diff --git a/contracts/margined_insurance_fund/src/handle.rs b/contracts/margined_insurance_fund/src/handle.rs
index 1fceceda..84169952 100644
--- a/contracts/margined_insurance_fund/src/handle.rs
+++ b/contracts/margined_insurance_fund/src/handle.rs
@@ -80,7 +80,9 @@ pub fn shutdown_all_vamm(deps: DepsMut, env: Env, info: MessageInfo) -> StdResul
         msgs.push(execute_vamm_shutdown(vamm.clone())?);
     }
 
-    Ok(Response::default().add_submessages(msgs))
+    Ok(Response::default()
+        .add_submessages(msgs)
+        .add_attributes(vec![("action", "vamm_shutdown")]))
 }
 
 pub fn withdraw(
diff --git a/contracts/margined_vamm/src/contract.rs b/contracts/margined_vamm/src/contract.rs
index 853fa07a..3b8235bb 100644
--- a/contracts/margined_vamm/src/contract.rs
+++ b/contracts/margined_vamm/src/contract.rs
@@ -11,8 +11,8 @@ use margined_common::{
 };
 use margined_perp::margined_vamm::{ExecuteMsg, InstantiateMsg, QueryMsg};
 
-use crate::error::ContractError;
 use crate::querier::{query_underlying_price, query_underlying_twap_price};
+use crate::{error::ContractError, handle::rebase_vamm};
 use crate::{
     handle::{set_open, settle_funding, swap_input, swap_output, update_config, update_owner},
     query::{
@@ -170,6 +170,7 @@ pub fn execute(deps: DepsMut, env: Env, info: MessageInfo, msg: ExecuteMsg) -> S
         ),
         ExecuteMsg::SettleFunding {} => settle_funding(deps, env, info),
         ExecuteMsg::SetOpen { open } => set_open(deps, env, info, open),
+        ExecuteMsg::RebaseVamm {} => rebase_vamm(deps, info, env),
     }
 }
 
diff --git a/contracts/margined_vamm/src/handle.rs b/contracts/margined_vamm/src/handle.rs
index aed6748c..51579f7f 100644
--- a/contracts/margined_vamm/src/handle.rs
+++ b/contracts/margined_vamm/src/handle.rs
@@ -9,7 +9,7 @@ use crate::{
     contract::{
         ONE_DAY_IN_SECONDS, ONE_HOUR_IN_SECONDS, ONE_MINUTE_IN_SECONDS, ONE_WEEK_IN_SECONDS, OWNER,
     },
-    querier::query_underlying_twap_price,
+    querier::{query_underlying_price, query_underlying_twap_price},
     query::query_twap_price,
     state::{read_config, read_state, store_config, store_state, Config, State},
     utils::{
@@ -129,6 +129,37 @@ pub fn set_open(deps: DepsMut, env: Env, info: MessageInfo, open: bool) -> StdRe
     Ok(Response::new().add_attribute("action", "set_open"))
 }
 
