🔉 Bucket Research: BUCK and CDPs on Sui!

[{"type":"paragraph","children":[{"text":"Bucket provides collateralized debt positions (CDPs) and fixed-cost borrowing on Sui. Users can mint the BUCK stablecoin by collateralizing assets such as SUI, LSTs, and ETH. The protocol stabilizes the peg via PSM, redemption, and the Tank mechanism, and benefits from the rollout of native stablecoins on Sui. This "},{"type":"link","url":"https://blog.jucoin.com/category/crypto-compass/token-insights/","children":[{"text":"Token Insights"}]},{"text":" piece systematically analyzes its positioning, core mechanisms, the BUT token, and ecosystem roadmap."}]},{"type":"paragraph","children":[{"text":"Summary: Bucket is a major CDP protocol on Sui: post collateral → borrow BUCK with predictable fees; maintain the peg using PSM/redemptions/Tank; BUT is used for governance/incentives; the ecosystem is growing alongside Sui’s native stablecoin expansion."}]},{"type":"paragraph","children":[{"text":""}]},{"type":"heading-two","children":[{"text":"🟠 What is Bucket?","bold":true}]},{"type":"paragraph","children":[{"text":"Bucket calls itself a “decentralized stablecoin protocol.” Users deposit collateral into the contract to open CDPs and mint BUCK, a USD-pegged stablecoin. The project emphasizes “fixed (or predictable) borrowing costs” to reduce funding uncertainty. Official docs state BUCK is over-collateralized and supports multiple collateral types (SUI, SUI LSTs, ETH, etc.)."}]},{"type":"heading-three","children":[{"text":"🟠 Why on Sui?","bold":true}]},{"type":"paragraph","children":[{"text":"In 2024, "},{"type":"link","url":"https://blog.ju.com/navi-sui-lending-analysis/","children":[{"text":"Sui"}]},{"text":" onboarded native stablecoins (USDC, AUSD, FDUSD, USDY), significantly improving DeFi capital efficiency. Its Move object model plus parallel execution allow collateralization and liquidations to be processed concurrently with low latency—well-suited to Bucket’s high-frequency settlement needs."}]},{"type":"heading-two","children":[{"text":"🔻 Architecture and Mechanisms: BUCK’s “Three-Pronged” Peg","bold":true}]},{"type":"heading-three","children":[{"text":"🟠 PSM: 1:1 Channels with USDC/USDT"}]},{"type":"paragraph","children":[{"text":"The PSM maintains its own vault with a minimum collateral ratio of 100%, enabling direct 1:1 swaps between BUCK and USDC/USDT (PSM in fee 0%, PSM out 0.3%), which quickly pulls price back to $1 during deviations."}]},{"type":"heading-three","children":[{"text":"🟠 Redemptions: Face-Value Swap for Collateral, Prioritizing Low-CR Vaults"}]},{"type":"paragraph","children":[{"text":"BUCK holders can redeem at face value for any whitelisted collateral. The system reduces debt from vaults in ascending order of collateralization ratio, protecting overall solvency (exceptions include TCR < 110% or redemptions disabled within 14 days of deployment, both codified in rules)."}]},{"type":"heading-three","children":[{"text":"🟠 Tank and Liquidations: Settling Debt with BUCK to Receive Collateral"}]},{"type":"paragraph","children":[{"text":"When a vault is liquidated, the Tank repays debt by burning BUCK and receives collateral in return, allowing participants to acquire collateral at a discount. This sustains system solvency and reinforces the peg. Sui’s ecosystem directory lists PSM/CDP/Tank/Redeem as a coordinated “stability combo,” enabling developers to integrate them modularly."}]},{"type":"heading-three","children":[{"text":"🟠 Technical Notes: Why Bucket Fits Sui"}]},{"type":"paragraph","children":[{"text":"Sui’s object model and parallel execution let independent transactions confirm simultaneously, reducing congestion risk during redemptions and liquidations. Bucket’s modules align with Move’s object-centric design (collateral, vaults, PSM vaults are all objects), recording “who holds what and when” more directly."