Lots of damaged blades cut OK (11)

'damaged blades cut ok' is the definition.
I don't know anything about this answer so I can't judge whether it can be defined by this definition.

'lots' is the wordplay.
I cannot quite see how this works, but
'lots' could be 'loads' (synonyms) and 'loads' is found within the answer.
The remaining letters 'bucket' is a valid word which might be clued in a way I don't understand.
This may be the basis of clue (or it may be nonsense).

'of' is the link.

Can you help me to learn more?