New Opportunities in the Sui Ecosystem: Analysis of the Bucket Protocol Airdrop Event

As the largest decentralized stablecoin protocol in the Sui ecosystem, Bucket Protocol has recently shown impressive performance. Its total locked value (TVL) has increased by 145% over the past month, reaching 22 million dollars.

In order to further promote ecological development, Bucket has launched a points system, where users can participate to gain the opportunity to exchange for the future protocol token BUT. This event is expected to conclude in the fourth quarter, and the points leaderboard will also be announced along with the Token Generation Event (TGE).

Even without considering the potential airdrop rewards, the annual percentage yield (APY) provided by Bucket for stablecoins is quite substantial, currently fluctuating around 20%. This makes participation in the protocol highly cost-effective for users.

Overview of Bucket Protocol

Bucket has issued a decentralized stablecoin BUCK on the Sui network, which is pegged to the value of the US dollar at a 1:1 ratio. The value of BUCK is supported by over-collateralized Sui, LST, or other crypto assets. Since its launch on June 29 of last year, BUCK has remained stable without any significant de-pegging events.

Main Features:

1. Fixed Rate Lending: Borrowers can obtain BUCK liquidity at a fixed rate without worrying about interest rate fluctuations.

2. Low collateral rate: The minimum collateral rate is 110%, ensuring system stability.

3. Stability Mechanism: Ensure that BUCK is pegged to the US dollar at a 1:1 ratio through mechanisms such as arbitrage and the Peg Stability Module (PSM).

4. Automated Operations: All parameters are preset and controlled by algorithms, without the need for human intervention.

5. sBUCK Earnings: Users deposit BUCK to obtain sBUCK and enjoy fixed returns.

6. Ecosystem Integration: BUCK can be used in multiple projects within the Sui ecosystem, enhancing its utility.

Airdrop Event Details

The Bucket completed a snapshot for old users on September 23rd. The newly launched points leaderboard activity allows all participants to start on the same starting line.

How to earn points:

1. Lending position: Deposit SUI LST (such as afSUI, haSUI, vSUI) as collateral to borrow BUCK, earning 1 point for every 1 BUCK borrowed per hour.

2. sBUCK Deposit: For every 1 sBUCK deposited, you earn 1 point every hour.

3. Additional rewards for integrated projects: For every 1 ST-SBUCK (the Stater version of staked sBUCK) deposited, receive 1.1 points per hour.

Participation steps:

1. If you have an existing position, go to the rewards or dashboards page and click "Start to earn points" to begin earning points.

2. Accumulate points according to the rules: open a CDP, deposit sBUCK, or deposit BUCK into the Strater Savings Vault.

3. Check the leaderboard and detailed points situation under the Bucket branch on the Liquidlink points page.

Recommended Strategy

For new users in the Sui ecosystem, the simplest way to participate is to exchange stablecoins for BUCK and deposit them into the Bucket. This allows you to earn approximately 20% annual yield on stablecoins while accumulating Airdrop points.

Note: The most commonly used stablecoin on the Sui network is the Ethereum mainnet USDC bridged through Wormhole (Portal Bridge). Stablecoins from other chains (such as Solana, Arbitrum, BNB) may need to be exchanged for BUCK through the Swap feature of Bucket or Aftermath.

Conclusion

Bucket Protocol, as an important stablecoin project in the Sui ecosystem, is expected to become one of the core infrastructures of this ecosystem. Its upcoming token and airdrop activities not only provide users with participation opportunities but also inject new momentum into the development of the DeFi ecosystem on the Sui network. As projects on Sui continue to mature, Bucket is expected to play an increasingly important role in the decentralized finance sector, providing users with stable returns and an important channel for participating in the DeFi ecosystem.