Sanctum: Liquid Staking on Solana Reimagined

Liquid staking allows users to earn staking rewards while still participating in DeFi. However, existing liquid staking solutions have limitations that prevent widespread adoption. Many users remain reluctant to use liquid staking tokens (LSTs) due to issues like poor user experience, lack of control, limited options, and the risk of tokens de-pegging during times of low liquidity.

Sanctum aims to solve these problems by introducing a unified liquidity layer for all LSTs on Solana, making liquid staking more accessible, flexible, and user-friendly. Sanctum’s solution is designed to foster a thriving liquid staking ecosystem where all SOL is staked, and all staked SOL is liquid, allowing users to issue and invest in LSTs easily.

What is Sanctum?

Source: Sanctum website

Sanctum is a groundbreaking platform on Solana that seeks to build a thriving liquid staking ecosystem by making all staked SOL liquid. The mission is to make Liquid Staking Tokens (LSTs) accessible to everyone, allowing users to issue their own LSTs without worrying about liquidity and to invest in an infinite variety of LSTs that suit their preferences. Sanctum was developed by a group of blockchain experts who self-identify as FP, HY, 0xf812, and J.

How Does Sanctum Work?

Sanctum’s technology revolves around a unified liquidity layer supporting all Solana LSTs. This layer allows for seamless interaction between different LSTs, ensuring that users can switch between staking tokens or convert them back to SOL instantly and without hassle.

The core of Sanctum’s technology is divided into several key components:

Infinity Pool

This is the flagship product where users can deposit liquidity, including any LST or SOL, in exchange for the Infinity (INF) token. The Infinity Pool ensures that liquidity is always available, making it easy to trade or convert LSTs without worrying about liquidity shortages.

Sanctum Router

Integrated into the Jupiter protocol, the Sanctum Router is a critical piece of infrastructure that unifies liquidity across all LSTs. It allows users to convert one LST to another, even when no direct trading route exists between them. This innovation prevents liquidity fragmentation and ensures that all LSTs, regardless of their size, can access deep liquidity.

The Reserve

Formerly known as unstake.it, the Reserve is a pool of liquid SOL that services instant unstake requests for all LSTs. This emergency pool of SOL acts as a backstop for the Solana DeFi ecosystem, ensuring that LSTs can be instantly converted back to SOL, making them a reliable and flexible asset in DeFi protocols.

Validators LSTs

A Validator LST (Liquid Staking Token) is a token that represents a staked SOL. It’s like a receipt that shows users have invested their SOL with a validator to earn rewards. Unlike traditional staking, where staked SOL is locked for a period, Validator LSTs are liquid, meaning they can be bought, sold, or traded anytime.

How Do Validator LSTs Work?

• Staking: When users buy a Validator LST, SOL is staked with a validator. This means it’s used to secure the Solana network and earn rewards.
• Liquidity:Unlike traditional staking, SOL is not locked. Users can trade or sell their Validator LST for SOL whenever they want.
• Rewards: Validator LST grows in value over time as it earns staking rewards.

Use Cases of Sanctum

Launch Your Own LST

With Sanctum’s unified liquidity layer, anyone can launch their own LST without needing massive capital. This democratizes creating LSTs, allowing communities to develop tokens that align with their specific needs and values.

Invest in Diverse LSTs

Users can explore and invest in infinite LSTs, each offering unique benefits. For instance, Validator LSTs combine the advantages of native staking with the flexibility of liquid staking, offering a compelling alternative to traditional stake pools.

Enhanced User Experience

Sanctum significantly improves the user experience of staking on Solana. Users can easily stake or unstake their SOL, switch between LSTs, or trade LSTs without waiting periods, complex processes, or fragmented user interfaces.

DeFi Integration

LSTs on Sanctum can be used as collateral in DeFi protocols, unlocking new opportunities for yield generation and financial strategies within the Solana ecosystem.

How To Start Using Sanctum

Create a Profile

To begin using Sanctum, download the app from the official website or app store. Once installed, create your account using a secure email address or link it directly with your preferred crypto wallet. Then, go ahead and create your profile.

