Sanctum.so is an innovative liquid staking protocol on the Solana blockchain that facilitates the creation and management of Liquid Staking Tokens (LSTs). These tokens offer users the benefits of native staking along with liquidity within the Solana DeFi ecosystem.
General Information and Tokenomics
The $CLOUD token serves as a governance token and is central to the management and growth of the Sanctum ecosystem. The total supply is 1 billion tokens, distributed as follows:
(Welcome to Sanctum | Guides) (SolanaFloor) (Metaverse Post).
Airdrop
The initial airdrop of $CLOUD comprises 10% of the total supply and targets participants of Sanctum's first Wonderland season. Participants who earned Experience Points (EXP) during Season 1 receive a proportional share of $CLOUD tokens. The airdrop checker went live on July 16, 2024, and the airdrop took place on July 18, 2024 (Phantom) (SolanaFloor).
Alpha Vault
To ensure a fair and bot-free launch, Meteora’s Alpha Vault supports the token launch. Users can deposit USDC into the vault, and token distribution is proportional to the deposited amount. These tokens are sold at a discount but are subject to a lockup period to exclude short-term speculators and favor long-term investors (Sanctum Research).
The "Earnest" factor is an additional mechanism aimed at fostering long-term participation and engagement within the Sanctum community. This factor evaluates users based on their active participation and contributions to the platform. Key aspects of the Earnest factor include:
- Active Participation: Users who regularly participate in community events, governance votes, and other activities receive a higher Earnest factor.
- Quality of Contributions: Valuable or useful contributions to the community also enhance the Earnest factor.
- Long-term Engagement: Users who hold their tokens for extended periods and do not sell immediately are rewarded with a higher Earnest factor.
Earnestness Bonus Allocation retweeted by @soleconomist
The Earnest factor influences various aspects within the Sanctum ecosystem, such as the amount of rewards received or priority in future airdrops and other incentives. This mechanism ensures that those who contribute the most to the platform's development and growth are appropriately rewarded (SolanaFloor) (Metaverse Post).
What are LSTs?
Liquid Staking Tokens (LSTs) are an innovation in the staking sector on blockchain platforms like Solana. They allow users who stake their cryptocurrencies to receive a liquid version of these staked assets, which they can continue to use within the DeFi ecosystem. These tokens represent the staked amount and earned staking rewards, offering liquidity without forgoing the benefits of staking.
Significance of LSTs
LSTs provide several advantages:
- Increased Liquidity: Users can trade their staked assets or use them in DeFi protocols without unstaking.
- Additional Earning Opportunities: Using LSTs in various DeFi applications can yield additional returns.
- Flexibility: LSTs offer a flexible way to participate in staking rewards while benefiting from liquidity in DeFi.
- Reduced Risk: Users can quickly liquidate staked assets if needed, reducing the risk associated with holding illiquid staked assets.
Sanctum.so has introduced various LSTs to offer these benefits to users on Solana, enhancing the integration of staking and DeFi (Welcome to Sanctum | Guides) (Sanctum Research).
Recommended Socials to follow:
- FP Lee - Founder of Sanctum.so (https://x.com/soleconomist)
- Sanctumso - Official X Channel (https://x.com/sanctumso)
- Discord (https://discord.gg/sanctumso)
- Earnestness in Details (https://x.com/soleconomist/status/1810345428292170090)
All the best,
RivalzZz
