# What is Bucket Protocol？

**Bucket** is a **CDP-based stablecoin protocol on Sui**, purpose-built for **capital efficiency**.

Users deposit supported on-chain assets as collateral to borrow **USDB** (a USD-pegged stablecoin issued by Bucket). With USDB, they can either **loop exposure** into a long-term leverage position or **unlock liquidity without selling** the core asset. 

Stablecoin holders can swap their **stablecoins (e.g., USDC, USDT) to USDB**, then **deposit into the sUSDB Savings Pool** for competitive, flexible yield.

***

### The problem we solves

1. **Low capital efficiency**\
   Many borrowing models keep LTVs low because safety margins and liquidation logic are complex, leaving usable capital under-deployed.
2. **Unpredictable funding costs**\
   Variable, supply–demand driven rates swing widely, making long-horizon planning and buffers hard to manage.
3. **Opaque risk boundaries**\
   When multiple asset risks are blended within a position and funding rates are volatile, the effective liquidation line becomes hard to track, raising forced-exit risk.
4. **Derivatives capital trapped**\
   Productive collateral in derivative forms often cannot be financed efficiently, limiting leverage construction or liquidity access.

***

### Bucket’s solution

* **High LTV(Loan to Value)**\
  Enabled by **per-asset isolation** and **efficient, protocol-run liquidations**, so more collateral value can be financed while keeping rules explicit.
* **Fixed interest rates**\
  Funding costs are known upfront and remain predictable, so you can clearly grasp long-term cost and plan buffers and drawdown room deliberately—not reactively.
* **Predictable risk line**\
  A simple, transparent liquidation rule and a live **liquidation price** surface a clear boundary for management cadence.
* **Unlock derivatives collateral productivity**\
  By **supporting select derivative-type collateral**, users can build disciplined leverage or free working liquidity against positions that were previously hard to finance.


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.bucketprotocol.io/introduction/what-is-bucket-protocol.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.