Buffer Finance AMA Transcript

"BSC's 1st gamified options trading protocol for BNB"

By
BSCNews
on
September 19, 2021
Category:
AMA

Andrew (BSC.News):

Hello everyone and welcome to the AMA with Buffer Finance! Today we have Ric, the Co-Founder of Buffer Finance joining us to talk about their protocol as well as help out with the giveaway

Pleasure to have you here Ric

F R:

Hi Andrew , Thanks for inviting me for the AMA. Pleasure to be here.

Andrew (BSC.News):

Of course, great to have you here

So how this will work is, the AMA will consist of two rounds. The first round will be us going through the questions that I had prepared for you before hand. And then the second round will be a community round where I will open up the room to allow questions to come in. The second round is also where we will select the two winners of our giveaway

Sound good?

F R:

Yes Let's get started

Andrew (BSC.News):

Alright great


1. Please give an introduction to yourself and the team that is behind Buffer.


F R:

Sure!

I am Ric Feyman, Co-founder of Buffer Finance. I come from an engineering and financial background.

Have been trading crypto and options since 3 years.

My Co-founder Heisenberg, is a solidity developer

With background in FInance. We are a small but ambitious technical team which includes UX/Ui designer, frontend developer, marketing person and community manager

I personally take care of the financial and product management side and My co-founder is the main developer of the protocol.

Andrew (BSC.News):

Wow that is awesome, thank you for that introduction.  Really shows how dedicated you guys are having a small team and still setting out this big goals for yourselves!


2. Can you give an overview of Buffer and what kind of mission are you trying to accomplish with Buffer?


F R:

So Buffer in most simple words is an options trading platform. Where anyone can buy a call or put options on multiple crypto and other ASSETS.

Buffer is 100% decentralised and works on a Peer to Pool model

So there is no need of an option seller if you indeed want to buy an option

It's just like pancakeswap & uniswap - they solved it for spot trading and we have done it for options.

We are extremely bullish on future derivatives market and think this is the beginning of an era where Defi will eat up trad finance - Derivatives being the biggest market in the traditional market will be the biggest beneficiary

Andrew (BSC.News):

Agreed 100% and because of the fact that it is decentralized as well. It only looks good for the future


3. For those who may not understand, could you tell us more about derivatives trading and how Buffer can simplify it?


F R:

Yes of course our main selling point is to simplify options for retail crypto investors

So Derivatives are of multiple types. Futures options swaps etc. 

Our protocol focuses on options.

In spot trading where you buy and asset and sell it if goes up to make profit. 

Whereas in options you just buy an outcome rather than the asset itself - and if the outcome does come true you make profits at much higher ROI

So for example if you think BTC will go from 50k to 100k and you want that profit what you can do is but BTC and hold till it get to 100k and then sell.

You will make 50K

Whereas for options what you can do is buy a call option saying - BTC will rise from 50K to 100K and pay a fee of Just 5K

And if BTC does go up to 100K you make 50K by just putting in 5K - so that 10X ROI

Andrew (BSC.News):

Awesome, thank you for that explanation Ric! And of course for the community, make sure to do your own research as any trading comes with financial risks

So moving on

You mentioned the peer to pool model you had in place but I wanted to touch more on this


4. How does the protocol work?


F R:

Yes ofcourse. 

So the protocol has three key participants

1. Option Buyer

2. Liquidity provider

3. Token holder

Option buyers basically buys options and pay fee to buy that option. The fee paid has two component one is the option premium and the other is a protocol fee (AKA settlement fee)

This option is created directly against the Liquidity pool and hence it doesn't require a counterparty or option seller

Now the Liquidity pool  gets the fund from the Liquidity pool where anyone can offer liquidity and then they get the right over the premium paid by the options buyer to buy the option.

Now the settlement fee is the revenue that the protocol makes - this revenue's 50% is shared with the token holders who stake the token

And after buying the option the buyer can close the deal anytime before the expiry

We have also made the whole user Journey simple by gamifying it into a prediction model.

Andrew (BSC.News):

Oh I see that's really neat

so would you say that when building this, you had an emphasis on lowering the barrier of entry for those who may not be familiar with derivatives trading?

F R:

Yes exactly - we want anyone to monetise their viewpoint on an asset price without going through the financial jargon

If they understand the risk and reward it should be extremely simple for them

And actually the whole product is live on Testnet and anyone can try it out.

Users have to select up or down and the expiry date for their prediction select the Bet size and they are good to go!

