Introduction

Overview

SANCTUM is a reserve-backed ERC-20 token deployed on Ethereum mainnet, minted via a one-shot bonding curve and then permanently capped at 462,500 tokens. Its floor price is mathematically guaranteed to rise forever after.

The protocol consists of five on-chain components: the Foundry (a bonding-curve mint that pauses at the cap; any reopen is gated by on-chain conditions and only ever refills burned supply), the Reliquary (a USDC vault that redeems SANCTUM at intrinsic value), SANCTUM (a clean ERC-20 with zero transfer tax, hard-capped at 462,500), the Wards (a Uniswap V4 hook that gates every swap on the open market), and the Pledge (a 99% LTV time-bound lending market with no oracle and no liquidation curve).

The protocol unfolds in two phases. Phase 1 — the Foundry is the opening round of bonding-curve mint. Anyone can forge SANCTUM at the curve price, climbing from $0.10 toward roughly $2.00 across $100,000 of cumulative buy-in. Reserves go straight into the vault. Phase 2 — the Sealing is the moment the cap fills. The supply ceiling is permanently set at 462,500 — supply will never exceed this number. The Foundry pauses at the cap. Any subsequent reopen is gated by specific on-chain conditions (see Architecture) and only ever refills SANCTUM that has burned via default. The Reliquary opens for redemptions, the Pledge opens for borrowing, and the SANCTUM/USDC pool on Uniswap V4 — the Open Court — opens for trading. Every interaction from that moment forward either strengthens the floor or leaves it unchanged.

How to read this Codex

The Codex is split into self-contained pages — one concept each. Use the sidebar to jump between them; everything you need lives a single click away from the threshold. Begin with the Doctrine if you want to know why the floor only rises, or skip to Architecture for the contract graph.

Introduction

The Doctrine

The entire protocol fits in three lines.

Hard-capped at 462,500 · Net deflationary · Floor only rises

The floor — also called intrinsic value — is the ratio of total USDC reserves to total SANCTUM supply. Every protocol fee adds to reserves. Every loan default and every redemption removes more supply than it removes reserves, in proportion. The numerator does not fall faster than the denominator; in most cases, it does not fall at all. The ratio is mathematically constrained to monotonic upward motion.

After the Sealing, the constraint hardens further: supply is capped at 462,500 SANCTUM and the Foundry can never reopen. Defaults and surrenders only shrink supply from there. Every fee on every interaction — buy, sell, redeem, borrow, default — feeds the Reliquary.

The Doctrine is not a slogan. It is a property of the contract: every state transition either increases the floor or leaves it unchanged. There is no operation in the protocol that decreases it. See Mathematics for the operational proof.

Introduction

The Lexicon

SANCTUM uses a small set of consistent names. Each one corresponds 1:1 to an on-chain primitive — the lexicon is poetic, but the contract calls are not.

The lexicon is the brand's most ownable asset — every screen, dashboard, and tweet uses these names. It is also self-documenting: the names suggest the on-chain action.

Architecture

System Overview

SANCTUM is a small set of on-chain components: a token, a vault (the Reliquary), a one-shot mint contract (the Foundry), a Uniswap V4 hook (the Wards), and a leverage router. Every component is on-chain and — after the Renouncement — immutable.

