Introduction

Bucket Protocol is a system that allows people with crypto assets to improve their financial efficiency without unforeseen interest payments. Users place crypto assets into a smart contract and set up a collateralized debt position(CDP). They can immediately generate liquidity by borrowing a stablecoin, $BUCK, whose value is pegged to the US dollar. A Bottle must maintain a collateral ratio level of at least 110%. At any time, $BUCK holders can exchange their stablecoins for collateral. Also, $BUCK's value remains consistently at $1, thanks to a redemption mechanism and automatically adjusted fees.

Bucket Protocol uses a method for immediate liquidation that encourages stable deposits and rebalances between high-risk and low-risk Bottles. This results in a lower collateral requirement than other systems, ensuring overall stability. The protocol's stability comes mainly from the user's economic behavior and pursuit of profit rather than heavy-handed control or monetary policies.