Can sCLOUD be as composable as JLP?

CLOUD CLOUD - Ideas
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I like to think of this as a logical follow on from the CLOUD As The Engine of Sanctum as that is solving for how and why sCLOUD accrues value, where as this is talking about how sCLOUD can be used as a yield bearing token. Lets assume that, for the purposes of the discussion below, sCLOUD is a yield bearing token.

JLP, much like the GLP model it is copied from, is a yield bearing token. Quite a healthy yield too as it represents a basket of assets backing Jupiter Perps which are able to charge very high interest rates. JLP is able to be borrowed/lent, looped, and LP’d across the Solana ecosystem and it’s this flexibility which has seen it’s usage explode.
At it’s core it’s pretty much an LST in terms of how it looks to the holder, but an LST with very high yields (and more risk too).

At present we can have our CLOUD staking position represented in our wallets as sCLOUD but the use of sCLOUD is very limited as to what it can be used for. Back a few years ago, deep in the last crypto winter, GMX was one of the few revenue generating projects in crypto and GLP was one of the few success stories in a defi sector that had been decimated. GLP’s, like JLP’s, “trick” was it was able to be easily built on by other teams. I myself had, until recent times, a leveraged JonesDAO GLP vault position. Many people had similar positions back then too.

This discussion is about digging into what kinds of functionality sCLOUD could/should be used for and how it’s usage might be expanded.
I think the GLP example is important as it emerged as one of the few defi products with PMF when the downturn came and definitely kept GMX going when most other DEXs ended up shutting down.
There will be a severe market crash at some stage most likely and the more PMF products Sanctum can have established the better placed they are to weather that storm.

I think the potential value prop here is clear: It’s a yield bearing asset. And if you’re someone who has a project that they want to provide liquidity for, and you don’t need trading volume in order to make your business model work, then why wouldn’t you want LP pairs that generated yield over and above trading? It doesn’t make a lot of sense for a project to lock up significant value into non-revenue generating assets such as SOL, USDC, USDT etc…. if there’s little to no upside to holding these. Better than sits in assets that generate revenue (e.g., LSTs, JLP etc…).

So let’s get thinking about what sCLOUD the token means and what PMF for it as a product could look like.

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Whilst I don’t think this is the right place to discuss the mechanics of how sCLOUD accrues value, I think we should talk about staking score.

At present it’s the only tangible value that sCLOUD collects (assuming that this translates to ASR rewards). For purposes of this discussion we’ll assume it’s staying around though it’s unclear if this is a longer term feature for Sanctum.

Does staking score accrue to all sCLOUD? That is if I was to lend my sCLOUD or LP it, would it still keep collecting staking score?

If I borrow sCLOUD do I get the staking score from that sCLOUD or does the lender keep it?

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Can you explain the mechanism more? JLP’s returns come from trading fees (and liquidations?) from the Perps product. I.e. the “LP” is providing liquidity to Perp traders who tend to lose more than they win - hence JLP’s strong return profile combined with an uptrending market (i.e. capital appreciation of the ~60% underlying crypto majors exposure).

‘Yield’ has to come from somewhere - I’m not seeing where it comes from in sCLOUD’s case.

If your answer is protocol revenues, mine would be: I want the Sanctum team to be reinvesting profit margins into aggressively growing and taking on competitors - not paying out LP’s or token holders (of which I am one)!

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As mentioned in the original post, there is already a separate discussion around sCLOUD utility, including possible revenue streams

This discussion assumes some sort of accured value in sCLOUD and talks about the functionality of the token itself

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