The Sui ecosystem is brimming with opportunities, especially with many projects yet to issue their native tokens. This presents a significant potential for airdrop campaigns. Among these, Bucket Protocol stands out as a leading project in the Collateralized Debt Position (CDP) sector with strong airdrop expectations. Its recent performance has been impressive, generating substantial platform profits that have enabled an astonishing ~90% yield for stakers of its stablecoin, $BUCK.
This guide will walk you through exploring this high-yield stablecoin opportunity while simultaneously positioning yourself to qualify for airdrops from at least three major projects within the Sui network.
Why This Strategy is Compelling
This single, integrated strategy involves interacting with several core protocols, effectively allowing you to farm airdrop eligibility from multiple sources simultaneously. The primary airdrop opportunities you can expect to farm include:
- Aftermath Finance: A leading decentralized exchange (DEX) and liquidity hub on Sui.
- Bucket Protocol: The core CDP protocol itself, which has not yet launched a token.
- Supra Labs: A decentralized oracle network providing critical price feeds for Bucket Protocol.
Both Aftermath Finance and Bucket Protocol have strong fundamental metrics and significant airdrop expectations, though neither has publicly released detailed funding rounds. Supra Labs, Bucket's chosen oracle provider, secured a $24 million funding round last year, adding to the credibility of the ecosystem.
An Overview of Bucket Protocol
Bucket Protocol is an over-collateralized stablecoin protocol, similar to MakerDAO, operating on the Sui blockchain. It issues the $BUCK stablecoin, which is backed by more than $1 in collateral for each token minted. The platform has already accumulated approximately $20 million in Total Value Locked (TVL), ranking it 12th within the entire Sui ecosystem. The $BUCK stablecoin has also seen widespread adoption, integrating with numerous other DeFi projects like Aftermath Finance.
Given that Bucket Protocol has not yet launched a token or initiated a formal points program for an airdrop, its organic growth to a $20 million TVL is a strong indicator of its potential. As the leading CDP project on Sui, its future growth prospects are considerable. The launch of a future token or incentive program will likely drive its TVL even higher. Becoming an early user now is a strategic move for potential future rewards.
Understanding the High Yield Mechanism
Recently, Bucket Protocol has performed exceptionally well. A significant portion of the platform's revenue is directed back to $BUCK stakers to boost the adoption and market share of its stablecoin. This has resulted in a remarkably high yield of approximately 73% APR for staking $BUCK. It's crucial to note that this staking mechanism carries no lock-up period and no direct liquidation risk.
Despite the staking vault already holding over ten million dollars, it continues to sustain this high Annual Percentage Rate (APR). This attractive yield is expected to remain for the foreseeable future, though it will likely adjust as more capital enters the ecosystem.
Assessing the Potential Risks
While stablecoin yield farming is generally considered lower risk, it is not without potential pitfalls. The main risks to consider are:
- Smart Contract Risk: The possibility of a vulnerability or exploit in the protocol's code.
- Stablecoin De-pegging Risk: The chance that $BUCK loses its 1:1 peg to the US dollar.
To mitigate the first risk, Bucket Protocol's smart contracts have been audited by two reputable security firms, Osec.io and MoveBit. Users concerned about contract security are encouraged to review the publicly available audit reports.
Regarding the stability of $BUCK, the protocol employs a robust redemption system. If $BUCK were to de-peg, arbitrageurs would be incentivized to buy the discounted stablecoin and redeem it for $1 worth of collateral (e.g., $SUI) directly through the protocol's website, which would naturally push the price back to its peg.
The most extreme risk is a "black swan" event—a sudden, violent crash in the cryptocurrency market. If the value of SUI (the primary collateral in Bucket's vaults) plummeted too rapidly for the liquidation mechanisms to keep up, the protocol could potentially become undercollateralized, leading to bad debt and a possible de-peg of $BUCK. However, the probability of this scenario is considered low due to the over-collateralized nature of the system.
How to Participate: Step-by-Step Guide
Basic Strategy (For Users Holding USDT or USDC)
This strategy is straightforward and ideal for users who prefer to use existing stablecoins.
