# 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.

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### 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.

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### 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.