What Are the Technical Challenges in Programming Smart Contracts for Dynamic Capital Allocation?

One major challenge is the inherent complexity of creating contracts that can react to rapidly changing market conditions. This requires secure and reliable data feeds from oracles, which can be a point of failure.

Another issue is the high gas fees on some blockchains, which can make frequent rebalancing of assets prohibitively expensive. Additionally, ensuring the smart contract code is free of bugs and vulnerabilities is critical, as a flaw could lead to a complete loss of allocated funds.

Finally, the logic must be robust enough to avoid being manipulated by front-running or other MEV strategies.