Sanctum (CLOUD) Investment Analysis: Project Analysis and Market Expectations

远山洞见2024/07/23 02:41

By:远山洞见

I. Project introduction

Sanctum is a Solana-based liquidity staking protocol designed to optimize and expand users' asset utilization efficiency through liquidity staking. Through this platform, users can deposit SOL or other liquidity support tokens (LSTs) into their Infinity product to earn returns. Sanctum emphasizes its strong infrastructure for the future financial ecosystem, especially through its Sanctum LSTs and Infinity products.

Sanctum LSTs is an innovative form of token that allows more participants to publish and manage their own liquidity-backed tokens in the Solana ecosystem. This approach lowers the barriers to market entry and drives broader customer engagement and Network Effects.

Infinity product is an advanced staking and trading platform that utilizes Sanctum's core technology to provide a secure and efficient environment for users to deposit their assets and receive corresponding returns. Infinity's design fully utilizes Solana's high-throughput features to process a large number of transactions without sacrificing speed and security

II. Project highlights

1. Enhanced capital efficiency and liquidity

Sanctum utilizes its unique reserve and router methods to provide users with a highly capital-efficient LST (Liquidity Support Token) redemption and exchange method. This method not only enhances the platform's liquidity, but also enhances user attractiveness, making the circulation of funds more efficient and convenient.

2. Promote decentralization and increase competition

Sanctum lowers the threshold for creating LSTs, allowing smaller validators to publish their own tokens. This strategy not only promotes the decentralization of the network, but also increases competition among validators in the Solana network, bringing positive impacts to the security and efficiency of the network.

3. Enhanced market acceptance and trust

Sanctum's Total Value Locked (TVL) has grown from $20 million to $880 million since January 1st this year, currently ranking fifth in TVL on the Solana chain, second only to Raydium. This growth not only reflects the market's high acceptance and trust in the Sanctum platform, but also demonstrates its competitiveness and influence in the DeFi field.

These highlights demonstrate Sanctum's strength in providing innovative services, especially in improving capital efficiency and network decentralization. Through continuous technological innovation and market expansion, Sanctum is expected to continue to play a key role in the staking and liquidity sectors.

III. Market value expectations

As a Solana-Based liquidity pledge protocol, TVL is the most intuitive display of market funds and user attitudes towards the project. From January 1, 2024 to today, Tvl has grown from $20 million to around $8.8, ranking fifth in the sol chain, second only to Ray, which to some extent proves its attractiveness to the market.

From a native technology perspective, Sanctum focuses on providing robust infrastructure support to ensure the stability and security of the Solana ecosystem. Its Infinity multi-LST liquidity pool gathers liquidity from various trading pairs, enhancing liquidity and reducing slippage risk. The reserve pool and router facilitate instant staking services and efficient LST token exchanges, supporting liquidity and stability, and have also been recognized by users.

Sanctum (CLOUD) is expected to stand out in the liquidity pledge sector with strong technical skills, bullish capital, and Vc support, and may achieve stable market value growth.

IV. Economic model

The economic model of Sanctum token (CLOUD) is designed to support its liquidity staking protocol in the Solana ecosystem. The following are the key components of the economic model:

Total Supply: The total supply of CLOUD tokens is set at 1 billion.

The distribution plan is as follows:

Community Reserve 30%: This portion of the token is used to incentivize community participation and contributions, which may include reward programs, governance voting, and other community-driven activities.

Strategic Reserve 13%: Used to support the long-term development of the Sanctum ecosystem, such as future partnerships, strategic investments, and market expansion activities.

Team 25%: To ensure that the team is consistent with the long-term goals of the project, this part of the tokens will be locked for one year and then linearly released within 24 months.

Investors 13%: The tokens obtained by initial investors will also be locked for one year, and will be released linearly over a 24-month period to ensure that investors are tied to the long-term interests of the project.

Initial Airdrop 10%: Distributed to community members during the token first generation event (TGE), aiming to quickly expand the user base and increase the initial circulation of tokens.

LFG Launch 8%: In order to provide sufficient liquidity on Jupiter Launchpad, this portion is used for initial liquidity injection.

LFG donates 1%: This part of the token is donated to Jupiter LFG, usually used to reward voters who participate in governance.

In the Initial Coin Generation Event (TGE) of Sanctum (CLOUD), the maximum initial circulation rate of tokens was 18%. In addition, according to Cryptorank's data, CLOUD's fully diluted valuation (FDV) is $50 million. This valuation reflects the total market value if all CLOUD tokens were put into the market at the current planned price.

V. Team and financing

Sanctum is led by Jesse Cho (CTO and co-founder), Jaye Tan (co-founder), and FP Lee (co-founder). Together, they have driven the development and innovation of Sanctum in the field of liquidity staking protocols.

In terms of financing, Sanctum has completed two rounds of fundraising, including a seed round and a seed round expansion funding. In the seed round in December 2021, Sanctum raised $5.75 million from investors including Dragonfly, Jump Capital, CMS Holdings, DeFiance Capital, Solana Ventures, GenBlock Capital, etc. In April 2024, they raised $350,000 in the seed expansion round. These funds will be used to further develop Sanctum's technology and expand its application in the Solana ecosystem.

VI. Risk Warning

1. The cryptocurrency market is volatile, and large price fluctuations may lead to investment losses. Therefore, cautious decisions should be made and market risks should be fully understood.

2. Despite innovation, Sanctum faces fierce competition from established players such as Jito, who have dominated Solana's LST market.

VII. Official link

Website： https://www.sanctum.so/

Twitter： https://x.com/sanctumso

Discord： https://discord.com/invite/sanctumso

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.