Overview
Sanctum protocol specialises in the domain of liquid staked tokens (LSTs) on the Solana blockchain. It streamlines the process of generating, exchanging, and overseeing these tokens. Among its standout offerings is the "Infinity" protocol, engineered to maximise staking returns and liquidity.
Additionally, Validator LSTs are introduced to boost validator efficiency via tokenization. To bolster liquidity and facilitate efficient staking operations, Sanctum introduces a Reserve Pool and a Router. The platform accommodates a variety of LSTs, establishing a broad and cohesive ecosystem for staking alternatives.
Key Features
- Infinity: used to deposit SOL or LSTs into Sanctum to receive yield-bearing tokens.
- LSTs: different liquid staking tokens for SOL.
- Staking accounts: a stake account is created when a wallet stakes natively to a validator. This stake account is the "stake receipt" proving that their funds are staked to a specific validator.
- DEX: a decentralised secondary market for trading between different LSTs and SOL.
Tokenomics
The $CLOUD token is a governance token of the Sanctum protocol. Prospective partners will need to stake $CLOUD to qualify for the Sanctum Verified Partner program, and $CLOUD holders will vote on which partners make it in.
- Launch Liquidity: 20% of the total supply will be unlocked at launch. 10% will be given in the initial airdrop and 10% will be used to seed liquidity in the LFG launch pool. The proceeds and any unsold tokens will go to the Strategic Reserve.
- Community Reserve: 30% of the total supply will be governed by the community.
- Strategic Reserve: 11% of the supply has been allocated to the Strategic Reserve, which will be used by the team to grow the Sanctum ecosystem. It is earmarked for future acquihires, strategic investors, LST partners, grant recipients, loans to market makers, on-chain liquidity, etc.
- *Team: 25% of the supply is allocated to the team.
- *Investors: 13% of the supply has been sold to investors.
- Jupiter LFG: 1% will be allocated to be sold on Jupiter's LFG.
*The team and investors tokens are vested for the same duration. A third of the tokens unlocks one year after the TGE and the remaining 67% are unlocked in equal portions on a monthly basis for years 1-3 after the TGE.
Conclusion
Sanctum has the potential to become the pivotal player in the liquid staking sector on the Solana blockchain. Its user-centric approach combined with innovative technology such as the Infinity protocol and Validator LSTs address important issues and complexities associated with staking and liquidity management.
