Sanctum (CLOUD) Brings A New Dimension To Liquid Staking On Solana

What is Sanctum (CLOUD)?

Sanctum (CLOUD), an innovative platform built on Solana, is designed to transform the landscape of liquid staking by enabling users to stake SOL natively or with liquid staking tokens (LSTs). The team aims to tap into a unified liquidity layer that supports seamless and efficient swaps to make sure that all LSTs are fairly priced and instantly tradable and that liquid staking can become more accessible and capital-efficient than ever before.

Who Created Sanctum (CLOUD)?

Sanctum was founded by a trio of seasoned experts in the crypto and blockchain space: Jesse Cho - a software lead with a background in embedded systems and Rust development, FP Lee - who played a crucial role in the design of the Solana Foundation's SPL stake pool programme, and Jaye Tan - a legal expert and core contributor to Sanctum Labs.

How Sanctum (CLOUD) Works

Infinity Pool

The Infinity Pool is a multi-LST liquidity pool that facilitates swaps between all whitelisted LSTs. Unlike traditional liquidity pools that typically support only two assets, Infinity can handle millions of different LSTs. Each LST can be converted into a stake account, allowing for fair pricing based on the SOL contained within each stake account. Users can deposit any LST into the Infinity Pool and receive the INF token, which accrues both staking rewards and trading fees. The pool maintains its target allocation by dynamically adjusting swap fees for each LST to maximise trading returns while ensuring liquidity.

Dynamic Fee Structure

Sanctum's dynamic fee structure aligns economic incentives with the maintenance of liquidity balance. Fees are adjusted based on the pool's current asset allocation and thus encouraging trades that rebalance the pool. This optimises liquidity distribution across all supported LSTs as well as enhancing the platform's efficiency and stability. If a particular LST is in surplus, its swap fees will be lowered, while fees for deficit LSTs will be increased instead to incentivise users to trade in ways that restore balance.

Manual Rebalance and Yield Optimisation

Beyond dynamic fees, the pool manager can manually rebalance the pool by unstaking from one LST and staking to another. This manual intervention ensures that the pool's allocation aligns with its yield optimisation goals. LSTs depositors of the Infinity Pool benefit from a combination of staking yields from the LST basket and trading fees, with the pool manager strategically targeting allocations that maximise returns. This proactive management approach allows the pool to adapt to market conditions and maintain optimal performance.

Sanctum Reserve

The Sanctum Reserve provides deep liquidity for all liquid staking tokens on Solana. It accepts staked SOL and provides SOL in return for the purpose of instant unstaking. This reserve pool ensures that any LST, regardless of size, can be used across DeFi platforms without liquidity concerns. It acts as a critical backstop for emergency unstakes and supports the entire liquid staking ecosystem on Solana. By maintaining a substantial reserve of SOL, Sanctum can guarantee liquidity even during periods of high demand.

The CLOUD Token

The CLOUD token is the governance token for Sanctum and has multiple utilities within the ecosystem. CLOUD holders participate in decision-making processes that shape the future of Sanctum, including voting on prospective partners and strategic directions. Prospective partners need to stake CLOUD to qualify for the Sanctum Verified Partner programme. Additionally, CLOUD will be used in various new products and services that Sanctum plans to introduce in order to drive the platform's growth and community involvement.

The tokenomics of CLOUD is designed to support the platform's long-term growth. 20% of the total supply is split evenly between an initial airdrop and seeding liquidity in the launch pool for launch liquidity. 30% is reserved for the community and managed strategically to promote growth through future airdrops, staking rewards, and grants. 11% is set aside in the strategic reserve for strategic investments and partnerships. 25% is allocated to the team as motivators for the founders and core contributors to stay committed to Sanctum's mission and vision. Early investors receive 13% as recognition of their initial support and confidence in the project. Lastly, 1% is allocated to Jupiter's launchpad for broad distribution and engagement.

CLOUD Goes Live on Bitget

Sanctum is redefining liquid staking on Solana by offering unparalleled liquidity, efficiency, and governance. Stake, trade, and earn with Sanctum to shape the future of DeFi together!

How to Trade CLOUD on Bitget

Listing time: July 18, 2024

Step 1: Go to CLOUD/USDT page

Step 2: Enter the amount and the type of order, then click Buy/Sell

Trade CLOUD on Bitget now!

Disclaimer: The opinions expressed in this article are for informational purposes only. This article does not constitute an endorsement of any of the products and services discussed or investment, financial, or trading advice. Qualified professionals should be consulted prior to making financial decisions.