Terminology

Component

Term	Description
BUCK Stablecoin	BUCK is a USD-pegged stablecoin that 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 SUI, SUI LST, and ETH.
$BUT	The native protocol token of Bucket.
$deBUT	By staking $BUT, users receive $deBUT, which can boosts BSR, provides voting power, and allows them to earn a share of Bucket Protocol’s revenue.
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 loans. 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 MCR(Minimal Collateralization Ratio). Users can contribute to the Tank by depositing BUCK, which helps maintain the system's stability and solvency.

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

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.