     PHASE 1 — open                  PHASE 2 — sealed
   ┌───────────────────────┐       ┌─────────────────────────────────────┐
   │   The Foundry         │       │      Uniswap V4 (Open Court)        │
   │ (SanctumMintCurve)    │       │   SANCTUM/USDC pool ◄── PoolManager │
   │  $0.10 → ~$2.00       │       └──────────┬──────────────────────────┘
   │  cap: $100,000        │                  │ hook callbacks
   │  → 462,500 supply     │                  ▼
   └──────────┬────────────┘       ┌──────────────────────┐
              │ reserves (Phase 1) │  The Wards (V4 Hook) │ buy: 2% flat
              ▼                    │   asymmetric tolls   │ sell: 1–6% by Vigil
   ┌──────────────────────┐        └──────────┬───────────┘
   │   The Reliquary      │ ◄── 100% of buy + sell tolls ─┘
   │   (USDC vault)       │                            ▲
   │                      │ surrender (4% toll) ───────┘
   └──────┬───────┬───────┘         ┌──────────────────┐
          │       │                 │     SANCTUM      │
    USDC  │       │  collateral     │   (ERC-20 token) │
          │       │  (locked)       │   cap: 462,500   │
          ▼       ▼                 └──────────────────┘
       Keepers ◄── The Pledge ── default ──► The Pyre
                  (99% LTV)                  (supply burn)

Reads phase-by-phase: in Phase 1, the Foundry alone is open — every dollar of buy-in flows into the Reliquary at the curve price, and SANCTUM is minted to the buyer. At the Sealing, the Foundry permanently disables; supply is fixed. In Phase 2, the Wards intercept every Open Court swap, the Reliquary opens for redemptions, and the Pledge issues USDC against locked SANCTUM. All paths terminate at Keepers — wallets holding SANCTUM.

The Foundry SanctumMintCurve.sol

The Foundry is the one-shot bonding curve. It is the only path through which SANCTUM enters circulation. The mint price is a deterministic, monotonically-rising function of total supply forged so far — earlier participants pay less; later participants pay more. The exact curve is the contract; the published shape is:

mint_price(S) = $0.10 × 20^(S / K)

The curve opens at $0.10 at supply zero and climbs to roughly $2.00 at the moment the cumulative buy-in reaches $100,000. At that moment — the Sealing — the supply cap is permanently set at 462,500 SANCTUM, the absolute ceiling supply can ever reach. The Foundry pauses.

Any subsequent reopen is gated. The contract does not refill burned supply continuously or freely; reopen is triggered only when specific on-chain conditions are met — for instance, when supply has fallen well below the cap via Pledge defaults, or when the open-market price on Uniswap trades at a substantial premium to intrinsic value. In every case, the cap of 462,500 is the absolute ceiling: re-mint never crosses it. The exact threshold values are set by the contract.

The combined effect is net deflationary — every burn shrinks supply; the Foundry's reopens, when they occur, only ever refill the space burns have created, never expand beyond the line that was crossed once at the Sealing.

The Order seeds Phase 1 by paying $25,000 into the curve at the opening — the same contract, the same prices, no separate allocation. The remaining $75,000 of the cap is filled by public participation. The Order's curve participation acquires approximately 186,500 SANCTUM at an average cost reflecting the earliest section of the curve; subsequent forgers pay the curve price as it rises.

The Reliquary SanctumVault.sol

The Reliquary holds the USDC reserves that back the supply. After the Sealing, it exposes one redemption action:

• surrender(sanctumAmount) — burns SANCTUM, returns USDC at intrinsic value, charges a 4% toll. The toll remains in the Reliquary; reserves fall by less than supply, so intrinsic value rises.

The Reliquary cannot become insolvent. USDC reserves and SANCTUM supply scale together; the redeemable value of the protocol's outstanding tokens is always at most equal to the reserves on hand.

SANCTUM SanctumToken.sol

SANCTUM is a clean ERC-20. It has no transfer tax, no rebasing, no whitelist, and no ownership privileges over balances. The Foundry is the sole authorized minter (during Phase 1); the Reliquary is the sole authorized burner. After the Sealing, no further mint can occur.

Because the token is a standard ERC-20, every centralized exchange, market maker, and integration treats it as a normal asset. The protocol's behavioral logic lives in the V4 Wards, not in transfer-time hooks — this is a deliberate choice. Token tax is a cage; V4 hooks are a gate.

