About Bucket Protocol

Bucket Protocol enables users to enhance their financial efficiency with crypto assets by depositing them into a smart contract ('Bottle'). This allows them to generate the stablecoin $BUCK, pegged to the US dollar. Bottles must maintain a collateral ratio of at least 110%. $BUCK holders can redeem their stablecoins for collateral at any time. A redemption mechanism and automatically adjusted fees maintain $BUCK's peg at $1. The protocol uses immediate liquidation to encourage stable deposits and rebalance risk, resulting in lower collateral requirements and overall stability driven by user behavior and profit incentives, not strict controls or monetary policies.