What is Bucket Protocol BUCK Stablecoin (BUCK)?

Quick Facts

  • Blockchain: Sui Network
  • Type: Over-collateralized, decentralized stablecoin
  • Peg: 1:1 with the US Dollar
  • Minting mechanism: Collateralized Debt Position (CDP)
  • Supported collateral: SUI, BTC, ETH, and Liquid Staking Tokens (LST)
  • Governance token: BKT
  • Yield token: sBUCK (staked BUCK)

Introduction

BUCK is the native stablecoin of Bucket Protocol, a leading decentralized finance platform built on the Sui blockchain. Designed to maintain a stable value of $1 USD, BUCK offers users a reliable, censorship-resistant digital currency for use across the Sui DeFi ecosystem.

Unlike centralized stablecoins, BUCK is minted entirely on-chain through a transparent collateralization process, making it trustless and permissionless.

History & Background

Bucket Protocol was developed to bring a robust, decentralized stablecoin infrastructure to the Sui network. As Sui gained traction for its high throughput and low-latency architecture, the need for a native, decentralized stablecoin became clear. Bucket Protocol emerged as the leading CDP protocol in the ecosystem, positioning BUCK as the programmable currency of Sui DeFi.

The protocol gradually expanded its supported collateral types and refined its risk parameters as the ecosystem matured.

How Bucket Protocol BUCK Stablecoin Works

BUCK is created through a Collateralized Debt Position (CDP) system. Users deposit crypto assets — such as SUI, BTC, ETH, or LSTs — as collateral into the protocol. Smart contracts then mint BUCK against that collateral at an over-collateralized ratio, meaning the collateral value always exceeds the value of BUCK issued.

This over-collateralization is the primary defense against market volatility. If collateral value drops below a threshold, the protocol can liquidate positions to protect the peg.

Bucket Protocol also deploys several stability modules:

  • PSM (Peg Stability Module): Allows direct swaps to reinforce the $1 peg.
  • Tank: A Sui-based lending pool integrated with BUCK.
  • Redeem module: Enables BUCK redemption directly against protocol collateral.

Tokenomics

BUCK has a fully demand-driven supply model. Tokens are minted when users open collateral positions and burned when positions are closed or repaid. This elastic supply ensures BUCK in circulation always reflects actual backed demand.

Users can stake BUCK to receive sBUCK, which earns yield from protocol activity. The separate BKT governance token allows holders to vote on protocol parameters and upgrades.

Circulating supply ? 25.97 million BUCK
Total supply ? 25.97 million BUCK
Max supply ? -- BUCK
Updated 20h ago

Ecosystem & Use Cases

BUCK serves multiple roles within the Sui DeFi ecosystem:

  • Stable trading pair on decentralized exchanges such as Cetus.
  • Collateral for other DeFi protocols on Sui.
  • Yield generation through sBUCK staking.
  • Liquidity provision in BUCK pairs for trading fee rewards.

The protocol also offers a Bucket Swap SDK, enabling frontend operators to build stable swap interfaces and earn volume-based rebates.

Team, Governance & Community

Bucket Protocol is governed by BKT token holders, who can propose and vote on changes to system parameters, risk settings, and collateral types. This decentralized governance model ensures the protocol evolves according to community consensus.

The team maintains active channels on Twitter, Discord, Medium, and GitHub, supporting a growing community of Sui DeFi users.

Advantages

  • Over-collateralized design provides a strong safety buffer against volatility.
  • Multi-asset collateral support (SUI, BTC, ETH, LSTs) diversifies systemic risk.
  • Built on Sui, a high-throughput chain with sub-second finality.
  • Transparent on-chain operations allow anyone to verify collateral backing at any time.
  • sBUCK staking lets users earn yield without exiting the stablecoin.

Risks & Challenges

  • Collateral volatility risk: Rapid price drops in collateral assets can trigger liquidations.
  • Sui ecosystem dependency: BUCK's adoption is closely tied to the growth of the Sui network.
  • Smart contract risk: Bugs or exploits in CDP logic could affect protocol solvency.
  • Competition: Other CDP stablecoins on emerging L1s compete for the same user base.

Long-Term Vision

Bucket Protocol aims to make BUCK the primary programmable currency powering the Sui DeFi economy. By expanding supported collateral types, deepening integrations with Sui dApps, and refining its stability modules, the protocol seeks to grow BUCK into a foundational liquidity layer — enabling everything from lending and trading to payments and cross-protocol composability within the broader Sui ecosystem.

Frequently Asked Questions

BUCK is an over-collateralized, decentralized stablecoin built on the Sui blockchain by Bucket Protocol. It is designed to maintain a stable value of $1 USD and is minted through a Collateralized Debt Position (CDP) mechanism.

Users deposit crypto assets such as SUI, BTC, ETH, or Liquid Staking Tokens (LSTs) as collateral into Bucket Protocol. Smart contracts then mint BUCK at an over-collateralized ratio, ensuring collateral always exceeds the value of BUCK issued.

Over-collateralized means the total value of assets locked as collateral is always greater than the value of BUCK minted. This buffer protects the $1 peg even during periods of market volatility.

Bucket Protocol supports SUI, BTC, ETH, and various Liquid Staking Tokens (LSTs) as collateral. This multi-asset approach diversifies risk across the system.

sBUCK is staked BUCK. Users can stake their BUCK tokens to receive sBUCK and earn yield generated from protocol activity, while still benefiting from the stability of the underlying BUCK peg.

BKT is the separate governance token of Bucket Protocol. BKT holders can vote on protocol parameters and upgrades, while BUCK itself functions as the stablecoin used within the ecosystem.

BUCK can be traded on Sui-based decentralized exchanges like Cetus, used as collateral in other Sui DeFi protocols, and deployed in liquidity pools to earn trading fees and rewards.

Bucket Protocol uses a combination of over-collateralization, a Peg Stability Module (PSM), a Tank lending pool, and a redeem module. Together these tools maintain BUCK's $1 peg under various market conditions.