The Wards SanctumHook.sol

The Wards are a single Uniswap V4 hook contract that fires two ward systems on every swap in the SANCTUM/USDC pool. The hook is registered for these callbacks:

Tolls are deposited directly into the Reliquary at swap time. The pool's V4 LP fee (0.3%) is independent and accrues to liquidity providers in the standard V4 manner — the Wards do not touch it.

The Pledge SanctumVault.sol :: pledge*

The lending market lives on the same contract as the Reliquary, since both operate against reserves. A Pledge locks SANCTUM as collateral and returns USDC at 99% of the collateral's current intrinsic value, minus a 1% origination toll. There is no oracle, no liquidation curve, and no margin call. There is only the vow's expiry. Global outstanding loans are capped at 50% of vault reserves at any moment — see The Pledge.

The Two Phases

Foundry & Reliquary

SANCTUM unfolds across two distinct phases. Phase 1 is a single open round of bonding-curve mint at the Foundry. Phase 2 is everything that follows the Sealing — redemption, lending, and a free market on Uniswap V4.

Phase 1 — The Foundry

The Foundry is a single, public round of bonding-curve mint. Every dollar of USDC paid into the curve is deposited into the Reliquary. Mint price climbs deterministically with each forge — earlier participants pay less; later participants pay more.

The Order seeds the curve at the opening with $25,000 of curve participation (~186,500 SANCTUM at the earliest, cheapest section of the curve). Public participation fills the remaining $75,000 of the $100,000 cap. There is no separate allocation, no priority window outside the curve, and no minting from thin air; the Order's tokens are bought at the curve like everyone else's.

When the cap fills — possibly within minutes, possibly across days — the contract emits a final event, disables itself, and locks supply at 462,500 SANCTUM. This is the Sealing.

Phase 2 — The Reliquary & Open Court

At the Sealing, three things activate simultaneously: the Reliquary opens for redemption, the Pledge opens for borrowing, and the SANCTUM/USDC pool on Uniswap V4 — the Open Court — becomes tradable. The Wards begin charging tolls on every swap; every toll feeds the Reliquary.

The Open Court is seeded at launch with $5,000 USDC + ~28,571 SANCTUM as initial liquidity at a $0.175 listing price. This is below the Sealing-state intrinsic value of $0.2162, so arbitrage immediately closes the gap: the redemption floor at intrinsic-minus-4% is $0.2076, and any market price below that pays a profit to arbitrageurs who buy on the Open Court and surrender at the Reliquary. The listing price is a starting state, not a stable one.

Arbitrage in Phase 2

Open Court price is bounded by Reliquary intrinsic value plus tolls. The Reliquary always offers redemption at intrinsic value minus the 4% toll, so any market price below that floor is a free arbitrage:

If P_market < (1 − 4%) · V_intrinsic:
   → buy on Open Court, surrender at Reliquary, profit

Arbitrage bots close the gap immediately. In practice, the Open Court trades at or above intrinsic value minus 4%; never below.

The Wards

Ward of the Threshold

A flat 2% toll on every buy in the Open Court. Charged on the USDC paid in. Deposited directly into the Reliquary at swap time.

The Ward of the Threshold is the entry toll. When a wallet swaps USDC for SANCTUM in the Uniswap V4 pool, the hook charges 2% of the USDC paid in and routes it to the Reliquary. Reserves grow; supply is unchanged at the moment of the buy; intrinsic value rises immediately.

Buy flow (USDC → SANCTUM):
  user pays X USDC into the Open Court
  → Ward charges 2% · X
  → toll is deposited directly into the Reliquary
  → totalReserves += 0.02 · X
  → intrinsic value rises for every Keeper
  → user receives SANCTUM at the swap-after-fee rate

The toll is flat. It does not depend on how long the buyer has held SANCTUM, what wallet they're using, or how recently they last traded. Same toll for everyone, every block. The protocol does not classify Keepers; it charges entry.

The Wards

Ward of the Offering

The exit toll on Open Court sells, paid by the seller's Vigil. The patient pay the least; the panic-sell, the most. Every offering accrues to the Reliquary.

