BUCK Savings Rate (BSR) and sBUCK

sBUCK - Native Yield-bearing Stablecoin

What is BSR?

BUCK Savings Rate (BSR) is an addition to the Bucket Protocol that allows any BUCK holder to earn savings in BUCK.

BUCK does not automatically earn savings; you must activate the BSR by staking BUCK into a staking pool. Users get sBUCK as a receipt token after they staked BUCK into the staking pool. It is important to note that BUCK can always be redeemed immediately, as there are no liquidity constraints, and it can ONLY be retrieved from the depositing account.

BUCK custodians can benefit significantly from integrating the functionality to activate the BSR on BUCK in their custody. Similarly, any decentralized exchange, wallet, or dapp can allow users to earn the BSR by integrating the functionality.

sBUCK - Native Yield-bearing Stablecoin

As previously outlined, when users deposit BUCK into the staking pool, they receive sBUCK as a receipt token. The staking pool accrues a portion of the interest fees collected from Bucket CDP activities, denominated in BUCK. This arrangement means that the value of BUCK that each sBUCK represents increases over time; therefore, the conversion rate from sBUCK to BUCK gradually rises. While the value of BUCK is pegged to remain stable at $1, the value of sBUCK is designed to appreciate over time.

Featured by Sparkling Finance