Volatility vs Volume

People often compare providing liquidity on a DEX to selling options.

However, contrary to options sellers, DEX LPs are compensated with trading fees, directly monetizing DEX trading volumes and not implied volatility. But what if LPs actually sold volatility? This is what Smilee enables.

The result? More yield/better compensation for LP risk exposure—find in-depth breakdown below:

You can find the full research paper here

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