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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