Sanctum is a specialized network built on the Solana blockchain, providing developers with the infrastructure needed to create innovative crypto staking applications. The platform is widely recognized for its scalable and user-friendly tools, particularly for Liquid Staking Tokens (LSTs).
LSTs represent an advanced approach to cryptocurrency staking. Instead of locking tokens directly into a validator node, users deposit them into a smart contract or a staking pool. In return, they receive a different token that represents their staked amount. These staked tokens typically continue to earn rewards over time.
The LSTs received can be freely traded, used to fund transactions within DeFi applications, or transferred to a cold wallet for safekeeping. This flexibility allows users to maintain liquidity while still earning staking yields.
Several prominent Solana-based platforms have integrated Sanctum’s LST technology, including:
- Bonk
- Jupiter
- Drift
- Helius
One example of how Sanctum is used in practice is the BonkSol non-custodial pool. Users can deposit SOL or their validator stake account into this pool, knowing their funds remain secure since the team has no access to them. The deposited SOL is then staked using BONK validators, and users receive BonkSol tokens in return. These tokens accumulate staking rewards over time.
What Is $CLOUD?
$CLOUD is the governance token for the Sanctum ecosystem. Its launch on July 18 was highly anticipated among long-term platform users and airdrop hunters.
The primary utility of $CLOUD revolves around voting on proposals related to the usage of Sanctum’s treasury funds and managing the platform’s certified partner program.
At launch, the majority of the tokens were distributed to the community. The allocation breakdown was as follows:
- Launch Liquidity: 20%
- Community Reserve: 30%
- Strategic Reserve: 11%
- Team: 25%
- Investors: 13%
- Jup LFG: 1%
Users who were eligible for the $CLOUD airdrop received up to 100% bonus allocations based on their participation and engagement.
What Is Sanctum Wonderland?
Sanctum Wonderland is an initiative that gamifies conventional blockchain processes and introduces a reward mechanism for using Liquid Staking Tokens (LSTs).
Users who hold LSTs are assigned “pets” that gain experience points (EXP) over time. The amount of EXP earned is directly tied to the distribution of $CLOUD tokens.
During Wonderland Season 1, there were 18 different LSTs and corresponding pets available for collection, including:
- Bonksie (BonkSol)
- Clockie (ClockSol)
- Compie (CompassSol)
In addition to the base EXP earning rate, users could complete various community tasks and challenges to earn “multipliers.” These multipliers temporarily increased the rate at which EXP was accumulated.
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Frequently Asked Questions
What is liquid staking?
Liquid staking allows users to stake their cryptocurrencies while maintaining liquidity. Instead of locking assets directly with a validator, users receive a liquid token representing their stake. This token can be traded or used in other DeFi applications while continuing to earn staking rewards.
How does Sanctum differ from other staking platforms?
Sanctum is built specifically for the Solana blockchain and focuses heavily on user experience and scalability. Its tools are designed to be developer-friendly, enabling the creation of custom staking applications and liquid staking tokens with reduced complexity.
Is staking with Sanctum safe?
Sanctum utilizes non-custodial staking pools, meaning users retain control of their funds. The smart contracts involved have been audited, and the platform is integrated with reputable Solana validators. However, as with any DeFi protocol, users should perform their own due diligence.
What can I do with LSTs?
Liquid Staking Tokens can be used across various DeFi applications for lending, borrowing, or providing liquidity. They can also be sold on supported exchanges or held long-term to accumulate compounding staking rewards.
How do I earn $CLOUD tokens?
$CLOUD tokens are distributed through community airdrops, governance participation, and engagement with Sanctum’s ecosystem programs like Wonderland. Holding and using LSTs may also make users eligible for future rewards.
Can I participate in Sanctum if I’m not a developer?
Yes, end users can stake SOL through Sanctum-integrated applications like Bonk or Jupiter to receive LSTs and participate in programs like Wonderland without any coding required.
Sanctum represents a significant innovation in the liquid staking landscape, especially within the Solana ecosystem. By combining developer-friendly infrastructure with engaging user experiences like Wonderland, it offers both technical flexibility and community-driven growth. Whether you are a developer looking to build staking solutions or a user interested in liquid earning opportunities, Sanctum provides a compelling platform to explore.