Is Bucket Protocol V2 Safe?
Risk Grade: B- (34/100)
Bucket Protocol V2 is rated as moderate risk — some novel mechanisms, generally well-understood.
Moderate risk — well-designed CDP protocol with multiple peg stability mechanisms, but oracle dependency and Sui immaturity create meaningful risk during market stress.
Bucket Protocol V2 is the first CDP protocol on Sui, allowing users to deposit SUI, BTC, or ETH as collateral to borrow BUCK stablecoin at zero interest. With $12M TVL, it features a stability pool (Tank), peg stability module (PSM), and savings pool. It uses Liquity-inspired mechanics adapted for Sui.
TVL
$10M
Mechanisms
7
Interactions
5
Value Grade
D+
Key Risks for Bucket Protocol V2 Users
If SUI price drops sharply, your collateral could be liquidated
BUCK depends on multiple stability mechanisms that could fail during extreme conditions
Sui ecosystem is young, limiting where you can use BUCK
Top Risk Factors
- •BUCK peg stability depends on multiple modules (PSM, CDP, Tank, redeem) — failure of any could break the peg
- •Oracle dependency for SUI, BTC, ETH creates liquidation risk during rapid price drops
- •Zero-interest borrowing may create adverse selection and bad debt accumulation
- •Sui ecosystem still young with limited DeFi composability for BUCK
Risk Score Breakdown
Bucket Protocol V2's highest risk area is Oracle Surface (5/10). Here's how each dimension contributes to the overall 34/100 score:
Read the Full Bucket Protocol V2 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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