Buffer Launches Liquidity program
Stake your BNB in the Liquidity pool and earn APY from options premium, insurance fee, and prediction bets + stake your $rBFR(BNB) tokens to earn $iBFR rewards
We are glad to announce Buffer’s BNB liquidity pool is now live on BSC Mainnet. You can deposit BNB directly to the liquidity pool and start earning yield when options trading begins.
Why you should become a Liquidity Provider?
Being a liquidity provider for an options trading protocol is an alternative to becoming a liquidity provider for a trading pair on an AMM like PancakeSwap or becoming a liquidity provider for lending protocols like Alpaca, Venus, or Compound.
Unlike AMMs where there is equal exposure in a pair of assets to become a liquidity provider in Buffer protocol you only have to take exposure in a single asset (starting with BNB) and all the yield generated is also in the same asset.
Also, given the derivatives market is 100x bigger than spot trading in traditional finance it's about to boom in the coming future for Defi as well. And being a liquidity provider gives you a direct and early exposure of being an options seller which is considered to be one of the most lucrative methods to earn passive income.
What are the opportunities?
Being an LP for options trading is new and has a lot of opportunities that have not been explored before. The Liquidity protocol will be used to write options, offer insurance, and act as a house for the prediction games.
The options market is set to see exponential growth over time in Defi and slowly will dictate the biggest share in Defi just like its traditional finance counterpart.
What are the risks?
Just like any other liquidity pool, there are chances of impermanent loss if there is unidirectional market movement but to counter that risk we have diversified the pool by allowing both call and put options to be written against the pool. At a given time there are always both put and call buyers and the liquidity pool will be able to generate a sustainable passive income for the LPs.
But still, there are low tailed risks that a Liquidity provider needs to be aware of
The LPs can also use their $rBFR (BNB) tokens to farm $iBFR and then stake $iBFR to get revenue share in order to maximize the APYs
How to get started?
Step 1: Mint $rBFR token by depositing BNB
a. Go to https://app.buffer.finance/liquidity and click on deposit
b. Add the amount of BNB you would like to add
c. Click confirm to add BNB to the pool and get your $rBFR(BNB) tokens
d. Check your balance of $rBFR after you have deposited BNBs
Step 2: Stake $rBFR to earn $iBFR
a. Go to https://app.buffer.finance/staking and click on stake
b. Add the amount of $rBFR you want to stake and then 1st Approve and then stake to start receiving $iBFR
Step 3: Stake $iBFR to the revenue sharing pool and earn BNB. (There is a Lock of 7 days for the revenue share pool.)
**The revenue share will begin after options trading is launched on 8th October.
Buffer is an on-chain peer-to-pool options trading protocol. It allows anyone to buy options against any asset without the need of a counterparty/option seller. All options are created and executed against a Liquidity Pool where anyone adds liquidity and earns yield from the option premium paid by the option buyer.