Overview
Bucket Protocol is a decentralized finance (DeFi) platform on the SUI blockchain that enables users to mint $BUCK, a USD-pegged stablecoin, by depositing supported crypto assets as collateral. Designed to offer fixed interest rates and low collateral requirements, Bucket Protocol provides a reliable and efficient means for users to access liquidity without selling their assets. The protocol employs multiple mechanisms to maintain the stability of $BUCK, ensuring it remains closely pegged to the US dollar.
Key Features
- Fixed Interest Rates: Borrowers benefit from predictable, fixed interest rates, allowing for better financial planning and risk management.
- Low Collateralization Requirement: With a minimum collateral ratio of 110%, users can maximize capital efficiency while maintaining system stability.
- Multi-Collateral Support: Supports various digital assets, including $SUI, $BTC, $ETH, and Liquid Staking Tokens (LSTs), providing flexibility for users.
- Robust Stability Mechanisms: Utilizes features like the Peg Stability Module (PSM), Tank, and Recovery Mode to maintain the $1 peg of $BUCK.
- sBUCK Savings Pool: Users can stake $BUCK to receive sBUCK, earning a fixed savings rate funded by the protocol's revenue.
Tokenomics
- Token Name: BUT
- Total Supply: 1,000,000,000 BUT
- Allocation:
- Vesting Schedule: Tokens are released over time, with specific lock-up periods for team and advisor allocations.
Why Choose Bucket Protocol
Bucket Protocol stands out in the DeFi landscape for its combination of fixed interest rates, low collateral requirements, and robust stability mechanisms. By supporting multiple collateral types and offering predictable borrowing costs, it provides users with a flexible and secure platform to access liquidity. The protocol's commitment to maintaining the $1 peg of $BUCK ensures reliability, making it an attractive option for both borrowers and investors in the SUI ecosystem.
FAQs
What is Bucket Protocol?
Bucket Protocol is a decentralized platform on the SUI blockchain that allows users to mint $BUCK, a USD-pegged stablecoin, by depositing supported crypto assets as collateral.
How does Bucket Protocol maintain the $1 peg of $BUCK?
The protocol employs several mechanisms, including the Peg Stability Module (PSM), Tank, and Recovery Mode, to ensure $BUCK remains closely pegged to the US dollar.
What assets can be used as collateral?
Users can deposit various digital assets, such as $SUI, $BTC, $ETH, and Liquid Staking Tokens (LSTs), to mint $BUCK.
What are the interest rates for borrowing?
Bucket Protocol offers fixed interest rates, providing borrowers with predictable borrowing costs.
How can I earn rewards with Bucket Protocol?
By staking $BUCK, users receive sBUCK, which earns a fixed savings rate funded by the protocol's revenue.
Is there a minimum collateralization ratio?
Yes, the protocol requires a minimum collateralization ratio of 110% to ensure system stability.
What is the BUT token?
BUT is the native token of Bucket Protocol, used for governance and staking within the platform.
How can I participate in the Bucket Protocol ecosystem?
Users can mint $BUCK by depositing collateral, stake $BUCK to earn sBUCK, and participate in governance by staking BUT tokens.
