This opportunity works well for investors who want long exposure to SOL, while earning yield from an independent and 0-fee validator.
Risks include Sanctum's smart contract risks and the validator (Kuma) keeping high uptime for its services. Sanctum powers the technology to issue a liquid token and the contract is managed by a 6/11 multi-sig. Kuma needs to keep a high uptime to consistently generate yield.
Yield comes from new SOL coins earned by validators for producing new blocks, transaction fees paid by all Solana users, and from a special boost where the Solana foundation is a depositor in this pool but foregoes all yield to other depositors.