Introduction to Buffer
Welcome to our docs!
Buffer Finance is a non-custodial exotic options trading platform.
We offer defined-outcome and fast-paced trading over crypto and non-crypto markets (like forex, commodities, and indices).
Traditionally, options trading can be quite complex. Buffer streamlines this complexity, turning it into a straightforward experience with its unique 1 Click - Up & Down trading feature.
All trades are placed against a liquidity pool, liquidity providers can provide liquidity and take the counterparty risk to earn a part of the platform fee and esBFR token incentives
- True 1 Click Trading: no wallet approvals or asset transports between EOA & SCWs, gasless, instant.
- Full custody of your assets: no deposit or signups are required
- Multiple markets available: crypto, forex, commodities
- High payouts available: up to 90% (can be further boosted with Optopi NFTs or referral) -> up to 150x on cryptos, 1000x on forex, 250x on commodities
- Private Trading: trade direction is obfuscated from the public history for live trades
- Precision trade and multiple order types: limit orders and early close made possible with our 1 click trading facility
Buffer vaults (currently aBLP and uBLP), including user-provided and POL, function as the sole counterparty for all trades within the system.
This design eliminates the competition between individual traders that is commonly found in traditional binary options platforms.
Instead, traders are pitted against the market itself, rather than each other.
This is quite a notable upside from traditional binary options platforms, where the interactions often follow a zero-sum game model.
Buffer is the first to establish such a model in the on-chain options space.
Buffer v2.5.1 has two objectives. The first is to enhance user expereice by simplifying interactions, abstracting transaction approvals, optimizing trade execution and gamification, as well as in-chart position management.
The second is to enhance trader flexibility by allowing users to close any position using the new EarlyClose() function.
Compared to centralized exchanges, Buffer v2.5.1 easily offers significant upside to traders with self-custody of assets, fair and transparent distribution of platform rewards, and no requirement of a centralized clearing house.
Compared to legacy decentralized trading platforms, Buffer requires zero gas costs, zero extra wallet approvals, zero EOA to SCW asset transports, gas tops, or any hidden complications for that matter.
This is achieved through our “1 Click” trading facility that allows all operations on the platform to be undertaken with account abstraction.
Buffer also offers extremely low-latency options trading.
This is achieved through our off-chain, sequencer-like facility, which executes multiple trades in groups or queues.
By doing so, we minimize miner extractable value (MEV) and enable lightning-fast trading, setting us apart in the competitive market.
All trades on Buffer are placed against a USDC-based liquidity pool known as BLP, which acts as the clearing house for options traders.
Liquidity providers (LPs) contribute to this pool and take on counterparty risk, earning a portion of the platform fee and additional rewards in esBFR tokens.
LPs act as counterparties to options traders. They can earn both trading fees and profits from mark-to-market (PnL) positions. If options traders lose money, LPs benefit from the redistribution of funds.
More BLP liquidity allows Buffer to support larger trade sizes, generating higher protocol volume and more fees for BLP and BFR stakers. This encourages more BLP minting and BFR staking.
Buffer's focus on short-term trading instruments enables liquidity to be used multiple times. This efficiency generates higher fees with significantly less capital.