Moderate risk — well-built infrastructure with strong audit pedigree, but the systemic backstop role creates concentrated risk during market stress events
Risk Breakdown
Top Risks
Sanctum Reserve acts as a liquidity backstop for LST swaps, holding ~700K SOL in reserve — if a major LST depegs and users rush to swap, the reserve could be drained faster than it can replenish.
The protocol aggregates exposure across dozens of Solana LSTs, each backed by different validators with varying quality — a bad validator in any supported LST affects the reserve's solvency.
CLOUD token's $41M FDV is low relative to the $52M in reserves, reducing the economic security margin for governance-based backstop mechanisms.
Frequently Asked Questions
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