Introducing Buffer DDOV

Buffer DDOV; Crypto structured products
  1. Collection of collateral for writing options
  2. Selling options at a pre-announced date & time either via OTC deals or auctions
  3. After settling the previous position and all pending deposit and withdrawal requests, repeat the cycle with a new strike price and expiry.
  1. Tokenized deposits for option sellers
  2. On-chain pricing and auto-settlement for plain vanilla options
  3. Option buyer’s position will be minted as an NFT
  1. Option sellers can deposit collateral closer to expiry to reduce exposure time.
  2. Option sellers can deposit when IVs are high to receive a higher premium.
  3. Option buyers can leverage NFT marketplaces to exit positions via auctions or OTC deals.
  1. In-built delta-hedging — Certain percentage of the deposited funds in the DOV would be reserved to hedge the delta by going long/short in a perpetual future platform.
  2. Multiple strategies — Once DDOVs integrate with a perpetual futures trading platform, numerous synthetic options strategies like strangle, straddle, and covered puts would also become possible.
  3. Permissionless DDOVs — Using on-chain oracles for pricing, anyone can launch a DDOV for any token in a completely permissionless way.

About Buffer

Buffer is a multi-asset option trading protocol. It allows anyone to buy options directly against a liquidity pool.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Buffer Finance

Buffer Finance

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