The toll by Vigil

The toll is on the USDC paid out by the swap. It is deposited directly into the Reliquary the moment the sell settles. Reserves grow; supply is unchanged at the swap; the floor monotonically rises.

The Vigil — diamond-hand clock

The Vigil is a per-wallet timestamp tracking when the wallet last sent SANCTUM out. The rules are simple:

• Buying or receiving more SANCTUM never resets the Vigil. Dollar-cost averaging is welcome; a long-term Keeper who adds to their stake does not surrender their tier.
• Any outgoing transfer resets the Vigil to now. Sells, peer-to-peer sends, and Reliquary redemptions all restart the clock.
• A fresh wallet's first receive starts its clock at zero. Moving tokens to a new wallet does not "reset" your tier upward — the new wallet begins at the same-block 6% tier and earns the lower tolls over time.

This is the protocol's defense against wallet-hop wash trading: there is no shortcut to the 1% floor toll except actually holding. Skipping the wait costs exactly 5 percentage points.

The Reliquary path

Surrendering at the Reliquary — the second sell path — carries a separate flat 4% toll, regardless of Vigil. This makes the Reliquary the natural exit for anyone with a Vigil that would price the DEX sell above 4% (a Vigil under 7 days), and the DEX the natural exit for anyone whose Vigil prices their sell at or below 4% (a Vigil over 7 days). Either path feeds the Reliquary; either path raises the floor.

Sell flow (SANCTUM → USDC, Open Court):
  user sells X SANCTUM into the pool
  → Ward charges (1% / 3% / 4% / 6%) on USDC paid out, by Vigil
  → toll is deposited directly into the Reliquary
  → totalReserves += toll · intrinsic value rises

Redeem flow (SANCTUM → USDC, Reliquary):
  user surrenders Y SANCTUM at intrinsic value
  → flat 4% toll retained by the Reliquary
  → supply: −Y (full burn)
  → reserves: −Y · V · 0.96
  → intrinsic value rises (toll keeps numerator above proportionality)

The protocol does not run a buyback. There is no auction, no slippage, no MEV exposure. The toll simply increases the numerator of the intrinsic value formula at the moment the sell settles. The Pyre remains the destination for collateral from broken Pledges — see The Pledge.

The Pledge

The Pledge & The Pyre

A Pledge is a time-bound loan against locked SANCTUM. Borrow at 99% of intrinsic value as USDC — no oracle, no liquidation. Honor the vow before expiry, or the locked stake is consumed by the Pyre.

Mechanics

To Pledge, a Keeper locks a quantity of SANCTUM as collateral and receives USDC at 99% of the collateral's current intrinsic value. The borrower is charged a 1% origination toll, deducted from the principal at issuance. The toll feeds the Reliquary.

The protocol enforces a global cap: no more than 50% of the vault's total reserves can be lent at any moment. This bounds the protocol's exposure to defaulted vows in aggregate and ensures redemptions remain feasible at any time.

Vow Lifecycle

A Pledge progresses through three states:

1. Open — borrower has locked SANCTUM, holds USDC, and has time on the clock. The borrower can repay at any moment to close the Pledge and reclaim collateral. A flashClose path lets the borrower atomically repay using the collateral itself within a single transaction — useful for unwinding leverage loops.
2. Honored — the borrower repays principal before expiry; collateral is unlocked and returned.
3. Defaulted — expiry passes without repayment. The locked SANCTUM is no longer redeemable by the borrower; on the next burn cycle, it is consumed by the Pyre.

Default & The Pyre

Default is not punishment. The borrower walks away with the borrowed USDC; the protocol consumes the collateral. From the protocol's perspective, default is a structurally identical event to a redemption with the toll set to 100%: SANCTUM is permanently removed from supply, the reserves were already spent against the loan, and the floor rises for every remaining Keeper.

