Terminology

Component
Term
Description
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.
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Term
Term
Description
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).
Action
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Name
Description
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.

Term	Description
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
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
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