Profiles are the foundation of your identity in the Sanctum universe. As a core feature still in beta, profiles will evolve based on community feedback. They help you establish your presence and identity within the Sanctum ecosystem, and seamlessly integrate across all Sanctum products.

How to Create a Profile:

1. Visit Sanctum Profiles

2. Connect your Solana wallet to the Sanctum platform.

3. Click on the “Create new profile” button and follow the steps to prove ownership of your wallet by signing a message in your wallet extension.

4. Once successfully signed, your unique Sanctum profile will be created.

Key Features of Profiles

• Link Multiple Wallets: Manage multiple wallets under a single profile. This feature will allow you to handle all your assets in one place once Profiles are fully integrated into the Sanctum app.
• Connect Social Accounts: You can link your Twitter and Discord accounts to your Sanctum profile, helping you build and showcase your reputation within the community.
• Privacy: While in beta, Profiles and their associated wallets/socials are not publicly searchable and remain private, only viewable by you.

Linking Wallets

To provide a more streamlined experience, you can link multiple wallets to your Sanctum profile. Here’s how:

1. Visit Sanctum Profiles and log in using your existing profile by connecting with a wallet already linked to your profile.

2. Under the “Linked wallets” section, click “Link another wallet” and follow the prompts to authorize the connection.

3. Once authorized, disconnect your current wallet and reconnect using the new wallet you want to link.

4. Use the Profile ID provided to finalize linking the new wallet.

You should now see the new wallet displayed under the “Linked wallets” section of your profile.

Linking Social Accounts

To enhance your Sanctum profile and integrate your social presence:

How to Link Twitter:

1. Log in to your profile at Sanctum Profiles using any linked wallet.

2. Select “Manage Profiles” and sign the message via your wallet extension.

3. You’ll be redirected to Twitter’s OAuth page. Follow the instructions to authorize and link your Twitter account.

How to Link Discord:

1. Log in to your profile at Sanctum Profiles using any linked wallet.

2. Select “Manage Profiles” and sign the message via your wallet extension.

3. You’ll be redirected to Discord’s OAuth page. Follow the instructions to authorize and link your Discord account.

Once completed, your Twitter and Discord handles will be updated on your Sanctum profile.

Privacy Settings

• Profile Visibility: Decide whether your profile is public, private, or visible only to your connections.
• Message Requests: Manage who can send you direct messages. Choose from anyone, connections only, or no one.
• Connected Wallets: Choose to display your wallet publicly or keep it hidden.

Exploring Sanctum

After setting up your profile and linking your wallet, you can explore Sanctum’s key features:

• Join or Create Groups: Participate in or establish groups based on your interests. Sanctum groups are private, encrypted spaces where you can interact freely.
• Direct Messaging: Connect with other users via secure, encrypted messages.
• Marketplace: Buy, sell, and trade digital assets within the Sanctum marketplace. All transactions are secured through blockchain technology.

Features Of Sanctum

Infinity Pool

The Infinity Pool is a multi-LST (Liquid Staking Token) liquidity pool that enables swaps between all whitelisted LSTs within the pool, including SOL. You receive INF tokens in return when you deposit into the Infinity Pool. These INF tokens act as a receipt, representing your share of the total pool, and they begin earning yield immediately. This yield is derived from the staking returns of the LSTs in the pool and trading fees generated by the pool’s activities.

Trade

The Trade tab on Sanctum offers a streamlined platform for buying and selling Liquid Staking Tokens (LSTs) and SOL, making it easier than ever to manage your digital assets. Whether you want to exchange SOL for a different LST or swap between various LSTs, the Trade tab provides a quick and efficient solution.

How Trades are Serviced

Trades via the Trade tab are facilitated through two primary methods:

• Sanctum Router: A native solution for executing trades within the Sanctum ecosystem.
• Jupiter: An integrated service that supports efficient swaps between various assets.

