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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Derivative exchanges

Buffer Finance

# Buffer Finance Active users (daily) Methodology

## 1. Overview

Daily Active Users (DAU) for Buffer Finance measures the number of unique addresses that created new binary option positions on any given day across the Buffer Finance protocol. This metric captures user engagement by tracking option trading activity across multiple contract instances on Arbitrum and Polygon chains. A user is considered "active" on a day when they execute at least one option creation transaction, regardless of the underlying asset (USDC, ARB, BFR, POL) or contract version.

## 2. Data sources

- **Blockchain events**: Parsed `Create` events from Buffer Finance binary options contracts on Arbitrum and Polygon
- **Contract coverage**: 68 different Buffer Finance contract instances including USDC, ARB, BFR, and POL denominated options contracts
- **Chain data**: Arbitrum and Polygon blockchain transaction logs and timestamps
- **Configuration data**: Chain availability filters and business segment mappings

## 3. Step-by-step calculation

### Component A: User activity identification
- **Purpose**: Identify all users who created option positions by collecting `Create` events from Buffer Finance contracts
- **Logic**: The system monitors 68 different Buffer Finance binary options contracts across two chains. On Arbitrum, it tracks 50 contracts including multiple versions of USDC, ARB, and BFR denominated options contracts (numbered 1-22 for USDC, 1-18 for ARB, 1-10 for BFR, plus 4 POL variants). On Polygon, it monitors 18 contracts (BufferBinaryOptions1 through BufferBinaryOptions18). For each contract, the system captures `Create` events which are emitted when users open new option positions. Each event contains an `account` parameter that identifies the user address performing the trade.
- **Key fields**: `block_timestamp` for timing, `transaction_hash` for deduplication, `account` parameter as the user address, chain identifier, and event metadata

### Component B: User classification and standardization
- **Purpose**: Standardize user data across different contracts and chains with consistent business categorization
- **Logic**: All users identified from `Create` events are classified as "Option Trader" user type since option creation is the primary activity tracked. The system applies consistent business categorization by mapping all activity to the "derivatives" market sector and "option" business segment, reflecting Buffer Finance's focus on binary options trading. The `product_id` field is set to null as there's no further product differentiation needed. Chain information is preserved to enable chain-specific analysis while maintaining cross-chain aggregation capabilities.
- **Key fields**: `user_type` set to "Option Trader", `market_sector_id` as "derivatives", `business_segment_id` as "option", `chain` for network identification

### Component C: Daily aggregation and deduplication
- **Purpose**: Calculate daily distinct active users by aggregating unique addresses per day
- **Logic**: Block timestamps are truncated to day granularity using day-level time boundaries. The system then performs distinct counting on user addresses within each day to ensure that users who create multiple options on the same day are counted only once. This deduplication is applied across all contracts and chains, so a user active on both Arbitrum and Polygon on the same day would still be counted as a single DAU. The aggregation preserves key dimensions including chain, user type, and business segment classifications for downstream analysis.
- **Key fields**: `timestamp` truncated to day level, `timestamp_grain` set to "day", distinct `user_address` as the final DAU count

### Final aggregation
- **Combining components**: User activity data flows directly from event collection through classification to daily aggregation without complex joins, as all data originates from the same source events
- **Currency conversion**: Not applicable for this metric as it counts user addresses rather than monetary values
- **Time aggregation**: Daily boundaries are established by truncating blockchain timestamps to day level, with each day representing a 24-hour period in the blockchain's native timezone
- **Final calculation**: The metric outputs the distinct count of user addresses per day, with each unique address contributing exactly one to the daily total regardless of how many option positions they created that day

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

Unique revenue-generating users over a fixed 24-hour window.

Buffer FinanceBFR

Active users (daily)

Active users (daily)

Competitive landscape

Chain breakdown