto-rebalance stop	No	Stop running daemon via PID file
3	auto-rebalance status	No	Show daemon status and recent activity

CLI Command Reference

plugin-store auto-rebalance start

plugin-store auto-rebalance start [--chain <chain>] [--interval <seconds>] [--min-spread <pct>] [--max-break-even <days>] [--telegram-token <token>] [--telegram-chat <id>]

Param	Default	Description
--chain	base	Chain: base, ethereum
--interval	3600	Check interval in seconds (e.g. 300 = 5 min, 3600 = 1 hour)
--min-spread	0.5	Minimum APY spread (%) to trigger rebalance
--max-break-even	7	Maximum break-even days (gas cost / daily yield improvement)
--telegram-token	env	Telegram Bot API token (or TELEGRAM_BOT_TOKEN env var)
--telegram-chat	env	Telegram chat ID (or TELEGRAM_CHAT_ID env var)

Recommended configurations:

Scenario	Chain	Interval	Min Spread	Max Break-even
Active monitoring (Base)	base	300	0.3	14
Conservative (Base)	base	3600	0.5	7
Active monitoring (ETH)	ethereum	1800	0.5	7
Conservative (ETH)	ethereum	3600	1.0	3
Testing	base	60	0.1	9999

Daemon capabilities:

• Periodic yield checks across Aave V3, Compound V3, and Morpho
• Smart decision engine: Hold / Rebalance / Emergency Withdraw
• Auto-deposit: If wallet has idle USDC and no protocol position, deposits into the best protocol automatically
• Dynamic vault discovery: Morpho vault selection via GraphQL API — picks the highest APY vault with TVL > $100k
• TVL safety monitoring — median-based comparison triggers emergency withdraw if TVL drops >30%
• Gas spike circuit breaker — pauses when gas exceeds chain threshold
• Telegram notifications (🤖 Auto-Rebalancer) for all events
• State persistence at ~/.plugin-store/auto-rebalance-state.json
• PID management — prevents duplicate instances

plugin-store auto-rebalance stop

Sends SIGTERM to the running daemon via PID file (~/.plugin-store/auto-rebalance-daemon.pid).

plugin-store auto-rebalance status

Shows daemon status: running/stopped, config, current position (protocol + APY + balance), last check time, rebalance history.

Decision Logic

Each cycle, the daemon:

1. Fetch yields — queries Aave V3 (on-chain), Compound V3 (on-chain), Morpho (GraphQL). Falls back to DeFiLlama if on-chain fails.
2. Safety check — TVL tracking (median of recent vs earlier entries), gas spike detection.
   • TVL drop >20% → alert notification (non-blocking)
   • TVL drop >30% → emergency withdrawal
3. Detect capital — if in a protocol, reads protocol balance; if idle, reads wallet USDC balance.
4. Frequency guard — enforces 24-hour minimum between rebalances to prevent excessive trading.
5. Decide:
   • Emergency Withdraw — if current protocol's TVL dropped >30% (median comparison)
   • Hold — if gas spiking, cooldown active, already in best protocol, spread too small, or break-even too long
   • Rebalance — withdraw from current → deposit into best; or initial deposit from wallet if protocol=none
6. Execute — on-chain transactions (approve + withdraw + verify wallet balance + deposit + verify target balance), notify via Telegram.

Cross-Skill Workflows

Workflow A: Research → Start Daemon

1. plugin-store aave markets --chain base             → check current Aave rates
2. plugin-store morpho vaults --chain base            → see Morpho vault options
3. plugin-store auto-rebalance start --chain base ...     → let the daemon auto-optimize

Workflow B: Check Status → Manual Intervention

1. plugin-store auto-rebalance status                     → review position and PnL
2. plugin-store morpho positions <address> --chain base → verify on-chain state
3. plugin-store auto-rebalance stop                       → stop if needed

Workflow C: Multi-Chain

# Terminal 1
plugin-store auto-rebalance start --chain base --interval 300 --min-spread 0.3

# Terminal 2
plugin-store auto-rebalance start --chain ethereum --interval 3600 --min-spread 1.0

Note: each chain uses the same PID file, so only one daemon instance can run at a time. For multi-chain, run in separate terminals with separate working directories, or stop one before starting the other.

Key Concepts

• APY: All rates are APY (compound formula from on-chain rate per second × seconds per year).
• Break-even: Days for yield improvement to cover gas costs. Formula: gas_cost / (capital × spread% / 365). Lower = better.
• TVL monitoring: Tracks protocol TVL using median of recent vs earlier entries (not single-point comparison). A >20% drop triggers an alert; >30% triggers emergency withdrawal. History capped at 96 entries (~24h at 15min intervals).
• Gas circuit breaker: Base threshold 0.5 gwei, Ethereum 50 gwei. Exceeding pauses all trading.
• Rebalance cooldown: 24-hour minimum between rebalances, regardless of check interval. Prevents excessive trading from short-term APY fluctuations.
• Post-execution verification: After withdrawal, verifies wallet received USDC before proceeding to deposit. Aborts if wallet balance is zero.
• Yield sources: Aave V3 (lending pool on-chain), Compound V3 (Comet on-chain), Morpho (ERC-4626 vaults via GraphQL — dynamically discovers the best USDC vault with TVL > $100k).
• DeFiLlama fallback: If on-chain APY fetch fails, DeFiLlama pool data is used as fallback.
• Auto-deposit: When the daemon detects wallet USDC but no active protocol position, it deposits directly into the best-yielding protocol (deposit-only, no withdrawal step).

Edge Cases

Scenario	Behavior
All protocols same APY	Hold — no benefit to rebalancing
On-chain query fails	Falls back to DeFiLlama API data
Gas spike above threshold	Rebalance paused regardless of yield spread
Wallet has idle USDC, no position	Auto-deposits into best protocol on first cycle
Break-even too long	Hold — not worth the gas cost
Rebalanced recently (<24h ago)	Hold — cooldown enforced to prevent over-trading
EVM_PRIVATE_KEY not set	Error on start
Daemon already running	Start rejects with existing PID warning
No running daemon	Stop returns error
TVL drops 20-30% (median)	Alert notification sent, rebalancing NOT blocked
TVL drops >30% (median)	Emergency withdrawal to wallet
Post-withdraw wallet balance is 0	Rebalance aborted — supply step skipped to prevent loss
Morpho vault changes between cycles	Dynamic discovery — always picks highest APY vault
Chain switch (e.g. base → ethereum)	TVL history auto-cleared to prevent false alerts
TVL history exceeds 96 entries	Oldest entries trimmed automatically
RPC rate limiting (429)	Concurrent balance checks via tokio::join!, resilient to individual failures