Smilee <> Kodiak Introduces the First Modular Automated Liquidity Management Vaults with IL Protection, Leveraged Sh*tcoins, & More
We’ve already established that Smilee is the Berachain Proof of Liquidity supercharger, and it just got better…
Smilee has teamed up with the chads at Kodiak, resulting in capital efficiency, robustness, and ease of use for degens & brotocols alike that simply cannot be found anywhere else.
Frankly, I’m having a hard time summing up the banger in a single sentence, so let’s just get into it:
First of all, Kodiak will be the first underlying Spot market powering Smilee’s novel Earn & Trade (Impermanent Gain) products on Berachain.
If you didn’t already know, Smilee runs on a proprietary synthetic engine meaning deposited funds remain in a stablecoin while mimicking the performance of the underlying asset which ultimately gets executed on a spot market.
Furthermore, atomic delta hedge & roll epoch swaps from Smilee will be made on Kodiak, consistently driving more volumes/fees to their DEX.
As Kodiak is set to be the premier on-chain AMM on Berachain, it’s only natural for Smilee to leverage its liquidity for blue chips & long-tail assets alike to offer a wide array of supported assets for Berachain users to trade derivatives.
This integration is merely the baseplate for the following creation…
Leveraged Sh*tcoins.
Not just leveraged shi*tcoins, but that was enough to increase your heart rate 69% with a smol half chub, admit it.
In all seriousness, Smilee will plug into Kodiak’s automated liquidity management vaults, ‘Islands’, to deliver the first-ever ALM vaults with Impermanent Loss protection via Smilee’s novel Impermanent Gain derivative. This innovation will empower:
- Projects to seed their (often volatile) new token launch OR migrate existing liquidity for well-established projects with a robust capital structure;
On the one hand,
- Offer a highly asymmetrically leveraged derivative for degens to trade a wide range of their favorite new & existing tokens;
On the other.
Let’s double-click on what this means for protocols & beras, and generally how it all works:
For Brotocols
The Kodiak <> Smilee ‘Islands’ are modular giving the freedom to protocols to determine their ideal strategy.
Some strategies may consist of:
- Downside (short delta) IL protection,
- Full (delta neutral) IL protection,
- Or simply incentivizing speculators to trade Impermanent Gain on the underlying asset offering high leverage & no liquidations.
They will vary on a vault-to-vault basis but offer protocols & their communities a customizable environment to meet their needs.
The fine details of potential strategies will be disclosed closer to launch. 🫡
For Beras
There are two key aspects that beras need to wrap their sticky paws around…
Liquidity Providing
Just as beneficial as it is for protocol-owned liquidity to benefit from sophisticated LP strategies thanks to Kodiak <> Smilee Islands, it will be for you too.
Best part is, it’s a 1-click solution, everything is automated for you! You’re no longer required to possess complex quantitative knowledge to unlock greater LPing potential.
Trading
Extreme leverage. No liquidations. Wide variety of assets.
Impermanent Gain is the most asymmetrically robust derivative in crypto, offering traders the ability to long, short, or delta-neutral with up to 1,000x (sometimes more) leverage & no liquidations!
Moreover, we’ve abstracted the complexities of trading options on our UI/UX making it extremely degen-friendly & simple to use regardless of whether you’re a giga-brained options trader or simply looking to punt something in the smoothest manner possible.
Conclusion
The Kodiak <> Smilee Islands (automated liquidity management vaults) will offer a modular stack of sophisticated liquidity-providing structures to benefit protocols & their communities for both liquidity & speculation purposes at an unprecedented level.
We look forward to sharing more about our partnership and what’s brewing in the kitchen as we get closer to launch!
For now, Smilee will soon be launching on Berachain Artio with exclusive access for our partner’s communities including Kodiak—click here to complete the Galxe quest to mint your access pass!
