Liquidity providers deposit funds into Buffer Finance and receive trading fees from binary options traders (supply-side fees).

Buffer Finance is a non-custodial binary options exchange built on Arbitrum and Polygon. Buffer Finance was founded by an anonymous team and launched in 2021.

BFR token holders own and govern the protocol. They currently take a cut of the total trading fees paid by binary options traders (revenue).

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Buffer Finance

# Buffer Finance Token incentives Methodology

## 1. Overview

Token incentives represent the total USD value of esBFR tokens distributed as rewards to users participating in Buffer Finance's staking programs. This metric captures the daily value of incentive payments made to users who stake BFR tokens or BLP tokens on the Arbitrum blockchain. The calculation tracks actual claimed rewards rather than theoretical rewards, providing insight into the real incentive distribution activity on the platform.

## 2. Data sources

- **Arbitrum blockchain event logs**: Parsed `Claim` events from Buffer Finance staking tracker contracts (StakedBfrTracker and StakedBlpTracker)
- **Token price feeds**: End-of-day price feeds for esBFR token USD conversion
- **Token metadata**: Token contract information including decimal precision for the esBFR token

## 3. Step-by-step calculation

### Component A: Raw incentive claims extraction
- **Purpose**: Extract all esBFR token reward claims from Buffer Finance staking contracts
- **Logic**: The system identifies two types of staking reward claims from Arbitrum blockchain events. First, it captures `Claim` events from the StakedBfrTracker contract, which handles rewards for users who stake BFR tokens directly. Second, it captures `Claim` events from the StakedBlpTracker contract, which handles rewards for users who stake BLP tokens. Each claim event contains the recipient address, transaction details, and the amount of esBFR tokens claimed. The system applies distinct filtering to ensure each unique claim transaction is counted only once, preventing double-counting of rewards.
- **Key fields**: Transaction timestamp (`block_timestamp`), recipient address (`address`), claimed token amount (`amount`), transaction hash and log index for uniqueness

### Component B: Data standardization and classification  
- **Purpose**: Apply consistent business classifications and prepare data for USD conversion
- **Logic**: Each claim record is standardized with Buffer Finance's business context. All claims are classified under the "Options trading" business line since Buffer Finance operates as a derivatives platform. The market sector is set to "derivatives" and business segment to "option" to reflect the platform's focus on options trading. The esBFR token address is consistently applied as the reward token identifier. Chain information is set to "arbitrum" and version to "v1" based on the contract deployment details.
- **Key fields**: Business line classification, market sector and segment identifiers, token address (`0x1a5b0aaf478bf1fda7b934c76e7692d722982a6d`), chain and version metadata

### Component C: USD conversion and decimal correction
- **Purpose**: Convert raw token amounts to standardized USD values with proper decimal scaling
- **Logic**: The system converts esBFR token amounts to USD values using end-of-day price feeds. Token amounts are first corrected for decimal precision based on the esBFR token's decimal configuration. This ensures that raw blockchain values (which are typically stored as integers) are converted to their actual token amounts. The USD conversion then applies the appropriate exchange rate from the price feeds, using end-of-day pricing to maintain consistency across daily aggregations.
- **Key fields**: Original token amount, decimal-corrected amount, USD exchange rate, final USD value

### Final aggregation
- **Combining components**: All processed claim records are aggregated by truncating timestamps to daily boundaries, summing the USD values of all esBFR rewards claimed on each day
- **Currency conversion**: Token amounts are converted to USD using end-of-day price feeds, with decimal correction applied before currency conversion to ensure accurate scaling
- **Time aggregation**: Data is aggregated to daily totals using day-truncated timestamps, with a forward-fill strategy applied to ensure no gaps appear in the daily time series
- **Final calculation**: The final daily token incentives value represents the sum of all USD-converted esBFR rewards claimed on that day across both BFR and BLP staking contracts, providing a complete picture of Buffer Finance's daily incentive distribution activity

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Value of native tokens distributed as incentives.

Buffer FinanceBFR

Token incentives

Token incentives

Competitive landscape

Chain breakdown