As simple as that

Andrew (BSC.News):

Yeah that's awesome 🙂

So you did mention the token holder

And I think we should talk about the actual token itself some more so


5. What is the $BFR token? What kind of utility does it serve?


F R:

So $iBFR token is the native token of the protocol with multiple use cases. 

key feature of $iBFR is it gives direct right to 50% of the revenue protocol makes to the stakers

So if we say daily volume is $1m we will be earning a revenue of 40K over it and 20K will be distributed among the $iBFR stakers.

With $iBFR holders can also participate in governance - so they can decide how much revenue % they want to increase.

They can also vote to reduce the fee the protocol makes or increase it

Other than the key features - they can also participate in buybacks and burns become LPs or in few months get discount over the fee to buy the tokens.

Tokenomics details can be found here

Andrew (BSC.News), [Sep 19, 2021 at 8:34:52 AM]:

Just as a side question

and if you don't have an answer for this it's fine

F R:

Sure!

Andrew (BSC.News):

But with the recent DAO kind of "scandal" that happened with Venus, would you take the measure to stop a vote from happening that could essentially bankrupt the protocol?

F R:

Yes so the proposals will be started after Q1 2022 first and the governance proposals are only for Settlement fee and revenue sharing where there is a tradeoff for $iBFR holders only.

So we have given the decision making in their Hands

basically there is no way for token holders to pass a proposal that involves anything catastrophic like draining out Liquidity or changing options premium

What they can change is Fee - If they increase the fee people might not buy options reducing volume and if they increase revenue % share a lot - New features will come at slower rate lesser marketing etc.  So we believe the market equilibrium will be maintained.

Andrew (BSC.News):

Oh I see, thank you for that answer Ric!

F R:

Welcome! Great question BTW

Andrew (BSC.News):


6. What kind of benefits and features will Buffer have?


F R:

So buffer's main benefit is it allows anyone to take position on future price of an asset without actually holding that asset.

And allowing it against a pool makes it highly efficient

Now key features will include allowing more assets like BTC, ETH planned to be released next month

And then we will also support stock options for Apple, Alphabet, Amazon and Tesla

Also we are coming with Insurance where anyone can buy insurance against an asset they are holding to prevent them from sudden price fluctuations

All of it will be backed by a Liquidity Pool

Andrew (BSC.News):

Oh wow

So you will even incorporate the traditional market onto a Dapp

That is super neat

F R:

Yes mostly by Q4 end it will be live

Andrew (BSC.News):

Very cool


7. What is the incentivized testnet?


F R, [Sep 19, 2021 at 8:48:40 AM]:

So as I told the product is now live on the Testnet - with full ecosystem including staking and faucet. 

Anyone can try it. To further increase participation and education around options we have embedded a reward system in it.

So anyone can paper trade options and the traders making maximum profits gets $iBFR rewards - the incentivised Testnet ran for 8 weeks. and now is on hold for the IDO week.

We will restart it as soon as our IDO ends

Already users have won $33,750 worth of $iBFR tokens and bigger rewards are coming up

Andrew (BSC.News):

Oh how cool so it is almost a learn and earn

F R:

Yup

Andrew (BSC.News):

Rather than a try and get wrecked your first time haha

And I must have missed it but, when did you say the protocol was going fully live?

F R:

We are under final Audit process with Peckshield - Hoping to go live by 5th of October or before.

Here's the Testnet

Andrew (BSC.News):

Great, thanks Ric


8. Why did you choose BSC as the chain to launch on? What other chains will the protocol be available on?


F R:

So we wanted to first build options for BNB holders. We have been holders since a long time and have difficulty finding avenues to hedge the price fluctuation

And even when BNB is such a big crypto currencies there are rarely any avenue to buy options on it.

After BSC we will be going to polygon and then Avalanche.

Andrew (BSC.News):

I see

And as a side q, when you launch on multiple chains. Those that mean your token holders will now receive revenue shares across all chains?

F R:

Yeah we are working on that but cannot say for sure! Mostly that is what will happen

Andrew (BSC.News):

Awesome and last but not least


9. Any exciting news you would like to announce here today?


F R:

So our IDO is currently live and up on https://t.me/lithiumventures it's already over subscribed anyone can invest now as well.

Post lithium ventures we have an IDO on SuperLauncher tomorrow (20th Sep) starting at 2:00 PM UTC

If anyone thinks that Derivatives market has lot of potential and like our ability to build valuable products can invest in the IDO

Andrew (BSC.News):

Great!

And would you be able to provide us with links to your webiste, twitter and any other social media you would like our community to go and check out?

F R:

Website:

Telegram:

Twitter:

Github:

Andrew (BSC.News):

Fantastic, make sure to go check out Buffer Finance everyone! Their IDO is currently live and they are doing big things to bring derivatives trading to DeFi with their revolutionary peer to pool options trading. Don't miss out!



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