Terminology
Term | Description |
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BUCK Stablecoin | BUCK is a USD-pegged stablecoin users can mint by depositing collateral assets into Bucket. All BUCK transactions are publicly viewable on the Sui blockchain, and BUCK is backed by multiple types of over-collateralized digital assets, like BTC, ETH, and SUI. |
BKT Coin | BKT is Bucket Protocol's secondary token. By staking BKT, users can earn a share of the fees generated within the Protocol and can become liquidity providers by contributing to the BUCK:SUI pool. |
stBKT | Users can obtain stBKT tokens by staking BKT or injecting liquidity into the 'Tank'. Longer staking periods correlate with a higher weight inscribed in the stBKT, incentivizing longer-term commitments. |
Bottle & Bucket | The Bucket Protocol has a pool known as the Bucket that holds collateral (Bottle) from users. A Bottle is where users manage their loan. Different collateral types are segregated into distinct Buckets to insulate against potential risks. |
Tank | The Tank acts as a source of capital to liquidate the bottle when its Collateralization Ratio falls below 110%. Users can contribute to the Tank by depositing BUCK, which helps maintain the system's stability and solvency. |
Well | The Well collects various revenue streams, such as borrow fees, redemption fees, and flash loan fees. Users who stake BKT receive stBKT, giving them a share of these revenues. |
Term | Description |
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Total Value Locked | Total value locked in Bucket. Including collateral value and BUCK in tank pools. |
BUCK Supply | The total amount of BUCKs that exists in circulation. |
Collateralization Ratio(CR) | A financial metric that represents the proportion of collateral value held against a borrowed asset or debt. It ensures the lender is protected in case of default by the borrower. |
Leverage | A strategy that involves using borrowed funds (e.g., debt) to invest or trade in assets, aiming to amplify potential gains. However, leverage also increases the risk of losses. |
Total Collateralization Ratio | The ratio that measures the overall collateral value maintained in Bucket Protocol in relation to the total amount of debt. |
Minimal Collateralization Ratio | The minimum acceptable level of collateralization required by Bucket Protocol to ensure stability and safety of all participants. |
Auto Safe Borrow | Auto set collateral ratio to 120% for stable collateral or 180% for volatile assets. |
Borrow Fee | A one-time fee for BUCK issuance. |
Farm | Providing funds as a Liquidity Provider and receiving DEX fees and other rewards. |
Position | When a user deposits collateral and borrows BUCK, the deposited collateral and debt amount form a position, also known as a Bottle in Bucket Protocol. |
Recovery Mode Threshold | The threshold of CR to enter the Recovery Mode. |
Oracle | An external service that provides data for smart contract execution. In the case of Bucket Protocol, it refers to the current price of the collateral asset (e.g., $SUI). |
Name | Description |
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Borrow | Deposit collateral and borrow BUCK stablecoin. |
Repay | Repay BUCK debt and reclaim the deposited collateral. |
Redeem | Burning a token grants ownership of the specific underlying collateral asset. It's essential to emphasize that anyone holding BUCK can initiate this process. |
Liquidate | Liquidation occurs when an individual position falls below the minimum collateral ratio (min CR) to ensure the overall safety of the protocol. |
Arbitrage | The pursuit of profit in a risk-free manner while also ensuring the stability of the protocol. |
Last modified 4mo ago