Buffer Finance

Buffer is a non-custodial on-chain peer-to-pool options trading protocol that works just like an Automated Market Maker (eg: PancakeSwap) where traders can create, buy, and settle options against liquidity pool without the need of a counterparty (option writer).

There are three stakeholders involved in the protocol and the process goes as explained below.

1) Liquidity providers(LP): LPs provide liquidity for a particular BEP-20 token’s liquidity pool and receive write buffer tokens($rBT) against it. The provided liquidity is used to write both call and put options and the premium paid by the option buyer (strike fee + option fee) is distributed among the $rBT holders as yield.

2) Option buyer: An option buyer can set any strike price and buy a put or call option after paying an option premium and a settlement fee (1% of the option amount). The bought options can be exercised anytime before the expiry date directly against the liquidity pool.

3) Token holders: Buffer protocol has 3 types of tokens and each token has its own utility and benefits.

$iBFR token: $iBFR is the native token of the buffer protocol — $iBFR can be staked to farm $BFR tokens or sold against regular buybacks.

$BFR token: $BFR token is the perpetual revenue-earning uncapped token and its price increases with token supply. $BFR holders get 100% of the settlement fee and reflection rewards on buy and sell.

$rBFR token: Write $rBFR tokens are issued to the liquidity providers. $rBFR tokens holders earn yield over the provided liquidity, or they can stake $rBFR tokens to farm $iBFR tokens.

Token Distribution Categories

The total supply for the $iBFR token is kept at 100,000,000 (100M) and has been divided into the following categories.

a. Seed Sale: 14%

This allocation was kept to raise pre-IDO funds so that we can do the required marketing.

b. IDO: 11%

The IDO allocation is divided among three launchPad TruePnL (1%), Lithium (3%) and SuperLauncher (6%).

c. DAO Allocation: 5%

DAO allocation has been kept to allow the team to later upgrade themselves to a Continuous DAO.

d. Team: 10%

Team tokens are kept to align team incentives and keep a significant skin in the game.

e. Treasury: 10.00%

This allocation is to meet different operational, marketing, and product development expenses.

f. Advisor /Partnership: 10.00%

This allocation is for all the advisors and partners working with the team.

g. Ecosystem rewards & marketing: 13.50%

$iBFR will be used as the key fuel to gamify the platform & increase incentives for the community to participate regularly and contribute to the growth.

h: Airdrop & LeaderBoard: 1.50%

This allocation covers the LeaderBoard rewards, Lithium Venture Airdrop, and rewards to communities who supported us in growing our audience and spreading awareness.

i: Liquidity &Liquidity Mining: 20.00%

This allocation is kept for adding liquidity to different exchanges and setting up farming pools for liquidity mining.

j: $rBFR farming pool: 5.00%

This allocation is kept for Liquidity providers as an incentive to earn additional APY in form of $iBFR rewards. Anyone can become a liquidity provider and mint $rBFR (LP) tokens. These tokens can be staked in the $rBFR to $iBFR farming pools.