Steps to Trade LSTs

1. Select Source Asset: Choose the LST, SOL, or staking account you want to trade from.

2. Enter Amount: Specify the amount of the source asset you wish to trade.

3. Select Target Asset: Choose the LST or SOL you want to receive in exchange.

4. Swap and Approve: Complete the transaction by confirming and approving the trade.

Stake Accounts

The “Stake Accounts” tab on Sanctum provides a versatile tool for managing your stake accounts. This feature lets you convert your stake accounts into Liquid Staking Tokens (LSTs) or unstake them to receive SOL directly.

The Stake Accounts tab offers two main functions:

1. Convert Stake Accounts to LSTs: If the validator has an associated LST, you can instantly transform your stake accounts into liquid staking tokens (LSTs).

2. Instant Unstake: Convert your stake accounts directly to SOL, known as Instant Unstake.

LSTs

The “LSTs” tab on Sanctum is your gateway to exploring and purchasing various Liquid Staking Tokens (LSTs). Here, you can browse all supported LSTs, check their performance, and access additional details.

The LSTs tab allows you to:

• Browse Supported LSTs: View and explore all LSTs supported by Sanctum. LSTs tagged with “Sanctum LST” are deployed with the Sanctum stake pool program. Some of the LSTs supported by Sanctum are mangoSOL (Mango), uptSOL (UpRock), lotusSOL (LOTUS), uSOL (Urban Node), pineSOL (Pine Analytics), gS (Guardian Validator), and eonSOL (EONpool).
• Check Performance and Details: Review each LST’s performance, access their social channels, and understand their unique features.

Sanctum Wonderland

Sanctum Wonderland is a mystical floating colony where users, known as “Wonderers,” can embark on adventures with their Pets—digital companions linked to Liquid Staking Tokens (LSTs). This fictional world is rich with opportunities for interaction, growth, and rewards, all designed to enhance the user experience within the Sanctum platform.

Sanctum Instant Unstake

Sanctum Instant Unstake is designed to provide immediate liquidity for staked SOL (Solana). Typically, unstaking SOL can take up to 3 days, as you need to wait for the next epoch. However, Sanctum solves this problem by allowing you to convert your staked SOL into liquid SOL instantly.

How to Unstake a Stake Account Instantly

• Visit the Sanctum Instant Unstake platform
• Select Your Stake Account: Choose the stake account you wish to unstake.
• Instant Unstake: Click the ‘Unstake Instantly’ button. Sanctum will transfer the selected stake account from you to their reserve pool and provide you with the equivalent amount of SOL, minus a small fee.

Benefits of Sanctum Instant Unstake

Immediate Liquidity: Access your funds without waiting for the unstaking period.

Flexibility: Move your stake from one validator to another instantly.

Security: Sanctum is formally audited and open-sourced, ensuring a safe and transparent process.

$CLOUD

At its core, $CLOUD is more than just a governance token; it is a pivotal element in Sanctum’s evolving ecosystem. Holders of $CLOUD will be able to participate in governance decisions, particularly concerning the allocation of resources within the Sanctum ecosystem.

Tokenomics and Allocation

The total supply of $CLOUD is capped at 1 billion tokens. Below is the token allocation.

• Launch Liquidity (20%): 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.
• Community Reserve (30%): 30% of the total supply will be governed by the community. The community reserve will be used strategically to grow the pie (via future airdrops, active staking rewards, grants, etc.), although the community decides what to do with this at the end of the day.
• Strategic Reserve (11%): 11% of the supply has been allocated to the Strategic Reserve, which will be used by the team to grow the Sanctum ecosystem.
• Team (25%): 25% of the supply has been allocated to founders and core contributors, who have been building Sanctum for more than three years.
• Investors (13%): 13% of the supply has been sold to investors.
• Jup LFG (1%): 1% will be given to Jupiter LFG.

Conclusion

By offering a unified liquidity layer, Sanctum not only improves the UX but also opens up a world of possibilities for DeFi users, developers, and liquidity providers. Its vision to create an ecosystem that fosters infinite LSTs, seamless integrations, and new revenue streams signals a promising future for Solana and its users. As Sanctum continues to develop and expand its offerings, its impact on the Solana network is expected to be profound.