https://twitter.com/EEtherling/status/1588223538569400320

Buffer is binary options trading platform built on Arbitrum. It allows you to bet whether price will be up or down after chosen time frame. You could pick from 5 min expiry time up to 24h (currently restricted to 4h max). If you are correct you get your deposit back +70% reward. If you’re wrong you lose your entire stake.

Example: Current ETH price is $1500 and you think it’ll be worth more than that in 5 mins. You deposit 100 USDC and after 5 mins price is $1500.01 → you win 170 USDC. Below $1500 you lose it all.

From the perspective of the app, it’s pretty cool for its growth. Because you can gamble during every market conditions - even with low volatility periods. And use of “gamble” word is on purpose. I think it can be very addictive for users because you can win big in as short time frame as 5 minutes. You can also lose it all… and “revenge trade” that loss. But it translates to platform’s growth and with that - potential demand for BFR token. So let’s dive into it.

Token model is forked from GMX. Which means you can stake BFR and earn esBFR (escrowed BFR vested for 6 months) and USDC (currently 40% of fees paid by traders). Buffer also has liquidity token BLP (like GLP on GMX), but in form of protocol owned liquidity (POL) and at the moment users are not able to invest in it. POL contract and fees accrued by platform can be tracked under the hiperlinks.

According to Buffer’s recent tweet, POL grown by 45% and traders paid 51k USDC in fees since 9 days (POL start).

https://twitter.com/Buffer_Finance/status/1588597906617122816

Regarding allocation of BFR (taken from their Medium article from Nov 3):

• ~28mln circulating supply (current mcap: ~13mln)

• 20mln reserved for esBFR rewards

• 10mln DEX liquidity

• 10mln community & team compensation

• 2mln to pay keeper network and rewards for competitions

• 5mln protocol owned liquidity

• 25mln TBD by community

• MAX TOTAL SUPPLY: 100mln tokens

You can see that only 28% of BFR is in circulation and in time current holders can be diluted by new supply hitting the market. But! As said earlier, Buffer Finance is trading platform similar to GMX with GMX tokenomics. Which means holders are incetivized to stake, because it allows to earn real yield from trading fees and gain share of new supply in a form esBFR (where BFR needs to be locked for vesting esBFR to BFR). Adding gambling vibes of Buffer’s dapp (more trades → more fees for stakers), real yield narrative, Arbitrum narrative (associated with airdrop rumors) and relatively small market cap, we get good mixture for nice gains in next weeks/months.

NOT FINANCIAL ADVICE!

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