📖
IG On Arbitrum
  • Smilee On Arbitrum
  • Past & Present
    • Smilee v0
    • Smilee v1
    • Smilee v1.69 (current)
  • IMPERMANENT GAIN
    • What are Options?
    • Impermanent Loss & Options
    • Understanding Delta Hedging
    • 📈Trade
      • User Guide
      • Bull, Bear, Smile
      • Initial Price, Breakeven, Expiry
      • Impermanent Gain Pricing
      • Impermanent Gain vs. Vanilla Options
    • 💰Earn
      • User Guide
      • Payoff, APY & Performance
      • Volatility vs Volume
  • Protocol Design
    • Overview
    • DVPs
    • Vaults
    • Liquidity-to-Volatility Engine
    • Synthetic AMM
    • Delta Hedging
    • Maturities & Epochs
    • Fees
    • Oracles & Risks
    • Decentralization Roadmap
  • RESOURCES
    • Smilee FAQs
    • Smart Contracts
    • Media Kit
    • Audits
    • Bug Bounties
  • Developer Documentation
    • Introduction
    • How to Execute a Trade
    • Retrieving DVP Data
    • Read Value of an IG Position
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  1. Past & Present

Smilee v1

PreviousSmilee v0NextSmilee v1.69 (current)

Last updated 1 year ago

After months of research, we switched to custom synthetic engine, allowing to create any type of volatility-based payoff through mathematics.

The biggest benefits of this upgrade were:

  1. 📈 Increased capital efficiency — high liquidity utilization, extreme leverage with no liquidations, and more.

  2. 🪢 Composability — the ability to decompose just about anything related to volatility into Options and recompose them into more complex derivatives.

  3. 🤸‍♀️ Flexibility — swift & seamless integration of a wide range of assets regardless of their token type & mechanics.

As you might already know, the first two products we rolled out for Smilee are:

  1. Real Yield (short volatility): provide DEX-like liquidity to earn yield in the form of $USDC.

  2. Impermanent Gain (long volatility): turning Impermanent Loss into Impermanent Gain with up to 1000x leverage without liquidations.

Although Smilee v1 was indeed a revolutionary project, it had some limitations:

  • Being built on the CFAMM model, it wasn't capital efficient enough.

  • Traders had to wait until Vaults expiry to exercise their IG.

So we listened to feedback and decided to further improve the product...