Flux Protocol Integrates with Options Trading Protocol Buffer Finance
What if there was an easier way to manage your trading options and equity without having to go through a centralized intermediary?
Flux Protocol has officially integrated with gamified options trading protocol Buffer Finance, a platform that could allow you to do just that.
Buffer is a non-custodial on-chain peer-to-peer options trading protocol that operates like an Automated Market Maker. This means traders can use Buffer to create, buy and settle options against a liquidity pool without a middleman.
There are typically two parties involved in the trading. Option buyers can buy options for any given asset (Buffer currently supports 18) in auctions with customizable strike prices and expiries. Liquidity providers provide liquidity in a common liquidity pool.
In other words, Buffer buys options for buyers and enables them to directly monetize their assets without having to go through a third party.
How will Buffer leverage Flux’s oracle network?
The platform requires data on the current price of each asset it supports. Currently, Buffer uses a “Black Scholes model”– when Buffer sells an option, it needs to price it and the user has to buy it.
The pricing for the asset has been embedded within the contract itself based on the current price, strike price, and implied volatility selected. Flux Protocol is providing Buffer with current prices for its supported assets.
“Buffer utilizes Flux for high-quality price data in their option product. With this integration, users of Aurora and NEAR will now have access to open market mechanics for more flexibility and control over their assets,” said Peter Mitchell, co-founder of Flux Protocol.
By integrating with Flux, Buffer is leveraging a truly decentralized oracle solution that can request data from individual data providers rather than a centralized black box.
“Asset price feeds are a critical requirement for accurately pricing and settling options, and Flux oracles have been pivotal for us to launch on the Aurora platform,” said Ric Feynman, founder of Buffer Finance. “This integration will help us offer our products to the growing NEAR and Aurora community.”
Flux allows any smart contract to connect with crowdsourced, API-based, and price-feed data. Flux brings this data on-chain using a sophisticated validation and dispute mechanism that relies on economics principles to keep validators honest.
Flux is backed by world-class investors such as Distributed Global, Coinbase Ventures, Reciprocal Ventures, Coinfund, Maven 11, Flow Ventures, among others.
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About Buffer Finance
Buffer is a multi-asset gamified options trading protocol. It allows anyone to buy options against any asset directly against a liquidity pool.