Options trading, which has long been an integral part of traditional finance, is gradually gaining popularity in the blockchain community in recent years. DeFi exchanges are in the race to try and catch up with the rising demand for crypto options trading, a race where Buffer Finance is making its appearance known.
Buffer Finance is a non-custodial gamified options trading protocol operating on BSC. It is similar to an Automated Market Maker and endorses the peer-to-pool approach to options trading where traders can create, buy, and settle options against a liquidity pool without needing a counterparty (option writer).
Customized to the intense volatility of crypto markets, Buffer is a pioneer project catering to individual investors in search of DeFi derivatives, whether to maximize their profit, hedge potential risks, or simply seek the thrill of betting against the market. This platform potentially presents a once in a life-time opportunity to get early exposure to crypto derivatives and yield high returns when this niche market inevitably expands.
Buffer Finance is currently in the Testnet phase with more than a thousand participants.
An increase in derivatives limitations on centralized exchanges and a capital boom in crypto means that macro-trends are in favor of crypto derivatives products. According to Lennix Lai, director of Financial Markets at OKEx, institutional traders are dominating the current options market. However, he anticipates a rise in retail options trading over 2021 as more tailored products emerge and DeFi derivatives are estimated to soon be worth 400 billion USD. As mass adoption unfolds, the DeFi options market can grow at lightning speed, witness a big surge of inflow of capital and resources, and usher in a new and exciting crypto derivatives era.
Retail traders are paying more attention to crypto options and are looking for trustworthy decentralized options protocols that offer high liquidity and safety. Meanwhile, crypto options are traded in only 1/70th of the volume of traditional options, which indicates that there is a huge market potential yet to be unleashed. In combination with the DeFi competition steadily getting fiercer, Buffer aims to become a more innovative exchange platform.
On Buffer, seasoned crypto traders can mitigate losses and adorn their well-established crypto portfolios, while crypto beginners who have yet to fully comprehend DeFi derivatives can participate in the options trading ecosystem on BSC by buying and holding their perpetual revenue-sharing token ($iBFR), or becoming a liquidity provider and earn yield over holdings.
Specifically, users can:
– buy $iBFR token and hold or stake to earn rewards, as well as vote for future platform features or burn to participate in milestone-based buybacks.
– become liquidity providers and earn yield over their BNB, WETH, and WBTC holdings on BSC with more BEP-20 tokens coming soon.
– buy customizable options by customizing strike prize, option size, and expiry date
– participate in prediction games, which is a unique feature on Buffer, by predicting BNB’s price movement to buy options as trading is much less about strategy and more about psychology and mindset.
Buffer provides crypto options traders what they desire through a wide range of analytics, high leverage, and insurance.
There are insurance funds for launch pads and service providers with a significant amount of BNBs as claims. Speculators can participate in BNB price prediction games by betting on price fluctuations by simply paying a betting fee against a liquidity pool without the need of a counterparty. Traders can freely buy Put or Call options according to their positions on BNB or trade customizable options based on their viewpoint of BNB price movement.
Buffer prioritizes the community and wishes to build customer trust by vocalizing its mission to make derivatives trading accessible to everyone and distribute 100% of protocol fee among all token holders. Its work is made completely public and is audited multiple times by high quality auditors to ensure transparency. Buffer promises to focus on constant innovation and become environment friendly as BSC transactions are faster and produce less carbon footprint.
Buffer Finance has two tokens.
1. iBFR Token: this is the native token of the platform.
Token name: iBuffer
Token ticker: $iBFR
Network: Binance Smart Chain
Total Supply: 100,000,000
– Revenue share: Users can stake $iBFR to receive a constant stream of passive income which encourages long-term holding.
– Liquidity mining: Users can earn yield by staking $iBFR LP pair tokens.
– Deflationary: The platform implements milestone-based buybacks and manual burns to maintain token deflation, which reduce potential volatility and keep the quantity of $iBFR under control.
– Governance: Post Q1 2022 protocol feature releases will be governed by $iBFR token holders.
– Discount: $iBFR token holders get a discount over the settlement fee required to place a bid in the BNB price prediction game. This incentivizes $iBFR holding and user participation in the game.
rBFR Token: $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 $iBFR and take back the provided liquidity plus earned yield after a lock-in of 14 days. Write tokens can be staked to farm $iBFR tokens
Buffer’s team comprises experts with varied experiences, ranging from solidity development, marketing, options trading, UI/UX design to building highly scalable backend systems. Feynman (Co-founder) looks after business development, marketing, and product growth, and Heisenberg (tech Co-founder) looks after product development and manages the tech team.
The future is clearly laid out by and for Buffer and the team is working hard to add new features and make the platform a full-stack default options protocol.
Visit the following social channels and join Buffer Finance’s community:
Buffer Finance can meet the needs of the flourishing crypto options market, and early participation can ensure investors higher investment returns. The future of this platform is bound to be promising and worth the attention of crypto options enthusiasts.
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.