Reserve

Mechanism

When you stake, you retain ownership of the stake account because you have authority over it, both as the staker and the withdrawer. However, advanced features of the Stake Program allow you to set another wallet as the new authority.

The Reserve takes advantage of this feature to provide instant liquidity for your SOL. When initiating the transaction, the Sanctum Reserve will be set as the new authority, and you will receive SOL from the Reserve in exchange. Since LSTs are wrappers for stake accounts, the program also accepts them, first burning them to access the underlying stake account.

Scenario 1: set stake account staker and withdrawer auth to the Reserve and receive SOL

Scenario 2: burn LST to extract stake account then Scenario 1

Upon receiving the active stake account, the Reserve will begin the unstaking process to claim the SOL in the stake account at the end of the epoch and replenish its reserves.

The Reserve can either work standalone or with the router to provide more liquidation options.

Currently, there is over 400k SOL in The Reserve. Deposits are not currently open to retail users. The Sanctum Reserve acts as backstop liquidity and is only used for last resort liquidity needs, when neither the Router nor Infinity can be used.

Fees

There is a dynamic fee charged for utilisation of the Reserve Pool - based on the percentage of SOL left in the Reserve pool. This allows for low fees most of the time, and ensures efficient usage of SOL in times of great liquidity demand. Fees range from 8 to 800bps.

Security

Audit 1: Sec3