}]},{"type":"heading-two","children":[{"text":"🟠 Fixed Cost and Product Form","bold":true}]},{"type":"paragraph","children":[{"text":"The website and socials repeatedly stress “fixed rate/predictable cost,” designing leverage and compounding paths for users “long SUI and BTC/ETH,” reducing interest-rate volatility in position management. With native Sui stablecoins live, BUCK–USDC/FDUSD/USDY trading/settlement routes are smoother, offering a practical “USD base” for collateralized borrowing and cross-protocol liquidity."}]},{"type":"heading-two","children":[{"text":"🟠 Token and Economic Model: BUCK vs. BUT","bold":true}]},{"type":"bulleted-list","children":[{"type":"list-item","children":[{"text":"BUCK: Bucket’s USD-pegged stablecoin."}]},{"type":"list-item","children":[{"text":"BUT: The protocol token used for governance, incentives, and ecosystem distribution (with a deBUT locking model). The terminology page clearly distinguishes their roles and data scopes."}]}]},{"type":"heading-three","children":[{"text":"🟠 BUT Supply and Circulation"}]},{"type":"paragraph","children":[{"text":"The official"},{"type":"link","url":"https://www.bucketprotocol.io/but?utm_source=chatgpt.com","children":[{"text":" BUT"}]},{"text":" overview and dashboards show: total supply 1 billion; circulating ~395 million (time-varying), plus cumulative slashing and staking/unlock metrics. Some third-party trackers list a public sale window and size in 2025-01. Official sources and reputable aggregators prevail."}]},{"type":"heading-three","children":[{"text":"🟠 deBUT: Updated Locking and Incentive Model"}]},{"type":"paragraph","children":[{"text":"In an Aug 2025 "},{"type":"link","url":"https://medium.com/%40bucketprotocol/introducing-the-new-debut-model-choice-clarity-and-aligned-incentives-59b409abf206","children":[{"text":"Medium"}]},{"text":" post, the team updated deBUT to bind long-term participants via a clearer lock–weight–incentive relationship, aiming to “make the system friendlier to long-term supporters.”\n"}]},{"type":"heading-two","children":[{"text":"🟠 Ecosystem Position and Data Corroboration","bold":true}]},{"type":"heading-three","children":[{"text":"Stablecoin Indicators"}]},{"type":"paragraph","children":[{"text":"Aggregator dashboards show BUCK market cap around $69.66 million, along with issuance/redemption flows, reflecting Bucket’s share in Sui’s stablecoin track. Price-tracker pages also show BUCK trading tightly around $1 over the past 24 hours."}]},{"type":"heading-three","children":[{"text":"🟠 Official Milestones"}]},{"type":"paragraph","children":[{"text":"The team’s retrospectives note that after launch, Bucket entered Sui’s top-10 protocols with TVL climbing to about $38 million (historical reading; current TVL should follow real-time dashboards/official disclosures)."}]},{"type":"heading-three","children":[{"text":"🟠 Multi-Collateral and Front-End Tools"}]},{"type":"paragraph","children":[{"text":"Ecosystem directories and wallet/aggregator pages indicate Bucket supports SUI, LSTs, ETH, BTC, and other collateral types, and offers a Swap SDK so front ends can serve as stable exchange gateways."}]},{"type":"paragraph","children":[{"text":"Some public dashboards have yet to standardize protocol-level TVL for Bucket, but BUCK market cap, trading pairs, and mechanism modules cross-validate its activity and importance in Sui DeFi."}]},{"type":"heading-two","children":[{"text":"🟠 Recent Progress and Timeline","bold":true}]},{"type":"paragraph","children":[{"text":"Mechanism hardening: completed PSM/redemption/Tank docs and parameters; clarified fees and thresholds."