99% LTV at intrinsic value works because the math is permissive. Every dollar of SANCTUM the borrower pledges is fully backed by the Reliquary's USDC; lending against it at 99% (minus a 1% origination toll) carries no protocol risk and leaves a thin solvency margin. If the borrower honors the vow, the Pledge closes cleanly and the toll has accrued. If they default, the protocol gains supply contraction equivalent to the loan principal — and the global 50% cap ensures total outstanding loans never exceed the reserves available for redemption.

Mathematics

Intrinsic Value

The floor — and the only price the Reliquary will mint or redeem at.

V_intrinsic = Total USDC Reserves  ÷  Total SANCTUM Supply

This single ratio defines the protocol. Every operation is evaluated against it. Every guarantee derives from it.

The Foundry Curve

During Phase 1, the mint price is set by a deterministic exponential curve in current supply. The contract is the canonical reference; the published shape is:

mint_price(S) = $0.10 × 20^{(S / K)}

At supply zero, the price is $0.10. As cumulative buy-in approaches the $100,000 cap, the price climbs to roughly $2.00. Final supply is 462,500 SANCTUM. The curve permanently disables at that point.

The curve premium is the mint fee. There is no separate mint toll; later forgers pay more than earlier forgers, and the spread feeds the Reliquary directly. At the Sealing, intrinsic value is $0.2162 — the average curve price weighted by buy-in across the full $100K cap. (Intrinsic = reserves / supply = $100,000 / 462,500.)

Why It Only Goes Up

Intrinsic value V is a strictly non-decreasing function of time, given the protocol's invariants:

• Phase 1 forge: reserves += deposit, supply += deposit / mint_price(S). Each subsequent forge happens at a price above prior intrinsic value; reserves rise faster than the proportional supply increase. Result: V strictly increases.
• Phase 2 buy (Open Court): reserves += toll (2% of USDC paid in), supply unchanged at the moment of the swap. Result: V strictly increases.
• Phase 2 sell (Open Court): reserves += toll (1%, 3%, 4%, or 6% of USDC paid out, by seller's Vigil), supply unchanged at the moment of the swap. Result: V strictly increases.
• Phase 2 surrender (Reliquary): reserves −= payout, supply −= burned. The 4% toll remains as reserves; reserves fall by less than the proportional supply decrease. Result: V strictly increases.
• Phase 2 borrow (Pledge): reserves += origination toll (1% of principal). Loan principal is held against locked SANCTUM, not removed from reserves accounting. Result: V strictly increases.
• Default (Pyre burn): reserves unchanged from default itself (loan principal already disbursed); supply −= burned. Result: V strictly increases.
• Idle: reserves and supply both unchanged. Result: V constant.

There is no operation in the protocol that decreases V. The floor is monotone non-decreasing by construction.

Worked Examples — Phase 1 trajectory

Worked Examples — Phase 2 (post-Sealing)

Every interaction strengthens the floor. There is no row in either table where V can fall.

Tokenomics

Tokenomics

Token properties and fee schedule. SANCTUM is a clean ERC-20; the protocol's tolls live in the Foundry, the Reliquary, and the V4 Wards — never in transfer hooks. Every fee feeds the Reliquary.

Token Properties

Fee Schedule

Every fee feeds the Reliquary. Default burns are pure supply contraction. The V4 LP fee (0.3%) accrues to liquidity providers in the standard V4 manner; the Wards do not touch it.

Stewardship

The Order & The Renouncement

The Order is the team behind the protocol. It holds no token allocation. After Phase 2 stabilizes, it walks away — permanently.

The Order is the team that designs, deploys, audits, and integrates SANCTUM. It participates in Phase 1 at the curve, the same contract and same prices as any other Keeper. Specifically: the Order seeds the curve with $25,000 at the opening (acquiring ~186,500 SANCTUM at the earliest, cheapest section of the curve), and seeds the launch DEX pool with $5,000 USDC + ~28,571 SANCTUM at $0.175 listing price. Total Order outlay: $30,000. No allocation is minted outside the curve. No tokens are created from thin air. The public mints fill the remaining $75,000 of the Phase-1 cap.

