Homeostasis is the state of steady internal, physical, and chemical conditions maintained by living systems. This is the condition of optimal functioning for the organism and includes many variables, such as body temperature and fluid balance, being kept within certain pre-set limits. Homeostasis refers to stability, balance, or equilibrium within a cell or the body. ... Homeostasis can be thought of as a dynamic equilibrium rather than a constant, unchanging state. Feedback Regulation Loops. The endocrine system plays an important role in homeostasis because hormones regulate the activity of body cells.