Collateral asset values may change every day. As a result, collateralization levels will increase and decrease. The DRS continually checks the collateral health and transfers tokens between the collateral and reserve pools to maintain a consistent level of collateralization.
● If there are no mismatched amounts then no rebalancing is required.
● If the amount of collateral in the Collateral account exceeds the required amount, DRS executes a payment operation to return the excess collateral to the Token Reserve Pool.
● If the amount of collateral in the Token Collateral Pool is less than the required amount, DRS executes a payment operation to get the missing collateral from the Token Reserve Pool.