Anyone can unleash the power of interest-free borrowing
Bucket Protocol aims to be a DeFi Engine on Sui network. It allow users to draw 0% interest loans against $SUI $BTC $ETH and LST used as collateral. Loans are paid out in $BUCK - a USD pegged stablecoin backed by multiple types of crypto, and need to maintain a minimum collateral ratio of 110%. In addition to the collateral, the loans are secured by TANK containing $BUCK and by fellow borrowers collectively acting as guarantors of last resort. Learn more about these mechanisms under Liqudation! Bucket as a protoocl is non-custodial, immutable and governance-free. Learn more about the protocol!
All of borrower's position is over-collateralized, and the minimum collateral ratio is always maintained above 110%. In the event that the collateral ratio falls below 110%, the borrower's positions will be liquidated, and the loan will be repaid using $BUCK provided by TANK. The liquidated collateral will be distributed to TANK contributors in accordance with their percentage ownership. By using the flash loan and redeem functions, users have the ability to profit from any deviations in the $BUCK stablecoin's value from its pegged price of $1. Further details on this process are available in our guide on Flash Loans in Bucket.
・0% interest rate : Borrowing from Bucket incurs no interest charges, making it an affordable option for users. ・110% collateral ratio : Borrowers can obtain loans by providing collateral worth at least 110% of the loan amount, ensuring safety for both parties. ・Directly redeemable stablecoin: $BUCK, the stablecoin issued by Bucket, can be redeemed for the underlying collateral at face value, anytime. ・Multi-collateral support: Bucket supports $SUI, $BTC, $ETH, and LST, as collateral options, providing flexibility to users. ・Flash loans for arbitrageurs: Bucket offers Flash Loans, allowing arbitrageurs to interact with TANK and Bucket without holding any crypto assets, providing opportunities for profit. ・Price stabilization between $SUI and $BUCK: By using Flash Loans, arbitrageurs can help stabilize the price volatility between $SUI and $BUCK, increasing stability for users.
There are basically three different ways to generate revenue using Bucket : 1. Deposit $BUCK to the TANK and earn liquidation gains and $BKT rewards 2. Stake $BKT and earn revenue from Repay, redemption and flash loan fees 3. Add liquidity to $SUI / $BUCK pools and stake LP to receive $BKT