Borrow against what you already own.

1. Overview

Buckt is a single-chain, overcollateralized CDP protocol deployed natively on Robinhood Chain, the Arbitrum Orbit L2 purpose-built for tokenized real-world assets. The mechanism is deliberately simple: users deposit approved collateral into a vault and mint aUSD, a USD-denominated stablecoin backed at all times by more value than it represents.

What sets Buckt apart is not the machinery but the collateral it accepts. Alongside a crypto major and a stablecoin, Buckt is a CDP protocol built to accept Stock Tokens and ETFs as collateral, settled natively on the chain where those shares already live. A holder of tokenized shares can unlock liquidity from a position without selling the underlying shares, without bridging to another network, and without giving up a single basis point of upside.

The solvency model is equally direct. Every vault is independently collateralized, independently priced, and independently liquidated. There is no shared risk pool to socialize losses by default and no reliance on external subsidies. Solvency rests entirely on real, overcollateralized positions, which means the system stands on its own economics from day one and scales cleanly as demand grows.

Buckt is assembled from the mechanics that have proven themselves across a decade of on-chain lending: collateralized borrowing, tiered risk parameters, a Stability Pool that makes liquidations orderly, and vote-escrow governance. Nothing is included for novelty. Every component earns its place by making borrowing safer, cheaper, or more capital-efficient. You can model every mechanism described here, live, in the borrow terminal.

2. Vaults and Collateral

A vault is a single-owner position holding one collateral asset against one debt balance. This one-asset, one-debt discipline keeps every position legible: there is never ambiguity about what backs a given unit of debt. Positions are tracked as clean ERC-20 debt accounting, making them transparent, gas-efficient, and composable with the rest of the on-chain ecosystem.

2.1 Supported collateral

The current deployment runs 24 live markets across three classes: a crypto major, a stablecoin, plus Stock Tokens and ETFs. Each market has its own vault, oracle, and risk parameters. The LTV and liquidation threshold below are the live, on-chain values.

Tier 1 (55% LTV): AAPL, MSFT, NVDA, GOOGL, AMZN, META, TSLA, SPY, QQQ, SGOV, SLV. Tier 2 (40% LTV): AMD, INTC, MU, PLTR, COIN, ORCL, BABA, CRCL, CRWV, SNDK, SPCX. Parameters are set, and may only be adjusted, by governance as described in Section 6.

2.2 Minting aUSD

A vault owner may mint aUSD up to the LTV limit of their collateral. Debt accrues continuously against the stability fee described in Section 5, and repaying debt plus accrued fees releases a proportional share of collateral.

Debt is minted and burned strictly 1:1 against vault debt. Repayment is always available: return the aUSD plus accrued fees and the collateral is yours again, in whole or in part.

2.3 Risk tiering

Collateral parameters are not chosen arbitrarily. They are derived from a published risk-classification methodology, applied consistently across every asset the protocol accepts.

Crypto and stablecoin collateral is scored on on-chain liquidity depth, historical volatility, and oracle quality. Stock Token collateral is scored on 20-day realized volatility, average daily notional volume on Robinhood Chain's trading venue, free float, and index membership.

The principle is conservative by construction: lower-liquidity, higher-volatility assets receive a lower LTV and a wider gap between LTV and liquidation threshold, giving liquidators more room to act before a position becomes undercollateralized. This is why Tier 2 Stock Tokens and newly onboarded assets always begin life with the most conservative parameters available. Parameters are loosened only by governance vote, and only after a live track record justifies it.

3. aUSD and the Peg

aUSD is the protocol's single debt token, minted and burned only by Vault Managers. Every aUSD in circulation is backed by more than a dollar of collateral: the peg rests on overcollateralization. Each vault must stay above its liquidation threshold, and the Stability Pool liquidates any that do not, so the collateral behind aUSD always exceeds the aUSD supply.

A market redemption path, burning aUSD for collateral at par, is a planned addition that would give the peg a direct arbitrage floor. It is not live yet. Until then the peg is held by the solvency invariant below and by liquidations clearing undercollateralized debt.

