What is Sanctum?

• Sanctum is the next generation stability protocol for Solana DeFi.

• Sanctum acts as a buffer, or a backstop, that enhances liquidity depth across the chain, and helps reduce turbulence when volatility hits.

How does Sanctum provide stability?

Sanctum stabilises Solana through two functions.

1. Sanctum unlocks staked SOL to use throughout DeFi by providing a backstop of SOL liquidity.

2. Sanctum makes sure DeFi borrow-lend protocols remain solvent by providing a safe haven of SOL to flash loan and close LST-collateralised positions.

By doing so, Sanctum unlocks new opportunities for staked SOL, and ensures the smooth functioning of DeFi.

Want to learn more about how does Sanctum work?

Check the link below from SolanaFM guys with a complete explanation of the project.

SolanaFM Article