Bucket Reveals Stablecoin Basket for Riptide Hackathon Submission

With the bucket protocol, functionally equivalent assets can be packaged into one canonical token standard on Solana.

Stablecoin Basket by Bucket

Bucket will offer a stable coin basket, as announced in the recent Riptide hackathon submission, to allow users to exchange any approved stablecoins they hold like USDC, USDT. UXT, UST, etc., for the native token  $BUCK.

Bucket announced the update in the recently concluded Solana Riptide Hackathon and later with a Twitter thread on March 22. According to the announcement, the goal is to create a standard interface to 

Reduce liquidity fragmentation,

lower concentrated risk,

create a seamless stablecoin experience across Solana, and

Allow DeFi participation in a single step

As per the website, the native token, $BUCK, will become directly usable for users as more protocol and platform integrations occur. Users will not need to make additional swaps. Furthermore, since $BUCK is an SPL token, users can do anything they usually would with any other fungible token.

“Bucket protocol provides a way to wrap functionally isomorphic assets on Solana into one canonical token standard. While the idea is extendable to any asset class such as collateral or staked tokens, the first iteration of the protocol explores this idea in the context of stablecoins”. Bucket explains in their Litepaper and adds, “$BUCK aims to be a stablecoin of stablecoins by composing a diversified bucket of stablecoins that increases decentralization and aggregates liquidity.”

Source

It’s interesting to learn that the Bucket team was formed just a few weeks before the hackathon. In just three weeks, they wrote for the smart contracts, a CLI, a SDK, a dApp, and a litepaper. Then, after deploying to DevNet one week before the hackathon, they could complete the final submission. 

According to the announcement, they could maintain such a pace because they built everything on top of existing frameworks and protocols such as Anchor, Saber, Pyth Network, Switchboard, and Crate Protocol. Moreover, Bucket will continue to collaborate with other protocols in the Solana ecosystem, such as Ratio Finance, which aims to de-risk DeFi.

What is Bucket?

Bucket protocol creates a canonical mint for a USD-pegged token on Solana by building an aggregation layer on top of existing stablecoins across Solana. As a result, Bucket provides a unified stablecoin interface to trading protocols and additional liquidity to stable swap protocols. At the same time, consumers benefit from a diversified stablecoin index with an insurance fund and automated yield, making participation in DeFi a one-step process.

Where to find Bucket:

Source web3wire.news

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