Buffer Finance – Gamified Options Trading and More

The protocol allows users to buy options against assets without the need of a counterparty.

Introducing Buffer Finance

Buffer Finance is a gamified options trading protocol operating on multiple blockchains. Buffer offers a unique peer-to-pool approach to options trading where they execute all their trades against Liquidity Pools (LPs). Users who add liquidity to these pools are then rewarded with yields from the premiums paid by options traders.

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The Need For Derivatives

According to Investopedia, derivatives trading makes up the largest financial market in the world. Derivatives are popular because they help mitigate risks involved when trading.

Every financial trade involves a form of risk, as no asset is guaranteed to maintain the value originally detailed at the time of trade. Derivatives trading (such as options) allows traders to hedge their risk potential by setting limits for possible gains and losses.

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The DeFi Derivatives Problem

The Decentralized Finance (DeFi) derivatives market has not quite caught up to traditional finance. According to Opium Protocol’s Andrey Belyakov, derivatives trading significantly outweighs other ratios.

“In any significant financial system, the typical market size ratio between money/debt/derivatives is 1/10/100,” Belyakov explains in a Medium blog post.

Belyakov goes on to note that currently this market size ratio is not represented in DeFi. He explains this dissonance by the overall maturity of investors, claiming that many crypto investors are not as aware of the risks associated with trading.

This lack of awareness stems from a handful of factors. The crypto trading market is filled with investors who are new to financial transacting. Many investors in crypto are simply unaware of how more complex trading such as derivatives is executed due to a lack of understanding the underlying mechanics.

Besides this, derivatives-enabled DeFi markets are far from abundant. The money/debt ratio is short because there simply are not enough accessible options for users. Many of the options that do exist have issues with liquidity, making trading inefficient and non-substantial. In particular, BNB-based options often struggle with illiquidity, rendering them unpopular to investors. 

Buffer Has a Solution

This is where Buffer Finance plans to make a difference. By backing their options trading execution with LPs, Buffer ensures there is always liquidity to perform the requested trade option. Buffer offers customized strike prize, option size, and expiry date to customize each trade based on user viewpoint. 

Buffer has also solved the issue of inexperience by gamifying the trading. Users can play a predictions game where they select a price they believe an asset will land at by a certain time and date. This simplifies the process, eliminating the need to master complex trading factors whilst simultaneously adding entertainment for users.

Buffer Tokenomics

Token Ticker: $iBFR

Total Supply: 100,000,000

Type: BEP-20

Decimal: 18

Market Caps

Initial Market Cap: $352,000 (4.7%)

Seed Sale Price: $0.012

Seed Sale Fully Diluted Market Cap: $1.2M

IDO Price: $0.05

IDO Fully Diluted Market Cap: $5M

IDO-Listing Price: $0.075

IDO-Listing Fully Diluted Market Cap: $7.5M

Distribution

The token distribution is evenly balanced, helping to maintain the value and supply of $iBFR. Buffer has planned a quality mix of token allocation release as well as holder incentives to help maintain continuous growth and valuation.

$rBFR

From the Buffer Finance Docs:

$rBFR are the write tokens that are minted for Liquidity providers against the provided Liquidity. There is a separate $rBFR token for every liquidity pool.

$rBFR tokens give LPs right over the fee generated by writing options and the net pay-off of all the options sold against the pool, they can burn the write tokens and take back the provided liquidity plus earned yield after a lock-in period of 14 days. 

Key Tokenomics Features

Revenue Share – Users can stake $iBFR to receive a constant stream of passive income, incentivizing long-term holding which will increase the value of the token.

Liquidity Mining – Users can earn yield by staking $iBFR LP pair tokens, further increasing passive income potential.

Deflationary – Milestone-based buybacks and manual burns help to maintain token deflation. This helps mitigate potential volatility, ensuring that there is never an overabundance of $iBFR.

Governance – After Q1 in 2022, all protocol feature releases and decisions will be governed by $iBFR holders. This maintains decentralization of the network as well as incentivizing holding of the token, further increasing its value.

Discount – Users that hold $iBFR tokens get a discount over the settlement fee required to place a bid in the BNB price prediction game. This encourages both $iBFR holding as well as participation in the protocol’s main feature as of this time.

Upcoming Initial Dex Offering (IDO)

Buffer will soon hold their IDO on SuperLauncher, Lithium Ventures and TruePnL. The details for each sale are as follows:

SuperLauncher

Date/Time: September 20th, 2021, 02:00 PM UTC

Hard Cap: $300,000

IDO Supply: 6,000,000

Private Round: 14:00-14:30 UTC

Public Round: 14:30-15:00 UTC

Snapshot: September 19th, 2021, 02:00 PM UTC

Geo-restrictions: United States

Lithium Ventures

Date/Time: September 19th, 2021, 02:00 PM UTC 

Hard Cap: $150,000

IDO Supply: 3,000,000

TruePnL

Date/Time: September 16th, 2021, 19:30 GMT

Sale Ends: September 19th, 19:30 GMT

Hard Cap: $50,000

IDO Supply: 1,000,000

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Source : bsc.news