Pudgy Penguins teams up with Solana's 'Sanctum' to expand DeFi… launches 'penguSOL'

The non-fungible token (NFT) project Pudgy Penguins has partnered with the Solana (SOL)-based liquid staking token (LST) protocol 'Sanctum' to expand the decentralized finance (DeFi) ecosystem. It is drawing attention as a new form of DeFi entry that combines NFT IP (intellectual property) and staking liquidity.

On the 13th (local time), Pudgy Penguins said, "Through the partnership with Sanctum, we launched the branded LST 'penguSOL'," and added, "It is designed so Solana depositors can receive staking rewards without losing liquidity."

Sanctum is currently Solana's largest LST protocol with a total value locked (TVL) of US$3.3 billion; when users deposit Solana, they receive it in tokenized LST form and can use it for collateralized lending, trading, and other DeFi activities. While typical Solana staking has the limitation of funds being locked during the deposit period, LST increases operational efficiency through immediate liquidity. In addition to Pudgy Penguins, issuers of Sanctum-based LST currently include Bybit, Jupiter, and Backpack.

The penguSOL launched through this collaboration is a branded LST combined with the Pudgy Penguins IP, designed so Solana holders can earn an annual 6.2% staking return while maintaining liquidity. If utilizing the welfare structure through the Infinity Pool, yields of over 15% can be expected.

penguSOL can be traded and staked directly on the Solana-based decentralized exchange (DEX) 'Jupiter' and the Sanctum explorer page. Deposited Solana is placed on SOL Strategies validator nodes to automatically accrue rewards, and can be redeemed immediately without a separate lockup. Users can utilize penguSOL within DeFi protocols to earn additional yields even while their Solana is deposited.

Pudgy Penguins said, "Solana staking limits liquidity due to about a 3-day lockup," explaining, "Through the partnership with Sanctum, penguSOL allows investors to implement various yield strategies." It added, "We will lead the popularization of DeFi and crypto assets based on Pudgy Penguins' brand IP."

Sanctum said, "Pudgy Penguins is a representative crypto brand encompassing NFTs, games, and physical IP," and stated, "penguSOL will be a link that allows fans to stake Solana while directly supporting the Pudgy Penguins ecosystem."