Options voucher minting is now live!

We are glad to announce that from now on, all the option positions on Buffer Finance will be minted as option vouchers. Option vouchers are Semi-fungible tokens built using Solv’s ERC-3525 standard.

This article addresses a few questions about option vouchers and why we choose Solv finance’s ERC-3525 standard.

What are option vouchers?

Option vouchers are call options that anyone can buy against a liquidity pool. Before expiry, they can exercise them if the price goes above the strike price or sell them in a secondary market to another willing buyer.

After expiry, if the price is above the strike price, the option is auto cash-settled. If the price is below the strike, the buyer loses the premium.

What advantages do the semi-fungible tokens have?

Semi-fungible tokens allow NFT marketplaces to be used as secondary markets; simultaneously, they can also be split and merged like an ERC-20 standard token, making them much more liquid than a normal NFT.

The split and merge ability in an NFT can be a game-changer to add a new paradigm to options OTC trading.

What are the benefits of option vouchers?

1. Hedging — AMM Liquidity Providers can buy put and call options to hedge from impermanent loss.
2. Diversification — Buyers with limited capital looking to diversify can buy call options on multiple tokens taking leveraged liquidation-free exposure in multiple tokens without deploying extra money.
3. Treasury management — DAOs can use their treasury tokens as collateral to sell call options on their tokens and raise funds.
4. Sustainable yield generation — Token holders can deposit their tokens in the liquidity pool to earn organic yield by selling options.

How to participate?

1. Buy call — Buyers willing to buy options can visit the call-booster page.
2. Earn Yield — Token holders looking to earn yield from selling options can check out the Vault page.
3. Launch option vouchers — DAOs looking to launch options on their treasury tokens can fill out these short forms. We will contact you with details.

To trade the minted financial NFTs any NFT marketplace be used.
Trading support on the Solv Platform for options vouchers will be added soon.

About Solv

Solv Protocol is a decentralized marketplace for minting, trading and managing NFTs that represent financial rights. Solv has offered Vesting Voucher, an allocation management fundraising tool, Convertible Voucher, a structured product allowing DAOs to leverage native tokens, and Bond Voucher, the first market-tested debt instrument in DeFi that helps DAOs tap into the debt capital markets.

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About Buffer

Buffer is an on-chain options pricing and settlement protocol that supports multi-asset option trading against a shared liquidity pool and multi-chain dynamic decentralized option vaults.

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