BUKS // protocol

v0 — Hyperliquid EVM

A stablecoin that caps borrow rates
across the venues you actually use.

BUKS is a multi-collateral, dollar-pegged stablecoin whose supply is actively deployed into external lending markets to hold borrow rates against approved collateral below a target ceiling. Same primitive as Sky's Direct Deposit Module — unbundled from any single issuer or chain.

How it works →Get in touch

The problem

Borrow rates spike. Capital flees. Markets break.

On-chain credit markets are reactive. When demand outpaces supply, utilization climbs, rates rip, and borrowers either pay or unwind — often at the worst possible moment. Issuer-bundled supply management (D3M-style) works, but locks the mechanism inside a single stablecoin and a single governance process.

The fix

Generalize D3M. Cap rates everywhere.

BUKS deploys per-market modules into Morpho, Euler, Aave, and any ERC-4626 lending venue. When observed rates exceed the cap, the module mints BUKS into the host. When rates fall, it burns. Reserves back user-deposited supply 1:1; market-deployed BUKS is collateralized at the host by borrowers themselves.

Mechanism

Two flows. One invariant.

FLOW 1 — MINT / REDEEM

Reserve-backed supply

Users deposit vanilla stablecoins (USDC at launch, USDT and USDS soon) and receive BUKS 1:1. They can redeem at any time against the reserve. Reserves earn carry from interest-bearing instruments (BUIDL, sUSDS, sUSDe) managed by the operator multisig.

FLOW 2 — MARKET DEPLOYMENT

Rate-capped expansion

Per-market MarketModule contracts hold the only authority to mint BUKS directly into a host venue. When the observed borrow rate exceeds the cap, the operator supplies. When it falls, BUKS withdraws and burns. Hard exposure caps are immutable per module.

SOLVENCY INVARIANT

BUKS minted into a host market via a MarketModule is not freely circulating until a borrower draws it — at which point it's collateralized by the borrower's deposit. The reserve only backs BUKS that was minted via MintRouter. The contracts enforce: redeemableSupply + Σ deployedSupply ≤ totalSupply at all times.

Distribution

How BUKS reaches every venue.

One reserve. One token. Many host markets. Each venue gets its own MarketModule with its own immutable exposure cap, rate target, and operator-gated supply path.

BUKS supply distribution across host markets — Morpho, Euler, Aave, future venues

Rate response

The loop, per market.

Each MarketModule watches one host venue. The operator only acts on the edges of the rate cap — mint when above, burn when below.

BUKS rate-response feedback loop — observe rate, compare to cap, supply or withdraw

Architecture

v0 surface

BUKS.sol

ERC-20 + permit + role-gated mint, open burn.

MintRouter.sol

Sole user-facing mint/redeem. Tracks the redeemable-supply counter and enforces hourly + daily rate limits.

MarketModule.sol

Abstract base. One module per host venue. Immutable exposure cap; multisig-gated supply/withdraw.

MorphoMarketModule.sol

Concrete impl against MetaMorpho ERC-4626 vaults. Euler and Aave to follow.

HYFI.sol

Governance token with ERC-20 votes. 100M cap. No governance contract live in v0.

LockedLP.sol

Strategic-capital vault. Time-linear vesting plus performance milestones tied to deployed supply.

Trust model in v0: 3-of-5 operator Safe holds both admin and executor roles, plus the reserve assets. No upgradable proxies. No global pause beyond role-gated mint controls. Bugs require migration.

Roadmap

From mainnet to autonomous

  1. v0
    Core contracts + Morpho on Hyperliquid
    BUKS, MintRouter, MorphoMarketModule, HYFI, LockedLP. Safe-managed reserve. Manual operator actions. Two-firm audit + public testnet bounty before mainnet.
  2. v0.1
    Reserve vault + multi-market
    On-chain reserve accounting and yield routing. Euler and Aave modules. USDT + USDS asset support.
  3. v0.2
    HYFI governance + fees
    Timelocked governance over module config, rate caps, exposure ceilings. Fee distribution to HYFI holders.
  4. v0.3
    Backstop mechanism
    Maker-style flop auction as the recapitalization fallback in extreme tail events.
  5. v1
    Risk-policy agent in the loop
    Off-chain agent monitors host markets, drafts supply/withdraw Safe transactions, signs as one of N — threshold stays human-in-the-loop.

Contact

Building. Hiring. Funding.

If you build Solidity, run a lending venue, or want to back a generalized D3M, we want to talk. Spec available on request.

hello@buks.xyz