+// This function will rebase the vamm according to the current oracle price
+pub fn rebase_vamm(deps: DepsMut, info: MessageInfo, env: Env) -> StdResult<Response> {
+    let config: Config = read_config(deps.storage)?;
+    let mut state: State = read_state(deps.storage)?;
+
+    if !OWNER.is_admin(deps.as_ref(), &info.sender)? {
+        return Err(StdError::generic_err("unauthorized"));
+    }
+
+    let oracle_price = query_underlying_price(&deps.as_ref())?;
+
+    // let P be oracle price, Q and B_old be current quote and base asset reserves
+    // B_new is the final base_asset_reserve we want.
+    // Current price is Q / B_old, P = Q / B_new
+    // Therefore B_new = Q / P
+
+    state.base_asset_reserve = state
+        .quote_asset_reserve
+        .checked_mul(config.decimals)?
+        .checked_div(oracle_price)?;
+
+    store_state(deps.storage, &state)?;
+
+    Ok(Response::new().add_attributes(vec![
+        ("action", "rebase_vamm"),
+        ("vamm", env.contract.address.as_ref()),
+        ("new_base_asset", &state.base_asset_reserve.to_string()),
+        ("new_price", &oracle_price.to_string()),
+    ]))
+}
+
 // Function should only be called by the margin engine
 pub fn swap_input(
     deps: DepsMut,
diff --git a/contracts/margined_vamm/src/testing/get_price_tests.rs b/contracts/margined_vamm/src/testing/get_price_tests.rs
index 203bc0b9..02bf5b11 100644
--- a/contracts/margined_vamm/src/testing/get_price_tests.rs
+++ b/contracts/margined_vamm/src/testing/get_price_tests.rs
@@ -2,8 +2,9 @@ use crate::contract::{instantiate, query};
 use crate::handle::{get_input_price_with_reserves, get_output_price_with_reserves};
 use cosmwasm_std::testing::{mock_dependencies, mock_env, mock_info};
 use cosmwasm_std::{from_binary, Uint128};
+use cw_multi_test::Executor;
 use margined_perp::margined_vamm::{Direction, InstantiateMsg, QueryMsg, StateResponse};
-use margined_utils::scenarios::to_decimals;
+use margined_utils::scenarios::{to_decimals, SimpleScenario};
 
 /// Unit tests
 #[test]
@@ -329,3 +330,31 @@ fn test_get_input_and_output_price_with_reserves() {
     .unwrap();
     assert_eq!(result, to_decimals(600));
 }
+
+#[test]
+fn test_rebase_vamm() {
+    let SimpleScenario {
+        mut router,
+        owner,
+        vamm,
+        pricefeed,
+        ..
+    } = SimpleScenario::new();
+
+    let spot_price = vamm.spot_price(&router).unwrap();
+    assert_eq!(spot_price, to_decimals(10u64));
+
+    let price: Uint128 = Uint128::from(20u128);
+    let timestamp: u64 = 1_000_000_000;
+
+    let msg = pricefeed
+        .append_price("ETH".to_string(), price, timestamp)
+        .unwrap();
+    router.execute(owner.clone(), msg).unwrap();
+
+    let msg = vamm.rebase_vamm().unwrap();
+    router.execute(owner.clone(), msg).unwrap();
+
+    let new_spot_price = vamm.spot_price(&router).unwrap();
+    assert_eq!(new_spot_price, Uint128::from(20u64));
+}
diff --git a/packages/margined_perp/src/margined_vamm.rs b/packages/margined_perp/src/margined_vamm.rs
index 9f0f1ae5..d9073d7f 100644
--- a/packages/margined_perp/src/margined_vamm.rs
+++ b/packages/margined_perp/src/margined_vamm.rs
@@ -62,6 +62,7 @@ pub enum ExecuteMsg {
     SetOpen {
         open: bool,
     },
+    RebaseVamm {},
 }
 
 #[derive(Serialize, Deserialize, Clone, Debug, PartialEq, Eq, JsonSchema)]
diff --git a/packages/margined_utils/src/contracts/helpers/margined_vamm.rs b/packages/margined_utils/src/contracts/helpers/margined_vamm.rs
index c21d8309..7b5b417f 100644
--- a/packages/margined_utils/src/contracts/helpers/margined_vamm.rs
+++ b/packages/margined_utils/src/contracts/helpers/margined_vamm.rs
@@ -61,6 +61,11 @@ impl VammController {
         self.call(msg, vec![])
     }
 
+    pub fn rebase_vamm(&self) -> StdResult<CosmosMsg> {
+        let msg = ExecuteMsg::RebaseVamm {};
+        self.call(msg, vec![])
+    }
+
     pub fn set_toll_ratio(&self, toll_ratio: Uint128) -> StdResult<CosmosMsg> {
         let msg = ExecuteMsg::UpdateConfig {
             base_asset_holding_cap: None,