# Interconnectivity of Bundles via $BUN

The Bundles protocol connects bundles through $BUN's value and dynamics. Rebalancing fees, paid exclusively in $BUN, generate demand during adjustments. As $BUN's weight deviates from 5%, it influences thresholds across bundles, creating a network where one bundle's rebalancing affects others.

### **Core Mechanism: $BUN's Role in Adjustments**

The 5% $BUN allocation serves as an integrated reserve for rebalancing, allowing swaps without external markets. Activity, such as inflows, outflows, or volatility—shifts $BUN's value, prompting interconnected adjustments that stabilize the ecosystem.

#### **How Interconnectivity Functions in Practice**

1. **Rising $BUN Value**:
   * Bundles with excess $BUN (above 5%) sell it during rebalancing.
   * Proceeds to buy underperforming assets in the bundle or related ones.
   * **Effect**: Reallocates value from $BUN to undervalued assets, capturing recoveries across bundles.
2. **Falling $BUN Value**:
   * The threshold lowers dynamically, enabling earlier rebalancing.
   * Bundles buy $BUN to restore 5% weight, often at a discount, using overweight assets.
   * **Effect**: Creates buy-low opportunities, linking bundle recoveries via $BUN purchases.

In short, $BUN makes bundles work as a whole, using shared adjustments for stronger results. See the [Rebalancing Process](https://docs.bundles.fi/performance/rebalancing-strategy) for more details.


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