Smilee v1

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. πŸ“ˆ Increased capital efficiency β€” high liquidity utilization, extreme leverage with no liquidations, and more.

  2. πŸͺ’ Composability β€” the ability to decompose just about anything related to volatility into Options and recompose them into more complex derivatives.

  3. πŸ€Έβ€β™€οΈ Flexibility β€” 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...

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