Sanctum: Revolutionizing Liquid Staking on Solana

Sanctum is at the forefront of innovation in the Solana blockchain ecosystem, offering a solution that simplifies liquid staking while enhancing liquidity and rewards. This article explores the core aspects of Sanctum, how it operates, and the unique benefits it brings to the staking community.

What is Sanctum?

Sanctum is a pioneering platform dedicated to optimizing the staking experience on Solana. It converts traditional staked assets into liquid staking tokens (LSTs), allowing users to maintain liquidity while still earning staking rewards. This dual functionality addresses the limitations of traditional staking, where assets are locked and inaccessible. By integrating with the Solana network, Sanctum ensures that users can leverage their staked assets across various DeFi applications without sacrificing liquidity.

Sanctum aims to create a unified liquidity layer for all Solana-based LSTs, simplifying participation in liquid staking. Users can issue and trade LSTs seamlessly, thanks to the platform's robust infrastructure. This system not only enhances the liquidity of staked assets but also promotes greater decentralization within the Solana network by encouraging wider participation in staking activities.

How Sanctum Works

Sanctum addresses the issue of liquidity fragmentation by aggregating various staking LST pools into a single, cohesive system. Users can deposit either LSTs or SOL into a shared liquidity pool and receive INF tokens. These tokens represent the user's share of the pooled assets, which earn rewards from both staking and trading fees. This mechanism ensures consistent returns and provides users with the flexibility to manage their staked assets more dynamically.

• Deposit: Users deposit LSTs or SOL into Sanctum’s shared liquidity pool.
• INF Tokens: In return, users receive INF tokens representing their stake.
• Rewards: These tokens accrue rewards from staking and trading fees, ensuring users benefit from multiple revenue streams.
• Liquidity: INF tokens can be traded or redeemed, providing instant liquidity.

Additionally, Sanctum facilitates the trading of LSTs, enabling users to easily swap between different tokens and SOL. This trading capability, combined with the platform’s user-friendly interface, makes managing staked assets straightforward and efficient. By lowering the barriers to entry and providing a seamless staking experience, Sanctum is poised to become a cornerstone of the Solana ecosystem.

Benefits of Using Sanctum

Sanctum offers numerous advantages, making it a compelling choice for stakers on Solana:

• Instant Liquidity: Users can convert their staked SOL into liquid tokens, allowing immediate access to funds.
• Unified Rewards: Instead of managing multiple staking accounts, users earn rewards from a single pool.
• Enhanced Flexibility: The ability to trade LSTs provides users with the agility to respond to market changes promptly.
• Efficient Trading: Sanctum’s platform supports easy swapping between LSTs and SOL, optimizing trading efficiency.

Sanctum Wonderland

Sanctum Wonderland is an engaging feature designed to enhance user participation through gamification. One of its unique aspects is the inclusion of digital pets, which add an interactive and fun element to the platform.

Key Features of Sanctum Wonderland

1. Digital Pets: Users can adopt and nurture digital pets within the platform. These pets grow and evolve based on user activities and engagement, providing a personalized experience.
2. Experience Points (EXP): Earned through tasks and challenges, EXP helps users progress and unlock rewards within Sanctum Wonderland.
3. Airdrop Potential: By accumulating EXP and reaching specific milestones, users may qualify for potential airdrops, incentivizing continuous participation.
4. Community Engagement: Active involvement in discussions, feedback, and promotional efforts are rewarded, fostering a strong community.
5. Unlockable Rewards: Progressing through levels unlocks rewards like exclusive access to features, higher staking rewards, or unique digital assets.

Sanctum Wonderland combines the excitement of digital pets with practical staking and liquidity benefits, making it an appealing feature for users.

Team and Investors

Sanctum is led by FP Lee, the founder of the platform, who is also known by his X handle, @soleconomist. FP Lee is a well-known figure in the blockchain community, with a strong background in decentralized finance and blockchain technology. He is dedicated to driving innovation in the staking ecosystem and ensuring the success of Sanctum.

In December 2021, Sanctum successfully raised $5.75 million in a seed funding round. This funding round was led by notable investors including DragonFly Capital and Sequoia Capital. Additional investors who contributed to this round include CMS Holdings, Solana Ventures, DeFiance Capital, Jump Capital, Genblock Capital, and mgmr. This diverse group of investors reflects strong confidence in Sanctum’s vision and potential within the Solana ecosystem.

Sanctum Tokenomics

The native token of Sanctum, called CLOUD, plays a crucial role in the platform's ecosystem. With a total supply of 1 billion tokens, CLOUD is designed to serve various purposes, enhancing both governance and utility within the Sanctum network.

Distribution Breakdown

• Community (30%): A significant portion of CLOUD tokens is allocated to the community. These tokens are used for future airdrops, active staking rewards, grants, and other community-driven initiatives.
• Team (25%): Allocated to the founders and core contributors who have been building Sanctum for more than three years. This allocation is vested over a three-year period with a one-year cliff.
• Investors (13%): These tokens were sold during the initial funding rounds, with a similar vesting schedule to the team's allocation.
• Reserve (13%): Set aside for future acquisitions, strategic partnerships, grants, loans to market makers, and on-chain liquidity.
• Launch Airdrop (10%): Allocated to the initial airdrop to incentivize early participation and engagement within the community.
• LFG Launchpool (8%): Used to seed liquidity in Jupiter's LFG launch pool.

Utilities of CLOUD

• Governance: CLOUD token holders have governance rights, allowing them to vote on important decisions regarding the platform’s development and direction.
• Verified Partner Program: Prospective partners must stake CLOUD tokens to qualify for the Sanctum Verified Partner program. CLOUD holders will vote on which partners are accepted.
• Wonderland: CLOUD will play a pivotal role in Sanctum Wonderland, particularly in Season 2, enhancing user engagement and reward mechanisms​.

Conclusion

Sanctum is set to transform the Solana staking ecosystem with its innovative approach to liquid staking, providing users with instant liquidity, unified rewards, and enhanced trading flexibility. By integrating gamified elements through Sanctum Wonderland, the platform also ensures a more engaging and rewarding experience for its users. As it continues to develop, Sanctum is poised to become a key player in the world of decentralized finance on Solana.