- Time: September 18th, 2021 at 2PM UTC
- Project name: Buffer
- Host: Kristen from BSC Army
- Guest speakers: Ric Feynman I Co-founder
- Part 1: Project overview
- Part 2: Security
- Part 3: Marketing Strategy
- Part 4: Community Q&A
1. Can you give a little introduction about yourself, what is your position and what is the vision of your project?
Ric Feynman: Hi Kristen and thank you for inviting me. I’ll start with introducing Buffer. So basically, Buffer finance is an optional trading platform that works on a peer-to-peer model. It means that it brings the option trading platform in centralized exchange to a decentralized model where anyone can buy options, not from option sellers but directly against the liquidity pool. For example, if you think that the BNB price is gonna rise or next week, you can just go to a portal and you can buy a call option and if it goes up you’ll get profits. That is how it works and you can buy directly against a liquidity pool so that anyone can become a liquidity provider just like PancakeSwap and other airmen. When someone buys an option against a liquidity pool, they have to pay a fee and that fee is distributed among all the liquidity providers. So that is how the protocol works.
Other than that there is a key token that is an integral part of the overall ecosystem. Anyone who holds a token can stake their tokens in our staking pools and they directly get a percentage of revenues, which is right now fixed at 50%. We distribute 50% of our revenues to all our stakers so that is the baseline of what we are doing.
In terms of the vision, we want to be a default option trading platform like right now we just provide support for BNB with time and we’ll be also adding Etherium, BTC and later stock options like for apple alphabet and amazon so anyone can buy a decentralized option for any asset around the world so it’s fully globally accessible.
2. What is your position in Buffer and how do you contribute to the project and how you got the idea for this whole project?
Ric Feynman: I am a co-founder of Buffer and I come from a technical and financial background. I have been working as a data scientist in one of the leading life insurance companies and then I went ahead and started trading stocks then cryptocurrencies and slowly options. My co-founder who is the technical co-founder as well for Buffer, we both discussed a lot of problems that right now centralized cryptocurrency exchanges have. For example, whereas most of the centralized option trading platforms have liquidity issues and also they’re too complex for retail investors. So we decided to build something that can be used by anyone without a lot of financial jargon and if they have any views about the future price of any asset they can make a profit out of it. From there we started building our Buffer and right now we are already on the test net fully functional and ready to go on mainnet within 15 days. Our idea is coming up on the 20th of September. Both of us have five more team members who take care of UX UI, front-end development, marketing, and community management. I specifically take care of business partnerships, product management, and also the financial part of the whole product. My co-founder takes care of the whole technical and product development part. So these are like basic responsibilities. In terms of the partnership, we have already had battery data on board and chain lock for providing price feeds that is the essential part for building any platform, and then we have a super launcher as our launchpad partner and lithium batteries who have invested in us. Also, we have recently done a strategic partnership with true pml which is an algorithmic trading bot so there is a high audience match with them. These are like key strategic partnerships and we are also working with crypto buddies to provide us crypto consultancy and crypto research.
Part 2: SECURITY
3. Can you tell us more about the upcoming idea of your Buffer and what are the details that the investors would like to know?
Ric Feynman: As we speak, the true ideal was started on 16th of September and they have already reached their target upcoming on 19th and 20th of September so 19th lithium ventures will be hosting our ideal. It will be starting at 2 pm UTC and 24 hours after that super launcher and we will be listed on pancake swap by 20th of September at 4 or 5 pm UTC. This is the overall timeline for the IDO and I guess for investors we can read through our documents by default like we are keeping the supply and market cap quite low so that we leave enough money on the table for investors right now the market cap is three fifty-two thousand dollars which is quite low compared to many projects that are launching and given the market size of options. So I guess the specific details like idiot idol price would be at 5 cents per token and the listing will be done at 7.5 cents so that’s a direct gain of 150 percent at the time of listing for all the ideal participants and post listing we’ll also be starting a staking pool where all the ideal participants can directly stick their $IBFR, which is a native token and directly own BNB. So that it would be launched immediately after IDO. so these are the basic specifications. Regarding detail vesting, we have already attached a document and anyone can join our telegram and our community managers will assist them related to all the questions they have.
Part 3: MARKETING STRATEGY
4. Do you have any private sales or like seed sales or public cell details and what is the vesting policy right?
Ric Feynman: For private sale, we have already closed. We raised about 150 000 dollars and for private sales, we kept the rest quite harsh. For example, the resting was five percent upfront and the remaining tokens will be released over 10 months. So this was done for a reason that the private sale was just at 1.2 cents and we’ve been listing it 7.5 cents and a direct gain of 6.25 x right where the vesting was a little harsh. For ideal participants, the westing would be 30 percent upfront and then there will be a cooldown period of 15 days in which the product will go on the main net and our staking pool will start immediately after we completed the idea and within 15 days the tokens will be released the idea tokens have been released over eight weeks. So the total listing will be done by the end of November last week.
