UP/DOWN Options trading will be live on Polygon soon!
We stand at the threshold of a significant upswing in decentralized options trading. Our success with Buffer on Arbitrum has paved the way for us to venture into a new ecosystem that provides the necessary infrastructure for supporting Buffer products. This presents a unique opportunity to tap into a fresh wave of traders eager to leverage the potential of short-term exotic options trading.
The best part? Buffer’s expedition on Polygon will be powered by Metavault, the second-largest derivatives platform by TVL on the network.
Metavault will power up/down trading on Buffer - Polygon by providing 500K USDC as liquidity to the Buffer liquidity pool (BLP). Since Metavault will be the counterparty to all trades, 50% of the protocol-generated trading fees will be shared with Metavault. The remaining 50% will be added to the Buffer Treasury.
With this deployment, Buffer will become the first exotic options trading platform on Polygon. With Metavault supporting us in this endeavor, we are optimistic to unlock meaningful volume growth and user adoption on the network.
We expect our community to ask: What will the accumulated trading fees in the Buffer treasury be used for?
The accumulated trading fee (USDC) in the Buffer treasury is subject to community governance. We will supply regular reports detailing the accumulated fees to keep the community informed and prepared for the decision-making process on the same in the near future.
BLP on Polygon is different from the BLP on Arbitrum
Bridging of $BFR from Arbitrum to Polygon is still under development
Risk management parameters for trading on Buffer (Polygon) will be the same as trading on Buffer (Arbitrum).
Max vault utilization: capped at 40% of the total available liquidity
Max utilization per asset: 2-3% of the total available liquidity
Max utilization per trade: 0.25% of the available liquidity
Max limit: the maximum amount of liquidity that can be provided to the USDC vault on Polygon at any given time is currently capped at 500K USDC.
Separate payouts for up/down options market: crypto base payout (1.7x), forex base payout (1.8x), and commodities base payout (1.7x) –
We will support 5 crypto, 11 forex, and 2 commodity pairs on Buffer (Polygon).
In terms of platform performance, Polygon presents a boost to consistency, new partnership opportunities, and composability for new options primitives. We’re setting out to bring our A-game to the Polygon ecosystem and explore new opportunities to facilitate more trading volume.
We are actively working on activating $BFR Arbitrum to Polygon bridging as well as improving the trading experience on both ecosystems.
Last but not least, we are grateful for the support from the community. We look forward to your feedback and help on the new ecosystem, as well as to bringing Buffer much further together with you!
Interested in what’s coming next on the Buffer ecosystem in terms of product development and community growth? Learn all about it in our short to medium-term roadmap!
But hey, don’t forget to join our socials for more product updates, partnership announcements, and exciting contests: