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Preheat oven to 350°F and prepare 3 8-inch pans with parchment.
Beat softened butter until smooth.
Add sugar, oil, and vanilla to butter and mix well.
In a separate bowl, whisk flour, baking powder, and salt.
Add flour and buttermilk in turns, then add champagne and remaining flour.
Stir in food coloring, if using.
Beat egg whites to stiff peaks.
Gently fold whites into batter.
Evenly divide into pans and bake for 25–28 minutes.
Let cool in pans 15 mins, then on racks until room temp.
Simmer 2 ¼ cups until reduced to 6 Tbsp; cool fully.
Beat butter, add powdered sugar gradually, then vanilla and champagne reduction.
Layer with frosting, decorate with swirls or sprinkles.