Is Bucket CDP Safe?
Risk Grade: C+ (36/100)
Bucket CDP is rated as elevated risk — multiple novel mechanisms and notable interaction risks.
Moderate risk — a well-designed CDP protocol leading the Sui stablecoin market, but correlated collateral liquidation risk and young ecosystem dependencies require careful monitoring.
Bucket Protocol is the leading CDP (Collateralized Debt Position) platform on Sui, allowing users to deposit SUI, BTC, ETH, or liquid staking tokens as collateral to borrow BUCK, an over-collateralized stablecoin pegged to $1. With $14M in TVL and integrations across major Sui DeFi protocols, BUCK holders can also earn yield via the sBUCK Savings Pool. The B- risk grade reflects its proven CDP model with real-time liquidation, balanced against correlated liquidation risk and Sui ecosystem dependencies.
TVL
$15M
Mechanisms
7
Interactions
5
Value Grade
D
Key Risks for Bucket CDP Users
If the crypto market crashes sharply, the collateral backing your BUCK loan could be liquidated — in extreme scenarios, the protocol may accumulate bad debt that causes BUCK to lose its $1 peg
BUCK's usefulness depends on continued support from other Sui DeFi protocols — if major platforms stop accepting BUCK, demand drops and the stablecoin could depeg
Sui is a relatively new blockchain — smart contract risks and infrastructure immaturity could affect the security of your collateral deposits
Top Risk Factors
- •BUCK stablecoin relies on real-time liquidation mechanisms — if oracle price feeds lag during rapid SUI price declines, undercollateralized positions may not be liquidated fast enough, creating bad debt
- •Multi-collateral CDP with SUI, BTC, ETH, and LSTs creates correlated liquidation risk — a broad crypto downturn triggers simultaneous liquidations across all collateral types
- •Sui ecosystem is relatively young — BUCK's utility and stability depend on continued growth of Sui DeFi integrations (Cetus, Navi, Scallop) that provide demand sinks for the stablecoin
How Bucket CDP Compares to Peers
Bucket CDP ranks #11 of 25 CDP protocols (above-median). At a risk score of 36/100, it's in line with the sector average (37/100).
Adjacent peers: Reservoir Protocol (B-, 35/100) is ranked just safer, and crvUSD (C+, 36/100) is ranked just riskier.
See the full CDP sector leaderboard or the Bucket CDP vs crvUSD comparison.
Common Questions about Bucket CDP
Plain-English answers based on Bucket CDP's scores across Hindenrank's 8 risk dimensions. The highest-scoring (riskiest) dimension is Vitality Risk (6/10).
Has Bucket CDP ever been hacked or exploited?
Bucket CDP has had some operational issues or moderate incidents in its history. The track record dimension scored 6/15 — not catastrophic, but enough to flag. Look at the specific events and whether they were addressed by the team before drawing conclusions.
How much money is at stake in Bucket CDP?
Bucket CDP currently holds roughly $15M in user deposits. Smaller TVL means individual depositors carry a larger share of any loss event, and it can be harder to exit a position quickly during stress.
What's the worst-case scenario for Bucket CDP?
Hindenrank has identified specific collapse scenarios for Bucket CDP. The most prominent: "SUI Flash Crash Liquidation Cascade". The trigger condition is SUI price drops 40%+ in under 2 hours, overwhelming the liquidation mechanism. Reading through the full scenario list on the protocol page is the single best way to understand the actual failure modes — generic "smart contract risk" is rarely the thing that takes a protocol down.
Is Bucket CDP regulated or insured?
Bucket CDP has some regulatory exposure (5/10), typical of mid-sized DeFi protocols. There is no specific enforcement action on record, but the structure includes elements that regulators have flagged in similar protocols. No DeFi protocol carries FDIC-style insurance — even with low regulatory risk, depositors are not protected in the way bank customers are.
What are the biggest red flags for Bucket CDP?
Hindenrank's retail-focused risk audit flagged: If the crypto market crashes sharply, the collateral backing your BUCK loan could be liquidated — in extreme scenarios, the protocol may accumulate bad debt that causes BUCK to lose its $1 peg BUCK's usefulness depends on continued support from other Sui DeFi protocols — if major platforms stop accepting BUCK, demand drops and the stablecoin could depeg Sui is a relatively new blockchain — smart contract risks and infrastructure immaturity could affect the security of your collateral deposits
Should beginners deposit into Bucket CDP?
Bucket CDP's C+ grade puts it in the elevated-risk band. This is not a beginner-friendly protocol. Anyone depositing here should treat the position as speculative and avoid concentrating significant savings in it.
How does Bucket CDP compare to safer CDP alternatives?
Bucket CDP is one protocol in Hindenrank's CDP coverage. The safest CDP protocols on the leaderboard tend to share three traits: a long incident-free track record, conservative mechanism design, and high-quality public documentation. Compare Bucket CDP against the full CDP ranking before committing capital.
For the full 8-dimension score breakdown, the radar chart, and dependency graph, see the Bucket CDP risk report.
Read the Full Bucket CDP Risk Report
This protocol has 2 collapse scenarios. 2 high-severity interaction risks identified. See the full mechanism classification, interaction matrix, and deep-dive recommendations.
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