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Bucket Protocol

CDP protocol on Sui, borrowing decentralized stablecoin.

Mechanism

  1. Deposit $SUI as collateral and borrow $BUCK with minimal collateral ratio 115%
  2. Repay with $BUCK and take back collateral in the form of $SUI
  3. Redeem 1:1 value of $SUI from protocol using $BUCK
  4. Deposit $BUCK to Tank to earn incentive token $BKT
  5. Provide liquidity for SUI/BUCK on DEX also earn $BKT
  6. Stake $BKT to share protocol revenue, coming from Borrow Fee, Redemption Fee and Flash-Loan Fee

Flow chart

bucket-protocol

FAQ

Q: Why should I deposit $SUI and borrow $BUCK?

Bucket Protocol enable users to extract stable value from $SUI with zero interest to pay, only a one-time borrow fee.

Q: Why should I deposit $BUCK to the Tank?

Bucket Protocol force the Tank to absorb bad debt. If users deposit $BUCK in Tank, they're helping protocol and make it more healthy. As the compensation of taking this risk, Bucket Protocol will reward Tank depositors with $BKT.

Q: Why should I add liquidity to SUI/BUCK on DEX and stake the LP token?

Bucket Protocol is fully decentralized, which rely on liquidators to liquidate debt with Collateral Ratio lower than 115%. Adding SUI/BUCK liquidity on DEX, will create a better environment with lower slippage for liquidators. As the compensation of taking this risk, Bucket Protocol will reward liquidity providers with $BKT.

Q: What can I do with $BKT?

$BKT serve as an incentive token in Bucket Protocol. Anyone who makes the protocol a better place should take part of the revenue from the protocol, which comes from three ways: Borrow Fee, Redemption Fee and Flash-Loan Fee. Staking $BKT allow users to share these profits, which are in the form of $SUI and $BUCK, and motivate them to keep helping the Bucket Protocol as well as the whole DeFi ecosystem on Sui.

Modules

buck

  1. Assemble other modules
  2. Burn and mint $BUCK

bucket

  1. Handle collateral when borrow, repay and redeem
  2. Sort debtor positions by collateral ratio

bottle

  1. Record debtor positions

tank

  1. Hold deposited $BUCK for liquidation
  2. Distribute collateral to $BUCK depositers after liquidation

bkt

  1. $BKT token distribution
  2. Reward tank depositors and SUI/BUCK liquidity providers with $BKT

well

  1. Collect fee from borrowing, redemption and flash loan
  2. Distribute fee to $BKT staker

About

Core modules of Bucket Protocol: Bucket, Well, Tank and Bottle

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