The Order does not control balances. It cannot mint SANCTUM (the Foundry seals at the cap; even before the Sealing, the curve is the only path). It cannot burn SANCTUM (the Reliquary burns only on surrender or default). The contracts have no pause function and no mutable fees.

The Renouncement

After Phase 2 stabilizes — once the Open Court is liquid, the redemption path is exercised, and the Pledge market has cycled through its first vows — ownership of the protocol's contracts is permanently surrendered. The owner address is set to 0x…dEaD. From that moment forward, no privileged caller exists. The contract is the contract.

The on-chain view operatorRenounced() returns true after this transition. Anyone can verify the renounced state at any time, directly on Etherscan, without trusting the Order's word.

Provenance

Every contract in the protocol carries an immutable GENESIS_BLOCK and GENESIS_HASH set at deploy. These pin the deployment to a specific Ethereum state and let any reader confirm the contracts at the canonical addresses match the canonical genesis — a permanent provenance anchor that cannot be falsified post-hoc.

Reference

Risks & Disclosures

SANCTUM is experimental decentralized protocol software. All capital deployed is at risk of total loss.

Categories of risk

• Smart contract risk. Audited code can still contain bugs. A previously-undiscovered vulnerability in the Foundry, the Reliquary, the Wards, the Pledge, or any integration could result in partial or total loss of reserves.
• Phase-1 cap risk. The Foundry is a single open round with a fixed cap. Forging happens at curve prices that climb continuously; later forgers pay materially more than earlier ones. Nothing about the curve, the cap, or the Sealing is reversible. If you do not understand the curve mechanics, do not participate.
• Leverage & flash-close risk. Users who lever up via Pledge loops carry the equivalent of liquidation-style risk: if the open Pledge is not honored or unwound before expiry, the locked SANCTUM is consumed by the Pyre. There is no liquidation curve, no margin call, and no warning. The clock is the only trigger.
• Pledge expiry risk. If you forget to honor a Pledge before its expiry, your collateral is consumed by the Pyre. There is no grace period and no recovery.
• Open Court divergence. Market price on Uniswap V4 can deviate above intrinsic value freely; below it, arbitrage caps the deviation at the redemption toll. The floor is a redemption guarantee at the Reliquary; the Open Court price is not.
• Oracle & sequencer risk. The protocol does not use price oracles, but it depends on Ethereum mainnet block production. Extended chain halts or reorgs can interfere with time-bound Pledges.
• Post-Renouncement immutability. Once the Renouncement is executed, the protocol becomes irreversible. There is no upgrade path, no governance lever, no admin function. A bug discovered after the Renouncement cannot be patched on-chain. This is by design — but you should weigh that design against the risk of permanent code.
• Regulatory risk. The legal status of reserve-backed tokens is jurisdiction-specific and evolving. The Order accepts no responsibility for participants' legal exposure.
• Counterparty / integration risk. Bridges, frontends, wallets, and exchanges that integrate SANCTUM are independent of the Order and their failures are outside the protocol's invariants.
• Total-loss possibility. All capital you commit may be lost. Do not commit more than you can afford to lose.

Reference

Contracts

Verified contract addresses will be inscribed here on deployment.

Audit reports will be inscribed alongside the contracts on deployment.

Reference

Frequently Asked

Answers to the questions Keepers most often ask.

Why can the floor not fall?

Because every protocol operation either grows reserves, shrinks supply, or leaves both unchanged. After the Sealing, supply is capped at 462,500 SANCTUM and can only shrink — through surrenders at the Reliquary (4% toll) and defaults at the Pyre. The intrinsic value formula V = reserves / supply is therefore monotone non-decreasing. See Mathematics for the operational proof.

What is the Foundry?

