It’s an exciting time to be a part of the Arbitrum ecosystem. All of CT is painted in blue and orange 💙🧡. At Buffer, we are doing our own part in strengthening the Arbitrum ecosystem.
TL;DR:
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A portion of the ARB tokens will be allocated to seed the buffer liquidity pool to kick-start ARB-based Up/Down trading.
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70% of the trading fee is distributed to users who provide liquidity to the ARB vault
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15% of the trading fee is distributed to eligible BFR stakers
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15% of the remaining trading fee is routed to the treasury to support and incentivize long-term product development and community growth.
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ARB-based Up/Down trading offers 2% higher payouts on all trading pairs compared to USDC-based trading.
ARB Vault
We have allocated a portion of the airdrop to seed the ARB vault for trading. LPs who provide liquidity to the vault will mint aBLP token that will be staked by default to immediately begin accruing:
- 70% of the protocol generated revenue in ARB
ARB vault cap limit has been initially set to 1M ARB. As a risk management measure, max vault utilization at the time is capped at 40% of the total available liquidity (would be increased gradually).
Additional risk management measures:
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Max utilization — Max vault utilization at a time is capped at 40% of the total available liquidity (to be increased gradually as protocol volume grows)
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Max utilization per asset — 1 to 3% of the total available liquidity (depending on the asset)
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Separate Payout (%) for Up and Down — will be kept the same for all assets initially but can be changed in case of unidirectional moves in the market
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Max utilization per trade — 0.25% of the available liquidity
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Max limit — the maximum amount of liquidity that can be provided to the ARB vault at any given time is currently capped at 1M ARB (to be increased gradually as protocol volume grows)
Weekly ARB Airdrop for BFR stakers
15% of the trading fees will be distributed to eligible BFR stakers*. *To be eligible, the sum of staked and unstaked MP divided by the sum of staked BFR, staked esBFR, and staked MP, should be higher than 0.02.
Meaning staked BFR + staked esBFR + staked MP = 10,000. Then you would need a minimum of 200 staked Multiplier points to be eligible for the airdrop.
The weightage of each BFR staker for the trading fees rewards will be determined by the formula: (Staked BFR+ Staked esBFR + Staked MP) + 5 * (Staked MP + Unstaked MP)
The airdrop is designed to benefit long-term stakers and ensure a fair distribution.
Higher Payouts
ARB-based trading offers 2% higher payouts compared to USDC-based trading on all supported pairs.
Payouts can be further boosted up to 12% via Optopi NFTs or Referral. So combined with an Optopi NFT boost or referral code boost, the MP boost can offer a payout% of up to 92% payout boost!
ARB trading is supported on the following crypto and forex pairs:
If you’re new to Buffer, here’s a quick start guide on how to trade Up/Down options:
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Choose the market you’d like to trade: crypto or forex, or commodities
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Choose the pair you’d like to trade (use the list above to navigate)
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Select all the “trade parameters” on the right-hand side dashboard:
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Trade duration: timeframes range between 5 mins to 4 hrs
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Trade size: select the asset you want to invest (USDC or ARB) and then enter the amount you want to invest
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Select the direction you anticipate the price will move by selecting any of the two buttons:
🔼UP: means that you predict an increase in the price of the asset.
🔽Down: means you predict a decrease in the price of the asset
The Catalysts
While the rest of the market is bear-ly hanging, Arbitrum’s airdrop has everyone on this side of CT abuzz with fresh enthusiasm. Yet it is important to remember that the airdrop simply perpetuates Arbitrum’s success story, the real catalysts are the infrastructure and the culture. By implementing the ARB token at the core of Buffer finance, we seek to foster collective growth and create sustainable value for our community members.