Buffer Launches Liquidity program

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.

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

About Buffer

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.



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Buffer Finance

Buffer Finance

Short-term and fast-paced gamified options trading platform.