How BuffX Works

BuffX operates as a liquidity infrastructure layer designed to connect stablecoin capital with real-world financial activity through clearly defined products.

Rather than running a single monolithic system, BuffX is structured around independent products, each built to address a specific operational or economic constraint. While products differ in purpose and mechanics, they all follow the same core operating principles described below.

Product-centric architecture

BuffX is organized around distinct products, not a single pooled system.

Each product:

• Has a defined purpose and use case

• Operates under explicit terms and conditions

• Is documented independently

• Can be evaluated on its own merits

This structure allows new products to be added over time without introducing ambiguity or hidden dependencies between systems.

BuffX operates through independent, clearly scoped products rather than a single shared liquidity pool.

Liquidity allocation model

Liquidity providers allocate stablecoin capital to a specific product for a defined period. That capital is then deployed according to the product’s documented operating model.

For products supporting real-world financial flows, liquidity is allocated to support transactional activity rather than speculative market behavior. The relationship between capital allocation and its use remains direct and observable at the product level.

Contract-defined operating terms

Where a product is fixed-term, its duration and return parameters are defined in advance for each cycle.

Each cycle operates under contract-defined terms for that period. This approach provides:

• Predictability for participants

• Clear operational boundaries

• Simpler integration with external financial systems

Automatic renewal may be available depending on the product, allowing participants to remain allocated across consecutive cycles unless a withdrawal is requested within the defined window.

Each fixed-term product cycle operates under predefined, contract-bound terms that apply for that specific period.

Partner integration

BuffX products may rely on external partners to support real-world activity.

For example, certain products allocate liquidity in coordination with our partnered financial institutions, which facilitates access to international payment infrastructure and transactional corridors. These integrations allow liquidity to be deployed into existing financial operations rather than creating parallel systems.

Partners are selected based on their operational role, regulatory standing, and ability to support clearly defined financial flows.

On-chain and off-chain separation

BuffX products are designed to limit on-chain exposure where possible.

Depending on the product:

• Principal liquidity may be held off-chain with regulated financial entities

• Only operationally required amounts are held on-chain

• On-chain components are used for coordination, accounting, and access control rather than full custody

This separation reduces the smart contract surface area while preserving transparency at the product level.

BuffX products separate on-chain coordination from off-chain financial operations to reduce exposure while maintaining clarity.

Monitoring and operational control

BuffX maintains continuous operational monitoring across all on-chain product flows.

Monitoring systems are designed to:

• Track expected operational behavior

• Detect anomalies

• Enable timely intervention when required

Where applicable, products include the ability to pause or freeze activity to contain unexpected on-chain behavior and protect participants.

From operating model to products

The operating model described above applies across the BuffX ecosystem, while each product implements it in a specific way.

Detailed product mechanics, parameters, and partner roles are described in individual product pages. The first of these is ILN-FR, which applies this model to a fixed-term liquidity product supporting international payment corridors.