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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. Protocol Design

Vaults

Smilee protocol is based on two main contracts:

  1. Decentralized Volatility Products (DVPs).

  2. Earn Vaults.

At the smart contract level, the Earn Vault is simply called Vault.

Both DVPs and Earn Vaults are defined by:

  • A Reference Token (e.g. ETH, wBTC, …)

  • A Maturity Frequency (e.g. daily, weekly, …)

Impermanent Gain Earn Vaults

Earn Vaults provide the liquidity needed to mint and trade Impermanent Gain.

The Vault is divided into user shares which are represented by ERC20 Tokens.

The Vault replicates the payoff of a DEX Concentrated Liquidity position on the pair with a base token (typically USDC) and the reference token. The range is automatically selected using a multiple of the reference token volatility and it is auto re-balanced at maturity. To know more, please refer to the section: Payoff, APY & Performance.

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Last updated 11 months ago