[Proposal] CLOUD-04 Proposal: CloudSol Initiative

Sanctum Governance
1

What’s CloudSol?

CloudSol is a staking solution that lets you earn $CLOUD tokens without spending any money. All the $SOL generated by the LST is used to buy $CLOUD.

Why Does It Need a Vote?

I want to introduce a community fund to give extra incentives for staking $SOL with CloudSol. The longer you stake, the more rewards you get.

Proposed Reward Structure:

  • 0 to 1 month: Base APY (paid in $CLOUD)
  • 1 to 2 months: Base APY + 5%
  • 2 to 3 months: Base APY + 10%
  • And so on: +5% for each additional month

Token Allocation:

I amproposing an initial allocation of 5 million $CLOUD tokens. Once this is used up, we can vote to add more if the program shows positive results.

Benefits:

  • More $CLOUD Holders: Encourages more people to hold $CLOUD, potentially for the long term.
  • Low Market Impact: Since $CLOUD is bought with staked $SOL, there’s less risk of a big price drop from instant sell-offs.
4 Likes
2

I think this is a great idea deserving of some discussion! Not sure about the numbers you’ve proposed, but I really like the concept of cloudSOL and how it can be used as a buyback! Great for the community.

3 Likes
3

I really like this idea. Anyway for me to farm cloud is great as I think it has a lot of upside potential just to get back to it’s all time highs. Plus I would be holding sol too which I do anyway.

2 Likes
4

Thanks. And I think it is a good and safe way for people to get into Sanctum projects.

Because people who already have cloud don’t have much SOL left as they bought the dip again and again /s

3 Likes
5

how will this LST earn $SOL to buy #cloud ?

IMO, there are already wayyyy too many LSTs and it’s diluting the shares of each LST in the market. Better if we strengthen the existing ones.

As for the benefits you mentioned, I hold the opposite point of view where I think it has more negative impact to the long term ._.

6

All lst earn sol.

With a regular lst with 10%apy. When you swap your sol to XSol, and hold it for one year, when you swap back your XSol to SOL, you will have 1,1 SOL.

With this CloudSol, after one year of holding CloudSol, and when you swap back, you will have 1 SOL, and 0.1 worth of SOL in $CLOUD.

For the negative impact, please develop.

7

Im not sure if you meant this to work this way already but what about making the cloud purchases be just time dependent and the cloudsol then act as a traditional Lst tied to sol price with an associated apy?

I say this because if the apy gains go right to cloud with the additional time based bonus going right to cloud then what happens if the price of sol goes down? Then I guess the cloud balance would be sold off & when/if there is no more cloud the sol balance would be sold off?

I really like this apy + time bonus going all to cloud im just trying to work out how it would work. I might be missing something as my knowledge is not complete.

1 Like
8

This is an interesting proposal.

I believe we need to strengthen the cloud token through actions that appreciate its value. This tends to make the project stronger, in addition to attracting more market attention.

2 Likes
9

In regular lst, after each epoch your bag grows.

1 SOL > 1 XSol. With 10% apy.

After 1 month you bag will be 1(your holding) +1.1(the 10%)/12(12 months)
You will now own 1.0916 XSol, (aka 1.0916 SOL)

Your bag increases after each epoch. Which last 2 days.

So we take this one month apy we divide it by 15.

And we get 1.0061 XSol.

So with CloudSol, I propose that we take those 0.0061 SOL, and swap it to cloud.

1000001163
10000011631220×904 62.6 KB

TL;DR : you will get about 11 cloud every 2 days with 1 SOL staked, and with the actual market.

3 Likes
10

I think this idea is pretty interesting. As a Sanctum booster the LST I am inclined to hold is INF. But if CloudSOL was launched this would be even more aligned with my values. However, on its own CloudSOL is kind of a gesture toward supporting the protocol. If holding CloudSOL could be integrated into Sanctum products and incentivized (e.g. Season 2 multiplier) its adoption would be wider. CloudSOL should be developed and marketed as a product along INF IMO.

I would absolutely hold a portion of my SOL in CloudSOL to support Sanctum/the Cloudfam.

1 Like
11

You are missing the point of what Sanctum is trying to do. There should be dozens/hundreds of LSTs for myriad purposes. Sanctum supports the liquidity for all of them. There is no ‘dilution,’ just new LST use cases (like CloudSOL) to be imagined.

1 Like
12

There is an incentive in my proposal. An extra 5% per month holding CloudSol.

But I am sure that cloud already has its place in the S2

2 Likes
13

Great! Sorry for not acnklowedging that in my reply. I do wonder about the scaling of your incentives. 5% is not much at the beginning and the +5% a month would get problematic with many long term holders. The emissions curve/incentives may need some refinement.

This is a great proposal and I will absolutely support your efforts here. I WANT to hold this LST to support Sanctum and CLOUD governance.

1 Like
14

It is +5% every month. If we keep my example above with 1 SOL.

You would get 11 CLOUD every 2 days so 165 cloud the first month.

Month 2 : 173.25 CLOUD

Month 6 : 214 CLOUD
That’s an extra 49.5 cloud with the same 1 CloudSol.
And it will just keep increasing.

After it will have to go through a 7 days discussion where the community will polish this proposal.
Instead of 5% it could be 8.333% so we would get 100% bonus after 12 months.

2 Likes
15

Okay so it’s a monthly cloud purchase with accumulated sol from normal Lst/apy stuff. I got that and also time bonus is good. And I guess if price of sol goes down on monthly then no monthly cloud purchase.
Does the monthly time bonus go to buy cloud regardless of Lst/sol/apy performance? Like if price of sol goes down monthly then time bonus still buys cloud? That seems good if so.
Yeah I also like this and would buy because I get the essentially a cloud farm. It’s like a dividend etf.

The only idea I want to put out there is to make the sol Lst separate from the cloud farm & the cloud farm would be based on just the time component. So you get the benefit of holding the Lst with its apy for sol but you get that added benefit of the cloud purchases based on time held component. In this case I would make even the first month get some small initial bonus.

Another benefit of this might be that another defi site could make a liquidity pool or some way to earn more passive income from the cloudsol. Maybe you could make a liquidity pool even if all the Lst apy and bonus went to cloud. Im not sure.

1 Like
16

I like the idea of having a multiplier for season 2

2 Likes
17

The price of SOL doesn’t have any effects on the apy. In my example above you get 0.0061 SOL. If sol’s value is 100 or 300, you will still get 0.0061 SOL. And those will be used to buy cloud.

So if the price goes down, the worst is that you will get less cloud. But you will always earn 0.0061 worth of cloud. And the bonus will be apply on that amount of cloud.

If you were meant to receive 100 cloud and you are at your 3rd months of holding, then you will receive 100+15%
So 115 clouds.

3 Likes