Bucket protocol builds an aggregation layer on top of existing stablecoins across Solana to create a canonical mint for a USD-pegged token on Solana. Bucket offers a unifying stablecoin interface to trading protocols and additional liquidity to stableswap protocols, whereas consumers benefit from a diversified stablecoin index with an insurance fund and automated yield that simplifies participation in DeFi into a one-step process.
You can test the on-chain program’s instructions via our testing suite. After installing the repository (i.e. https://github.com/bucket-dao/bucket-program) locally, you can install all dependencies via the yarn setup command. Anytime after that, you can run the tests again via the anchor test command. There are more explicit testing instructions in the repository’s README.
You can also test the program’s functionality via our website (https://bucketdao.com): Anyone can request airdropped token mints compatible with the bucket and then use those to interact with our devnet program.
Why we built the project
Today’s experience with stablecoins is worse than it should be. Functionally similar assets fragment liquidity while also causing unnecessary friction and confusion.
More concentrated liquidity for functionally isomorphic assets (specifically long-tail) will improve the DeFi experience for both end users and protocols. Further, we believe less fragmentation will be a key variable to enabling Solana native DeFi innovation.
Stablecoins are an integral part of crypto. As Multicoin previously stated, “stablecoins are one of the highest convexity opportunities in crypto. TAM is simply all the money in the world: ~$90T. ” Even at a total market cap of $181.64B (source: The Block), the crypto ecosystem hasn’t even come close to that $90T number. In order to work toward that number, we believe it is important to both innovate with respect to stablecoin models and continually aggregate long tail liquidity.
We are long-term bullish on the Solana ecosystem, so we started here. However, we believe the concept of a unified stablecoin can be extended across the web3 ecosystem.
We wrote a v0 litepaper: https://docs.google.com/document/d/1_GOjncQYXdtBtDilnhC1_wZllG9nEKJgOS7xX4IV2H4