https://www.cisco.com/c/en/us/td/docs/ios/12_0s/feature/guide/fs_bfd.html
BFD can be used at any protocol layer. However, the Cisco implementation of BFD for Cisco IOS Releases 12.2(18)SXE, 12.0(31)S, and 12.4(4)T supports only Layer 3 clients, in particular, the BGP, EIGRP, IS-IS, and OSPF routing protocols.
BFD has both advantage of CPU and time, especially iff offloaded to line card it has reduction in CPU. However the primary point of BFD is reduction of time in updating layer 3 routing protocols, when there is a BFD echo (original implementation, version 0) or asynchronous (version 1) failure
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