Solana news: Sanctum’s $INF Outperforms Solana LSTs with 8.2% Higher APY Post V2 Upgrade
Sanctum $INF’s Yield Advantage Explained
Sanctum’s $INF liquid staking token (LST) has demonstrated a notable yield advantage since its V2 upgrade, delivering an average annual percentage yield (APY) 8.2% higher than the Solana network median across all LSTs over the past ten weeks. Onchain data shows $INF’s average APY at 6.28%, approximately 0.48 percentage points above the median, offering holders a clear competitive edge.
How $INF Maintains Higher Yields
- Infinity pool swap fees supplement staking rewards
- Consistent outperformance during periods of high network activity
- Empirical data supports sustained yield advantage
Unlike many Solana LSTs that rely solely on staking rewards, $INF benefits from additional value flows such as swap fees from its Infinity pool. This structure allows $INF to maintain and even widen its yield gap, particularly during times of increased network usage.
Potential Impact of Solana Tokenomics Changes
Proposed changes to Solana’s tokenomics, such as those outlined in SIMD-0441, aim to accelerate the reduction of $SOL emissions. This would lower nominal yields for all LSTs, but tokens like $INF, with supplementary value sources, could see their relative advantage increase further.
Tax Efficiency Considerations
While tax treatment varies by jurisdiction, LSTs like $INF may offer more straightforward tax implications compared to native staking, as rewards accrue to the token’s value rather than being distributed as new tokens. UK investors should consult local tax guidance for specifics.
Why This Matters for the UK Solana Community
With the UK’s growing interest in DeFi and liquid staking, Sanctum’s $INF performance highlights the importance of evaluating LST options for yield optimisation. UK users and builders can monitor such trends to inform staking strategies and product development within the Solana ecosystem.
Current TVL and Market Context
Despite broader DeFi market challenges, Sanctum’s total value locked (TVL) in $SOL terms remains at all-time highs, reflecting sustained user confidence and interest in yield-generating products on Solana.
