System Overview

Critical Components of Bucket Protocol

  1. Borrow $BUCK against $SUI (or other types of collateral) by opening a ‘​Bottle’

  2. Stake $B to earn the revenue earned by Bucket Protocol.

  3. Redeem 1 $BUCK for $1 worth of $SUI anytime.

What are the primary use cases of Bucket Protocol?

1. Borrow

Deposit your $SUI or other collateral into a "Bottle" to receive a loan in the form of $BUCK stablecoin. Ensure a collateral ratio of at least 110% is maintained; ideally, it should be over 150%. A one-off fee between 0.5% and 5% applies, plus fixed interest, determined by the loan demand.

2 . Stake

Stake your $BKT to receive $stBKT and become eligible for a share of the platform's revenue. Alternatively, pair your $BKT with $SUI to provide DEX liquidity and earn an additional $BKT.

3. Redeem

Exchange your $BUCK for an equivalent value in collateral. This functionality benefits collateral holders by providing an opportunity to extract value and also aids in maintaining $BUCK's pegged value. The rationale behind this will be explained in a later chapter.

Last updated