RMM and CPMM (Constant Product Market Maker, a.k.a Uniswap V.2) are AMM (Automated Market Maker), market-making strategies that automatically place orders for the investor. Mathematically, CPMM is a unique subset of RMM when, in RMM, the virtual assets equal 0, the balance ratio is 50%:50%, and the threshold is infinitely close to 0.
RMM provides much more advanced flexibility for users as they can set different balance ratios for the two different assets.
RMM enhances the efficiency of its asset usage by leveraging virtual assets.
The rebalancing mechanism is set up so that investors will buy low and sell high most of the time, thus generating a positive rebalancing premium.
Market makers can capture the rebalancing premium by setting a threshold on BIT RMM.