5. What are the utilities of your $IBFR token like what can it be? What are your use cases for this native token?
Ric Feynman: One of the most important utilities of the $IBFR token is that it makes you the owner of the revenue of the protocol so if you hold $IBFR and you go and take it in a pool you will get 50% of the revenue that the protocol is right now making. That percentage over time might increase and that also will be decided by the $IBFR token holders through our governance proposal, right now it’s kept at 50%. For example, the revenue is directly four percent of the volume so typically seeing a volume of about a million dollars in a day you can expect about 40 000 dollars of fee being generated every day so kind of scales we are looking at if someone so 20 000 of that would be distributed among the stakeholders only. They will be just staking it and they’ll get 20 000 every day. These are like tentative numbers that we are expecting and the remaining twenty percent also will be used later on for buybacks and burns so we continuously keep decreasing the supply and the value of token keeps increasing.
6. Can you list at least three key points like three selling points for our audience right to convince the investors to invest in Buffer in the $IBFR token and maybe hold it for the long term?
Ric Feynman: So the first is the product line that we have over our options platform. As if I said that there’s an option platform where you can custom, build your own option, and buy something. That is very difficult to find in centralized exchanges and since there is no counterparty involved you can decide on what strike price and what option size you want to buy. But again we understand a lot of retail investors that do not understand the intricacies of options. So what we have introduced over our options platform is a prediction game and where you can just play it. It has a prediction game so you can just tell whether you think the DMV price will go up or down and place a bet and the second and the key product that we have insurance. So anyone can come and buy insurance against price fluctuations. For example, if you feel that the BNB price might fall you can buy insurance directly from our insurance pool, and if in case it does fall you will be paid the amount that you have lost so these are the key products from the investor perspective. So not just the utility of the overall product from the investor perspective, the key part is the token that we have kept. We have kept a very steady and slow release. At the same time, we have also made sure we start with a very low market cap so that the product slowly discovers its market cap and all that value goes to the investors. That price appreciation if it happens goes to the investors. The third and the main reason someone can invest for the long term is a revenue-sharing scheme where you can just buy hold back and stake and you will keep receiving BNB for a lifetime as a pace of income if there are enough users.
7. By those three points, a lot of users really turn their whole attention to Buffer and see what’s coming up next in the way so there are a lot of scam projects out in the market currently and a lot of them have faced rock balls. So do you have any system, audit system or security system that would guarantee the trust of your users and protect their wallets by investing in Buffer?
Ric Feynman: Buffer is the first security measure as it’s completely decentralized so there are no transactions that are recorded off-chain, all the options bought, sold, and exercised are maintained on-chain and there is no off-chain data like any decentralized exchanges that are quite popular. Second is we have extensively tested the whole protocol and already the code base is open source as well as we have a test net that has been tried by more than 3000 participants right now and it has been quite robust and in test BNB we have received about 2 700 BNB as liquidity. The third key part is we are getting it audited by a pec shield which is one of the best audit forms one of the BSC shield winners. So that process is underway and that’s where we are actually waiting to go on the main net. By the time they release our audit report, we’ll be ready to go and mean it.
8. Where are you on the road map right now achievements and what have you gained for yourself? And what are the next goals in maybe the last few months of this year and also for the next year as well?
Part 4: COMMUNITY Q&A
9. What kind of marketing strategies do you have in plan for Buffer and what kind of traffic; what kind of customers or users that you guys plan to hit on the most like you are targeting right now? What do you have to attract and grow the community globally?
Ric Feynman: We are working towards increasing the community, specifically engaging traders and speculators who basically have some viewpoint about future asset prices. In terms of marketing, we have engaged like influencers. Although we do want to keep it a lot towards organic marketing by producing more content and basically educating the users on how to use the protocol and how they can actually benefit it. Options trading is always much better than spot trading because it allows you to buy much bigger sizes of you basically and it allows you to take a position on much bigger sizes at a very smaller rate. Generally, you can buy a position over 10 BNB without actually owning 10 BNB. So that’s a very valuable thing that needs to be told to users and other than that we are also starting our affiliate marketing where anyone who buys through a referral link, whatever fee they pay, some percentage of that fee is directly given back to the referral so this is the network effect that we are working with. Also, our partners are the community. They basically have a community that has a direct audience match with us, for example, true piano which is quite popular in Turkey, Russia, and Europe. They have a trading bot so a lot of traders are using it who become direct audiences for an option trading platform as well as a super launcher. In terms of growth around the globe right now we just have a Vietnamese group so we support so we because Vietnam has been becoming one of the biggest cryptocurrency markets and investors are much more informed than other geographies, so we usually started with Vietnam and soon we will be also including Chinese and Turkish area Arabic groups so that’s the basic plan to partner and educate and support multiple geographies.
10. Holding $IBFR while becoming a liquidity provider allows investors to benefit from the project if investors with small capital should choose, so which way will bring more benefits?