The Foundry is the one-shot bonding-curve mint that runs only during Phase 1. It is the only path through which SANCTUM enters circulation. Mint price climbs from $0.10 at supply zero to roughly $2.00 at the moment $100,000 of cumulative buy-in is reached. At that moment — the Sealing — the contract permanently disables itself and routes all reserves into the Reliquary.

What happens when the cap fills?

The Sealing happens. The supply cap is permanently set at 462,500 SANCTUM — the absolute ceiling, never exceeded. The Foundry pauses at the cap. Any subsequent reopen is gated by specific on-chain conditions and only ever refills SANCTUM that has burned, never mints past the cap. The Reliquary opens for redemption (4% toll), the Pledge opens for borrowing (99% LTV, 1% origination), and the SANCTUM/USDC pool on Uniswap V4 — the Open Court — becomes tradable. From that moment forward: net deflationary. The floor only rises.

Does the team get an allocation?

No allocation is minted outside the bonding curve. The Order participates in Phase 1 by paying the curve price like any other Keeper — specifically, $25,000 of curve participation at the opening (acquiring ~186,500 SANCTUM at the earliest, cheapest section of the curve) and $5,000 USDC + ~28,571 SANCTUM seeded into the launch DEX pool. Public participation fills the remaining ~$75,000 of the cap. There is no separate allocation, no priority window outside the curve, no discount, no vesting against future supply, and no minting from thin air. See Stewardship for the full disclosure.

What is the Vigil?

The Vigil is the holder's clock — the time since your wallet last sent SANCTUM out. The Ward of the Offering charges sells by Vigil: same block 6%, under 7 days 4%, 7–14 days 3%, 14 days or more 1%. Receiving more SANCTUM (a buy, an LP exit, a P2P receive) never resets your Vigil. Only outgoing transfers — a sell, a P2P send, a Reliquary surrender — reset it to now. Moving tokens to a fresh wallet starts that wallet's Vigil at zero, so it pays the 6% same-block toll on its first sell. There is no shortcut to the 1% floor toll except actually holding.

What if every Keeper surrenders at once?

Each redemption pays out at intrinsic value minus the 4% toll. The Reliquary scales 1:1 with redemptions because supply burns alongside the reserve drain — the protocol cannot become insolvent. The last Keeper to surrender is paid in proportion to their share of the remaining supply, at a floor that has been rising the entire time.

What if the Open Court price drops below intrinsic value?

It can, transiently. As soon as the gap exceeds the 4% redemption toll, arbitrageurs buy on the Open Court and surrender at the Reliquary for risk-free profit, closing the gap. The floor — defined as the Reliquary's redemption price — is unaffected.

Why 99% LTV?

Because the math is permissive. SANCTUM is fully backed by USDC at the Reliquary; lending USDC against locked SANCTUM at 99% of intrinsic value leaves a thin solvency margin while carrying no protocol-level risk. The borrower pays a 1% origination toll into the Reliquary at issuance. The total of all open Pledges is capped at 50% of vault reserves at any moment.

Why no oracle and no liquidation?

Because both add complexity and attack surface without serving the protocol's invariants. A Pledge is a time-bound vow against an asset whose floor is on-chain visible. The borrower either honors the vow, or the protocol consumes the collateral. No price feed is required.

What does the Renouncement mean?

After Phase 2 stabilizes, ownership of the protocol's contracts is permanently transferred to the dead address. From that moment forward, no privileged caller exists — no party can change a parameter, route a treasury, or alter the protocol in any way. The contract is the contract. The on-chain view operatorRenounced() returns true after this transition.

How do I participate?

During Phase 1: forge SANCTUM at the Foundry by paying the curve price in USDC. During Phase 2: trade on the Open Court (Uniswap V4 SANCTUM/USDC), surrender at the Reliquary for redemption at the floor, or Pledge — lock SANCTUM as collateral and receive USDC at intrinsic value.