4. Liquidations and the Stability Pool

When a vault's health factor drops below 1, its debt and collateral become eligible for liquidation. Buckt uses one unified liquidation path for every collateral type. There are no special cases and no bespoke machinery per asset, which keeps the system simple, predictable, and straightforward to audit.

4.1 The Stability Pool

The Stability Pool is the protocol's first line of defense and its liquidation engine. Users deposit aUSD into the pool. When a vault is liquidated, the pool burns the equivalent aUSD debt and receives the vault's collateral at a discount to its oracle price. Depositors are exposed to whatever collateral gets liquidated, in proportion to their share of the pool, and the liquidation discount is their compensation for standing ready to absorb that risk.

A liquidation flows through the system in four steps:

If the Stability Pool is ever too thin to cover a liquidation, that position cannot be liquidated until the pool is funded, which is why the pool is kept capitalized and per-market debt ceilings are sized to what it can absorb. A Liquity-style redistribution fallback and a treasury-funded liquidation path are planned to harden this further.

4.2 Market-hours handling

Stock Token collateral introduces a constraint that pure-crypto protocols never face: the underlying market closes. Stock Token collateral only trades, and only prices freshly, during the hours the underlying exchange is open. Outside those hours the oracle reports the last confirmed close.

The intended design treats this as a first-class code path, not an edge case: widen the effective liquidation buffer for Stock Token vaults heading into a market close, and halt new Stock Token borrowing during the pre-close window, so no position is minted against a price about to go stale over a weekend. This market-hours handling is a planned mechanism, not yet active.

5. Fees and Treasury

Buckt earns from two real, on-chain fees: the stability fee and a one-time origination fee. Both are paid in aUSD rather than emissions, giving the protocol a durable income base that grows in direct proportion to usage.

The liquidation discount (Section 4) is not a treasury fee: it accrues to Stability Pool depositors as their compensation for backstopping liquidations.

5.1 The Surplus Buffer

The Surplus Buffer is a governance-controlled reserve funded entirely by realized protocol revenue. Its first duty is protective: it absorbs bad debt from any shortfall event before that loss ever touches Stability Pool depositors.

Any excess above the target reserve size may be allocated by BUCKT vote, including, if governance so chooses, direct distribution of real protocol revenue to BUCKT holders. The reserve target itself is a governance parameter, reviewed as the protocol's debt footprint grows.

6. Governance ($BUCKT)

BUCKT is the protocol's fixed-supply governance token. Voting power comes from locking BUCKT into veBUCKT (vote-escrow): the longer the lock, the more voting weight, which aligns control with long-term holders. Until governance launches, the team manages the protocol parameters.

Once live, veBUCKT holders govern four domains:

BUCKT's total supply is fixed at genesis, so no holder is diluted over time. Voting weight is earned by locking into veBUCKT, which ties governance power to long-term alignment rather than short-term holdings.

7. Architecture

Buckt is deployed exclusively on Robinhood Chain and makes no assumptions about, or provisions for, other chains. The system is composed of these core components, each with a single responsibility:

8. Risks

No lending protocol is risk-free, and Buckt's documentation does not pretend otherwise. The material risks, and the direction of mitigation for each, are as follows:

9. Bridge to Robinhood Chain

Buckt runs on Robinhood Chain, so you need a little ETH there to pay gas before you can borrow. Bridging ETH from Ethereum mainnet takes about a minute through Relay: the Bridge button in the top nav opens it pre-configured (Ethereum ETH to Robinhood Chain ETH).

The block explorer for Robinhood Chain is robinhoodchain.blockscout.com, the easiest way to track your bridge transaction and balances. Its Add network button (top right) is the fastest way to add Robinhood Chain to your wallet.

10. Using the App

Everything in this document is live in the borrow terminal. The terminal models a vault in real time: supply collateral, mint aUSD, and watch your health factor, LTV, liquidation price, and stability fee move with every input.