Introducing Buffer DDOV

Buffer DDOV; Crypto structured products
  1. Selecting an expiry date (weekly/bi-weekly) and an out-of-money strike price (delta between 0.1 & 0.15)
  2. Collection of collateral for writing options
  3. Selling options at a pre-announced date & time either via OTC deals or auctions
  4. After settling the previous position and all pending deposit and withdrawal requests, repeat the cycle with a new strike price and expiry.
  1. Users can deposit collateral anytime, and it will be immediately available for selling options.
  2. Tokenized deposits for option sellers
  3. On-chain pricing and auto-settlement for plain vanilla options
  4. Option buyer’s position will be minted as an NFT
  1. Option buyers can buy when IVs are low instead of a pre-defined time.
  2. Option sellers can deposit collateral closer to expiry to reduce exposure time.
  3. Option sellers can deposit when IVs are high to receive a higher premium.
  4. Option buyers can leverage NFT marketplaces to exit positions via auctions or OTC deals.
  1. In-built staking — Buffer’s DDOVs will be able to offer additional returns by staking deposited collateral into yield earning pools.
  2. 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.
  3. 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.
  4. Permissionless DDOVs — Using on-chain oracles for pricing, anyone can launch a DDOV for any token in a completely permissionless way.

About Buffer

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Buffer is an on-chain options pricing and settlement protocol that powers multi-chain next generation Defi option vaults

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Buffer Finance

Buffer Finance

Buffer is an on-chain options pricing and settlement protocol that powers multi-chain next generation Defi option vaults

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