Ric Feynman: Holding $IBFR and becoming a liquidity provider are two separate things or so what an investor with limited capital can do is they can become liquidity provider by providing liquidity in a pool against that what they will get is a $RBFR token which is kind of an LP token that you get in pancake swap. So this $RBFR token then can give you right over all the fee that we generate from the options fee right at the same time this $RBFRtoken can also be staked and you can earn $IBFR token and this $IBFR token can be further staked to earn revenue percentage. so it’s a good virtuous cycle that you can use to increase your APIs and right now it will be difficult to predict what the API is but the API will keep on increasing based on the volume we get
11. Limit order is the most current and handy feature that several topman platforms have lately adopted. Will Buffer finance implement this feature?
Ric Feynman: So we already have oracle in our platform. All the prices are coming from an oracle. We are using chain links for price feed so I guess that answers the question like there is no risk of being hacked because there is no data that is being provided by the admin. We are also as I told you being audited by one of the best audit firms out there so it’s quite safe to use the protocol I guess so where can our users where can our audience find this information? Is it on your website or on your whitepaper?
Information is available on the website as well as our white paper so on and also the test net is live so anyone who wants to actually try it out they can do that. We have a telegram group if they have any specific questions, they can come and ask the community managers.
12. Holding our tokens entitles you to a discount on the settlement fee required to place in the BNB price prediction game. What about other activities such as transactions?
Ric Feynman: Being an IBF token holder as I told you does not just get a revenue share. What you can also use it for is getting a discount over the settlement fee that the protocol charges from you to buy an option. Now the settlement fee is at four percent and an $IBFR holder will get it at a 50% discount although that feature is still under construction and will be launched after a few months of a maintenance launch. So that is another key utility that will be added to IBF or token.
Kristen: Can you go more into details like digging deeper into the price prediction game that you mentioned earlier. What are the benefits for users that participate in this activity?
Ric Feynman: So how price prediction works is basically you can do two things if you think that BNB right now is at 420 and you think after a week it might be at 480 dollars first and the most common thing that most of the investors will do is buy one BNB and hold it. So if it goes to 480 dollars and they sell it they will make 60 dollars per BNB. On the other hand in prediction games what a user can do is they can just say they believe that BNB will go up okay and they can place their bet so the bet would be at a certain multiplier which is much higher than a normal 60 dollar gain so far. For example, if you buy at 420 dollars you say BNB will go up next week by 60 dollars and you do not have to buy a BNB you just have to place a bet of 0.1 and if it does go up you get 60x of the return. so that multiplies your return by multiple percent. On the test net we have a payment payout so on net we have a payout calculator you can actually go there and while placing bets you can check how much ROI you will generate at a particular price point. so at 420 if you buy up at 410 every one dollar bet you will make ten dollars. So that’s how it works.
This is actually interesting. I’ve never heard of any kind of game like this before so you just basically put on a bet and if your guess was right, you get the benefits right so you do not have to hold BNB for that. You can just place a bet on the movement of rice that’s really interesting and the good part is it doesn’t require that BNB should increase. You can also buy a down bet so if BNB goes down you get the same ROI right so you can just predict up or down.
13. Why are bi-directional pools and no counterparty have a useful purpose? How can an imbalance between buying and selling be resolved?
Ric Feynman: So that’s quite an interesting question. By bi-directional pool, people can buy both up and down predictions directly against the liquidity pool right. If you’re buying something right you need a seller and if you do not have a seller, how will you buy. That’s a typical problem in most exchanges. You want to buy something but you won’t find any seller and that’s what we call illiquidity. On Buffer, there is no problem, you do not need a seller. The liquidity pool acts as a seller. The liquidity pool has to give it the profit if the buyer wins. Otherwise, if the buyer loses, the liquidity gets the yield and the fee that has been paid so basically the liquidity pool acts as a house for a betting system right. So there is no counterparty involved and mostly there is an edge for liquidity providers. It’s generally a 20-80 ratio like 20% of the time the buyer wins and 80 percent of the time the liquidity provider wins. and the prediction games keep on going without any entrance or bid a spread that is generally their many exchanges.
14. An exchange in addition to safety security and speed gas fee is a critical consideration therefore is a five percent settlement fee excessive.
Ric Feynman: So the thing is right now the settlement fee is at five percent and this settlement fee is the fee that we make as revenue and fifty percent of fit anyways goes to the $IBFR holders so that this settlement fee will be again put on our governance proposal if the $IBFR holders feel it’s too high they can vote and reduce it but at the same time this fee is what is getting shared with them. So that will be decided through votes what exactly it should be. The starting point will be five percent and if you feel it’s too high you can always buy $IBFR and participate in our governance and get it reduced.
Up to now, Buffer has had outstanding growth with an ever-expanding ecosystem, promising to thrive in the near future.
Disclaimers: Writers’ opinions are solely their own, and do not constitute any financial advice, investment advice, or trading advice.
BSC Army strongly recommends that you do your own research, and seek professional advice from a financial advisor where appropriate.