By Alex Liu, Foresight News
With the explosion of Sui ecology, what wealth opportunities are there for players on the chain? Foresight News has specially launched the "Gold Rush Manual Sui Special" to help readers harvest potential token airdrops.
Bucket Protocol is the largest decentralized stablecoin protocol in the Sui ecosystem. Its TVL has increased by 145% to US$22 million in the past month.
sBUCK Deposit APY
While developing rapidly, Bucket has launched a points system that can be exchanged for future BUT airdrops of the protocol token, and stated that the points ranking and TGE (token generation event) will end in the fourth quarter. The short-term airdrop activities and the considerable stablecoin returns (APY fluctuates around 20%) even without considering the airdrops make participating in the protocol more cost-effective.
Bucket announced the points activity on the medium blog
Before we take action, let’s briefly introduce the functions and highlights of Bucket Protocol.
Protocol features and highlights
Similar to Marker (now USDS and SKY), which issued decentralized stablecoin DAI on Ethereum and L2, Bucket issued decentralized stablecoin BUCK on Sui. 1 BUCK is anchored to the value of 1 US dollar, and the value of BUCK is supported by over-collateralized Sui, LST or other crypto assets. The protocol has been running smoothly for more than a year since it went online on June 29 last year, and there has been no obvious depegging incident for BUCK.
Bucket is a development team in the Sui ecosystem, and has sponsored many ecosystem events or participated in Hackathon as a judge. At the same time, they have also received strong support from the Sui Foundation, received ecosystem grants, and participated in Bucket to get SUI token incentives.
Highlights:
Fixed-interest liquidity: Borrowers obtain liquidity at a fixed interest rate and use BUCK in the DeFi market without worrying about interest fluctuations.
Bucket Professional Edition Interface
As shown in the figure, the loan interest rate is fixed at 5.5%. Even if there is a one-time loan fee of 0.5%, the cost of using the loaned funds for one year is only 6%.
Low collateral ratio (minimum 110%): Instant and efficient liquidation ensures rapid liquidation of positions with insufficient collateral ratios, supports low collateral ratios and maintains system stability. (Due to SUI token incentives, after lending BUCK, the collateral can also generate APY interest of up to 20%)
Mechanisms such as arbitrage and Peg Stability Module (PSM) peg BUCK to $1, and BUCK can be exchanged 1:1 with stablecoins such as USDC and USDT.
Governance-free operation: All parameters are preset and controlled by algorithms, allowing autonomous and efficient operation without governance intervention.
Earn money with sBUCK: When users deposit BUCK into the staking pool, they receive sBUCK as a receipt token. sBUCK earns a fixed return through the BUCK Savings Rate (BSR), which is funded by the revenue of Bucket Protocol.
Use in Sui Ecosystem Projects: BUCK can be used in various projects within the Sui ecosystem, enhancing its practicality and making it a versatile asset for transactions and other applications.
Sui Ecosystem Project Integrated with Bucket
Airdrop rules and gameplay
Bucket's snapshot for old users was completed on September 23, and everyone is on the same starting line in the newly launched points ranking event.
There are 3 ways to earn points:
Open a lending position on Bucket: When you open a collateralized debt position (CDP) by depositing SUI LST (e.g. afSUI, haSUI, vSUI) as collateral to borrow BUCK, you will earn points. For every BUCK you borrow, you will earn 1 point per hour.
Deposit in sBUCK Deposit Pool (~20% APY): For every 1 sBUCK deposited, you will receive 1 point every hour.
Earn extra points for integrated projects: 1.1 points per hour for every 1 ST-SBUCK (Strater’s version of staked sBUCK) deposited in the BUCK Savings Vault.
Start accumulating points:
Step 1: If you already have a position, please go to the rewards or dashboards page first, click the "Start to earn points" button to submit the transaction to start points. If you do not have any existing positions, you can skip this step.
Step 2: Start accumulating points according to the points system rules, including opening a CDP on Bucket, depositing sBUCK into the deposit pool, or depositing BUCK into the Strater Savings Vault.
Step 3: Visit the Liquidlink Points page and under the Bucket branch, view the leaderboard and detailed points.
Recommended gameplay:
If you do not hold SUI and are just starting to participate in the Sui ecosystem DeFi, the easiest way is to convert your own stablecoins into BUCK and deposit them into Bucket, accumulating Bucket airdrop points on the basis of obtaining an annualized return of ~20% stablecoins.
Note: The most commonly used stablecoin on Sui is the Ethereum mainnet version of USDC bridged through the Wormhole Portal Bridge. If the stablecoin imported from Solana, Arbitrum, or BNB through the Wormhole cross-chain bridge cannot be used directly, it can be exchanged for BUCK through the Swap function of Bucket or Aftermath.
