# Rebalancing

### Rebalancing the pool (from Concepts)

A trader that is bringing the scarce asset  scarce asset gets a better price than oracle (bonus) and the Trader TAKING the scarce asset gets a worse price (slippage). This ensures there is always an arbitrage incentive to return the pool to balanced

<figure><img src="/files/Zu5iwSdn07uJKDi2f0Wr" alt=""><figcaption></figcaption></figure>

since the NZDS is scarce in pool = overprice \
and the USDC is abundant = underpriced

a trader is incentivized to rebalance the pool...

(1) there is an arbitrage profit to collect by adding (selling) his NZDS for USDC (buying).&#x20;

(2) as an LP he will benefit from a balanced pool due to increased swap volume and fees.


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