USDB, issued by the Bucket Protocol smart contracts under the governance of BUT and deBUT tokenholders, is a decentralized, over-collateralized crypto-backed stablecoin that tracks a soft peg to one U.S. dollar (USD) on the Sui blockchain [S1][S2].

Holders receive a token tracking 1 USD, minted either against volatile crypto collateral through isolated Collateralized Debt Positions or 1:1 against supported stablecoins, USD Coin (USDC) and suiUSDT, via the Peg Stability Module (PSM) [S1][S3]. USDB pays no yield by itself; depositing it into the sUSDB savings pool accrues a Base Savings Rate through a rising exchange rate plus claimable Sui rewards [S4]. PSM conversion fees apply: USDC 0%, suiUSDT 0.05% inbound, and 0.30% outbound [S3].

No incorporated legal issuer is named; the interface is provided by the Bucket Protocol Team and is deemed based solely in the Republic of Seychelles under Seychelles governing law, with disputes routed to binding arbitration [S5]. The holder's claim is economic and algorithmic via PSM conversion and market arbitrage rather than a hard issuer redemption right [S3]. The Terms prohibit Restricted Persons, including residents of the United States, Taiwan, the United Kingdom, and comprehensively sanctioned jurisdictions [S5]. Collateral is locked onchain in per-asset isolated buckets enforced by Minimum Collateral Ratios and automated liquidation; no offchain custodian exists [S6][S7].

USDB is a Sui-native coin issued only on the Sui blockchain [S6][S1]. Minting opens a CDP and borrows against collateral up to value divided by the Minimum Collateral Ratio, or swaps stablecoins 1:1 through the PSM; redemption repays debt to withdraw collateral or burns USDB for USDC or suiUSDT minus 0.30% [S7][S3]. Settlement is onchain and effectively instant [S6].

<Sources
  retrievedAt="2026-06-22"
  items={[
    { id: "S1", url: "https://docs.bucketprotocol.io/introduction/what-is-usdb" },
    { id: "S2", url: "https://docs.bucketprotocol.io/llms.txt" },
    { id: "S3", url: "https://docs.bucketprotocol.io/mechanism/usdb-peg" },
    { id: "S4", url: "https://docs.bucketprotocol.io/llms-full.txt" },
    { id: "S5", url: "https://docs.bucketprotocol.io/resources/terms-of-service" },
    { id: "S6", url: "https://docs.bucketprotocol.io/introduction/what-is-bucket-protocol" },
    { id: "S7", url: "https://docs.bucketprotocol.io/mechanism/how-cdp-work" },
  ]}
/>


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Bucket Protocol

Bucket USD (USDB) is a U.S. dollar stablecoin issued by Bucket Protocol.

Retail investors, professional investors, accredited investors, qualified investors, qualified purchasers, and institutions can mint and redeem directly with Bucket Protocol in USDC and suiUSDT.

USDB has been issued on Sui as a Sui coin token since August 2025.

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