Exploring Sanctum On-Chain: A Deep Dive with SolanaFM

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3 Aug 2024

The landscape of Liquid Staking on the Solana blockchain is undergoing a significant transformation, with Sanctum emerging as a pivotal player in this evolution.

For users who are staking or contemplating staking SOL, understanding how to effectively manage and utilize this process is crucial. Sanctum offers innovative solutions for unstaking and swapping staked SOL, making it a valuable tool for optimizing your DeFi experience.

This article provides an in-depth exploration of the Sanctum protocol, its functionalities, and how to use SolanaFM Explorer to verify your transactions.

Understanding Sanctum: A Protocol for Staking Flexibility

The Core Functionality

Sanctum operates as an on-chain stability protocol designed to enhance the liquidity and usability of staked SOL within the DeFi ecosystem. Traditionally, unstaking SOL on Solana involves a waiting period of one epoch, which can span 2-3 days.

For users seeking immediate liquidity, instant unstaking options are often available but at a higher cost. Sanctum addresses these limitations by offering instant unstaking across multiple Liquid Staking Tokens (LSTs), thereby reducing fees and increasing efficiency.

Sanctum's protocol aggregates optimal routes for unstaking or swapping staked SOL, facilitating transactions with the lowest possible fees. By providing access to various LSTs, including bSOL, cgntSOL, daoSOL, eSOL, jitoSOL, JSOL, laineSOL, mSOL, riskSOL, scnSOL, and stSOL, Sanctum caters to diverse user needs and preferences.

Key Components of Sanctum

Sanctum’s functionality hinges on several core components:

Sanctum Router Program: This central program orchestrates interactions between different stake pools and accounts on Solana. It simplifies the process for users by abstracting the complexities involved in managing stake accounts and routing swaps.
Sanctum Unstake Program: Responsible for managing the Sanctum SOL Reserve Pool, this program facilitates instant liquidity for users by transferring SOL from the reserve pool to their wallets.
Sanctum SOL Reserve Pool: A crucial element, this pool ensures that liquid SOL is available for immediate transfer to users, enhancing the flexibility of unstaking operations.

Navigating Sanctum Transactions on SolanaFM

Instant Unstaking

Sanctum's instant unstaking feature enables users to access their staked SOL without the usual waiting period.

This functionality is vital for those who need quick liquidity. The Sanctum Unstake Program initiates the transfer of SOL from the reserve pool to the user’s wallet and deactivates the stake account in the process.

For example, a recent transaction demonstrates the instant unstaking process: Instant Unstake Transaction

Swapping Staked SOL

Swapping is another powerful feature of Sanctum, allowing users to convert one LST into another. This process involves splitting the staked SOL from one validator’s stake account and merging it into another.

The Sanctum Router Program executes this swap by leveraging Cross-Program Invocations (CPIs) to manage the split, burn, deposit, and mint actions.
An illustrative transaction of swapping staked SOL is as follows: Swapping Stake Transaction

Instant Staking

Instant staking allows users to directly swap their liquid SOL into a new LST. This feature is particularly useful for users looking to quickly reposition their holdings within the DeFi space.

The transaction involves converting SOL into wrapped SOL (wSOL), using it to mint a new LST, and then transferring the new token to the user’s wallet.
A notable transaction for instant staking is: Instant Stake Transaction

Utilizing SolanaFM Explorer for Transaction Verification

Transaction Verification

SolanaFM Explorer is an essential tool for verifying and analyzing Sanctum transactions. By using the provided transaction links, users can review the details of each action, including the involved accounts, token transfers, and program calls. This transparency helps users ensure that their transactions have been executed correctly and provides insights into the operation of the Sanctum protocol.

Exploring DeFi Strategies

Beyond basic transactions, SolanaFM Explorer allows users to delve deeper into the DeFi strategies employed by other wallets.

By examining transaction histories and interaction patterns, users can gain valuable insights into how other participants are managing their staked SOL and employing various strategies within the DeFi ecosystem.

Conclusion

Sanctum represents a significant advancement in the Solana ecosystem, offering enhanced flexibility and efficiency for managing staked SOL. By utilizing features such as instant unstaking, swapping, and staking, users can navigate the complexities of DeFi with greater ease.

SolanaFM Explorer provides a valuable resource for verifying transactions and exploring the broader implications of these on-chain activities. With these tools and insights, users can optimize their engagement with the Solana blockchain and make informed decisions in their DeFi ventures.