- Set Up a Sui Wallet: First, you need a Sui-compatible wallet. Popular options include Sui Wallet, Ethos, or others available in your browser's extension store.
- Fund Your Wallet: Transfer $SUI tokens into your new wallet. You will need a small amount of SUI to pay for transaction (gas) fees.
- **Acquire $BUCK:** Navigate to the [Aftermath Finance](https://www.okx.com/join/BLOCKSTAR) exchange aggregator. Swap your preferred stablecoin or $SUI for $BUCK. Aggregators like Aftermath find the best exchange rates across multiple DEXs.
- Stake for Yield: Go to the official Bucket Protocol website. Navigate to the sBUCK staking section. Stake your $BUCK tokens to immediately begin earning yield. You will see your rewards, paid in $SUI tokens, accumulating in real-time. You can withdraw your staked $BUCK and claimed rewards at any time with no withdrawal fees.
Advanced Strategy (For Users Holding SUI and Seeking Higher Exposure)
This strategy is more complex but allows you to earn yield without selling your SUI, maintaining your exposure to its potential price appreciation—a concept often called "productive ownership."
The Core Idea: Instead of selling SUI, you convert it into a liquid staking derivative like $haSUI, $afSUI, or $vSUI. You then use this derivative as collateral to borrow $BUCK against it. Finally, you stake the borrowed $BUCK to earn the high yield. This allows you to earn yield on both your staked SUI derivative and the borrowed $BUCK, all without selling your original SUI position.
Convert SUI to a Liquid Staking Token: On the Aftermath Finance platform, swap your $SUI for a liquid staking token such as $haSUI.
- Pro Tip: Ensure you are swapping for the correct token. You can paste the official contract address for haSUI to avoid any mistakes.
- Use as Collateral: On Bucket Protocol, deposit your $haSUI (or other derivative) as collateral into a vault.
- **Borrow $BUCK:** Against your deposited collateral, borrow the $BUCK stablecoin. It is advisable to maintain a healthy collateral ratio to avoid liquidation.
- **Stake the Borrowed $BUCK:** Take the $BUCK you just borrowed and stake it in the sBUCK vault, as described in the basic strategy.
You are now earning staking rewards on your liquid staked SUI and the high yield on the staked $BUCK you borrowed. This multi-layered approach maximizes your earning potential from a single asset.
👉 Explore more strategies for advanced yield farming
Frequently Asked Questions
What is an airdrop in cryptocurrency?
An airdrop is a marketing strategy employed by blockchain projects where they distribute free tokens or coins to the wallets of active users. This is often done to reward early adopters, decentralize token ownership, and drive community engagement.
Is staking $BUCK completely risk-free?
No investment is entirely risk-free. While staking $BUCK doesn't carry liquidation risk like providing collateral does, it is still subject to smart contract risk and the extremely unlikely event of a stablecoin de-peg. Always do your own research and never invest more than you can afford to lose.
What's the difference between the basic and advanced strategies?
The basic strategy involves simply buying and staking $BUCK, ideal for stablecoin holders. The advanced strategy uses leveraged yield farming by borrowing against staked SUI, allowing you to earn multiple yields without selling your underlying SUI assets. It is more complex and carries additional risks like potential liquidation of your collateral.
How are the staking rewards paid out?
Rewards for staking $BUCK in the sBUCK vault are paid out in $SUI tokens. These rewards accumulate in real-time and can be claimed at any moment without any lock-up period or penalty.
Can I participate if I'm not technical?
The basic strategy is designed to be user-friendly and accessible to most users familiar with basic crypto transactions. The advanced strategy requires a better understanding of DeFi concepts like collateralization and borrowing. If you are new, it's best to start with the basic approach.
Why interact with multiple protocols for airdrops?
Projects often use on-chain data to determine airdrop eligibility. By interacting with reputable protocols like Bucket, Aftermath, and using Supra oracles indirectly, you increase your on-chain footprint and the likelihood of being included in multiple airdrop snapshots.