What is Sanctum?
Sanctum is a project built on the Solana blockchain with the goal of “decentralizing” Solana. It aims to evenly distribute all staked Solana across the entire Solana network. To get there, Sanctum want to make all SOL staked, and all staked SOL liquid. This is a future where LSTs are truly accessible to all – you can issue your own LST without worrying about liquidity, and you can browse infinitely-many LSTs to invest in your favourite ones.
Sanctum offers a range of products that customers can use, including the following:
- Infinity: Deposit liquidity (any LST or SOL) into our flagship product, Infinity Pool, in exchange for the Infinity (INF) token.
- Trade: Buy and sell any and all LSTs, instantly.
- Stake Accounts: Instantly convert your existing stake accounts to LSTs.
- LSTs: Browse, discover and learn more about each LST and what they can do for you.
Let’s break down the product one by one in more depth!
Infinity Tab in Sanctum
The Sanctum Infinity Pool is a multi-LST liquidity pool that lets you swap between all the LSTs in the pool.
When you deposit into Infinity, you can use any of the whitelisted LSTs or SOL. In return, you’ll get INF, which is like a receipt token representing your share of the total pool.
Think of Infinity as a basket of LSTs, and INF as an index of some of the best LSTs out there. Since LSTs generate yields, INF does too, with an APY that’s the weighted average of the staking yields from all the LSTs in the Infinity Pool, plus any trading fees the pool earns.
Trade Tab in Sanctum
The Trade tab is where you can easily buy and sell LSTs and SOL. Sanctum. Sanctum makes it easy for users to do everything on one website.
Example 1: Bill is trading SOL for bonkSOL (SOL -> bonkSOL). This means he’s using SOL to buy bonkSOL. In other words, she’s selling SOL to get bonkSOL.
Example 2: Dennis is trading compassSOL for picoSOL (compassSOL -> picoSOL). This means he’s using compassSOL to buy picoSOL. In other words, he’s selling compassSOL to get picoSOL.
The value of SOL and the LSTs is 1:1
Stake Accounts Tab in Sanctum
If you currently have stake accounts in your wallet, the Stake Accounts tab lets you:
- Instantly convert your stake accounts to liquid staking tokens (LSTs)
- Unstake your stake accounts to receive SOL, aka Instant Unstake
Your stake accounts represent your SOL delegated to validators for on-chain staking. Easily convert them to their validator LSTs or unstake them instantly.
You will not be able to convert a stake account to LST if that particular validator does not have it’s own LST.
LSTs Tab in Sanctum
In the LSTs Menu Tab, users can see all the LSTs supported by Sanctum. Once users have chosen their preferred LST, they can simply press the “Buy” button, which will direct them to the Swap Menu with the selected LST already chosen. The LST Menu Tab in Sanctum is designed to make it easy for users to view all the available LSTs within Sanctum
Frequent Ask and Question about LST
1. What is Liquid Staking Token (LST)?
A Liquid Staking Token (LST) is a type of crypto token that stands for staked assets in a blockchain network. Here’s a simple breakdown of what it is and how it works:
- Staking: In many blockchain networks, staking means locking up some of your cryptocurrency to help run the network, like validating transactions and keeping things secure. In return, you earn rewards
- Liquidity Problem: Normally, when you stake your assets, they’re locked up and you can’t use them for anything else. This lack of liquidity can be a hassle if you want to use your staked assets for other things
- Liquid Staking Tokens: LSTs fix this issue by giving you tokens that represent your staked assets. These tokens can be traded, transferred, or used in decentralized finance (DeFi) apps, while your original assets stay staked and keep earning rewards
2. What is the Benefit of Liquid Staking Token (LST)?
- Flexibility: LSTs let you use your assets while still earning staking rewards
- Higher Yield: You can use LSTs in various DeFi platforms to potentially increase your overall earnings
- Easy Management: LSTs make it simpler to handle your staked assets without being tied down to a long-term lockup
3. How Liquid Staking Token (LST) Does Work?
- When you stake your assets through a liquid staking service, you get an equivalent amount of LSTs. Usually the ratio of asset values is 1:1
- You can then use these LSTs for different DeFi activities, like lending, borrowing, or trading.
- The value of LSTs is linked to the value of your staked assets and the rewards they generate.
In short, Liquid Staking Tokens let you enjoy the benefits of staking while keeping your assets flexible and usable in the broader crypto world.
4. What Does Sanctum LSTs Mean?
The “Sanctum LST” tag indicates that the particular LST was issued in partnership with Sanctum, whereby:
- The LST was minted using the Sanctum Single Validator SPL Stake Pool Program or the Sanctum Multi-validator SPL Stake Pool Program
- Single: SP12tWFxD9oJsVWNavTTBZvMbA6gkAmxtVgxdqvyvhY
- Multi: SPMBzsVUuoHA4Jm6KunbsotaahvVikZs1JyTW6iJvbn
- The project is a Sanctum partner and has been vetted by Sanctum
Further, we classify LSTs on Solana into two categories to facilitate the ease of your assessment when browsing LSTs – Sanctum LSTs vs. Others
5. Who Controls the LSTs?
Sanctum has launched many new LSTs; some have asked who controls these. The individual projects do not control the LSTs. Rather, it is controlled by a multisig.
The upgrade authority of Sanctum’s LSTs is currently held by a 9-member multisig. All members are highly reputable actors in the space: Jupiter, Laine, Mango, mrgn, Solblaze, and Sanctum. Any changes to the LST program will have to be approved by a majority vote from this multisig. No single party can unilaterally change the program. We plan to significantly grow the size of the multisig and eventually freeze the program.