}]},{"type":"paragraph","children":[{"text":"Asset expansion/activities: socials announced acceptance of certain LP tokens as collateral and ecosystem campaigns, improving composability and reach."}]},{"type":"paragraph","children":[{"text":"BUT data pages: launched BUT overview and staking stats, revealing total supply, circulation, and deBUT metrics."}]},{"type":"heading-two","children":[{"text":"🟠 Future Plans","bold":true}]},{"type":"numbered-list","children":[{"type":"list-item","children":[{"type":"paragraph","children":[{"text":"Stablecoin depth: continue “strong peg” via PSM × redemptions; broaden BUCK–USDC/FDUSD/USDY accessibility across primary and secondary markets."}]}]},{"type":"list-item","children":[{"type":"paragraph","children":[{"text":"Collateral spectrum: expand LST/LP/blue-chip collateral under a risk framework, with finer-grained liquidation parameters."}]}]},{"type":"list-item","children":[{"type":"paragraph","children":[{"text":"Token and governance: lengthen the “lock–weight–revenue share” design around BUT/deBUT to increase market-making and risk participation. The above projections align with official direction."}]}]}]},{"type":"heading-two","children":[{"text":"🟠 FAQ","bold":true}]},{"type":"paragraph","children":[{"text":"🟧 How are borrowing costs made predictable?\nBy exposing fixed/predictable rates and clear parameters, users can estimate carry at vault creation, reducing uncertainty from “usage-driven rate spikes.”"}]},{"type":"paragraph","children":[{"text":""}]},{"type":"paragraph","children":[{"text":"🟧 Why does BUCK trade close to $1?\nThrough the 1:1 PSM channel, face-value redemptions, and Tank-backed liquidations, creating arbitrage and mean-reversion forces when price deviates."}]},{"type":"paragraph","children":[{"text":""}]},{"type":"paragraph","children":[{"text":"🟧 What’s BUCK’s relationship with Sui’s native stablecoins?\nIn 2024, Sui onboarded USDC, AUSD, FDUSD, and USDY, giving Bucket smoother pegs, market-making, and settlement environments."}]},{"type":"paragraph","children":[{"text":""}]},{"type":"paragraph","children":[{"text":"🟧 What’s the difference between BUT and BUCK?\nBUCK is the stablecoin users mint and use; BUT is the protocol token for governance and incentives (including the deBUT locking model)."}]},{"type":"paragraph","children":[{"text":""}]},{"type":"paragraph","children":[{"text":"🟧 Is there an authoritative TVL figure now?\nHistorically, Bucket entered Sui’s top-10 with TVL ≈ $38m; real-time scale should follow official and reputable dashboards, while BUCK market cap and depth serve as indirect evidence."}]},{"type":"heading-two","children":[{"text":"🟠 Key Takeaways","bold":true}]},{"type":"paragraph","children":[{"text":"Bucket: a Sui-based CDP protocol supporting multi-asset collateral and fixed-cost BUCK borrowing."}]},{"type":"paragraph","children":[{"text":"Peg toolkit: PSM (1:1 USDC/USDT) + redemptions + Tank jointly maintain $1."}]},{"type":"paragraph","children":[{"text":"BUT/deBUT: 1B total supply, circulating and staking data displayed; governance/incentives are iterating."}]},{"type":"paragraph","children":[{"text":"Ecosystem fit: Sui’s native stables, parallel execution, and object model reduce congestion and liquidation friction."}]},{"type":"paragraph","children":[{"text":"Data corroboration: BUCK market cap ~ $69.66m and multi-collateral whitelist highlight Bucket’s importance in Sui’s stablecoin track."}]},{"type":"paragraph","children":[{"text":"\n"},{"type":"topic","character":"Jucom","children":[{"text":""}]},{"text":" "},{"type":"topic","character":"JuComVietnam","children":[{"text":""}]},{"text":" "},{"type":"topic","character":"JuCoin","children":[{"text":""}]},{"text":" "},{"type":"topic","character":"CryptoNews","children":[{"text":""}]},{"text":" "}]}]