---
type: source
title: "Futardio: Should Sanctum use up to 2.5M CLOUD to incentivise INF-SOL liquidity via Kamino Vaults?"
author: "futard.io"
url: "https://www.futard.io/proposal/6mc1Fp6ds8XKA2jMzBDDhVwvY6ZCGg6SNqvHy4E6LS7Q"
date: 2025-03-05
domain: internet-finance
format: data
status: unprocessed
tags: [futardio, metadao, futarchy, solana, governance]
event_type: proposal
---

## Proposal Details
- Project: Sanctum
- Proposal: Should Sanctum use up to 2.5M CLOUD to incentivise INF-SOL liquidity via Kamino Vaults?
- Status: Passed
- Created: 2025-03-05
- URL: https://www.futard.io/proposal/6mc1Fp6ds8XKA2jMzBDDhVwvY6ZCGg6SNqvHy4E6LS7Q
- Description: INF has been one of the best SOL-based assets for a long time now. It just slightly underperforms the best available LST on the market but outperforms the two most popular LSTs on Solana, mSOL and jitoSOL.
- Discussion: https://research.sanctum.so/t/cloud-003-should-sanctum-use-up-to-2-5m-cloud-to-incentivise-inf-sol-liquidity-via-kamino-vaults

## Summary

### 🎯 Key Points
The proposal aims to incentivize INF-SOL liquidity using up to 2.5M CLOUD by offering liquidity providers a higher initial yield of 20%, transitioning to 15% thereafter, to deepen the liquidity pool via Kamino Vaults.

### 📊 Impact Analysis
#### 👥 Stakeholder Impact
Liquidity providers (LPs) stand to benefit from enhanced yields, fostering greater participation in the INF-SOL market.

#### 📈 Upside Potential
Increasing liquidity could position INF as a leading liquidity hub for LSTs on Solana, attracting larger depositors and enhancing market stability.

#### 📉 Risk Factors
The proposal carries the risk that the necessary liquidity may not be achieved, potentially leading to underperformance compared to established alternatives.

## Content

![image](https://canada1.discourse-cdn.com/flex003/uploads/sanctum/optimized/1X/b71bad7de5e560a2eb822629c55defcf6295658e_2_1380x776.jpeg)

INF has been one of the best SOL-based assets for a long time now. It just slightly underperforms the best available LST on the market but outperforms the two most popular LSTs on Solana, mSOL and jitoSOL.


![image](https://canada1.discourse-cdn.com/flex003/uploads/sanctum/original/1X/0699fb891e93c88e80d9aad743ba4461c4a1723f.png)

without jupSOL, outperformance is even more significant:


![image](https://canada1.discourse-cdn.com/flex003/uploads/sanctum/original/1X/8aabfceb083b93938f965ca1f860ca33b9d4331a.png)

Despite INF’s strong performance, the INF-SOL liquidity isn’t deep enough currently. This is a concern for large depositors who wish to exit INF in size. Additionally, If INF is to become the liquidity nexus of Solana for all LSTs, it will require a deep pool of SOL native liquidity. We therefore wish to grow SOL native liquidity by incentivising INF-SOL Kamino vaults.

Why Kamino vaults? More than 95% of existing xSOL-SOL liquidity on AMMs comes from Kamino managed vaults which suggests that users aren’t keen to provide liquidity unless their positions are managed by a third-party, and automatically rebalanced. See for example this Orca jitoSOL-SOL liquidity diagram:


![image](https://canada1.discourse-cdn.com/flex003/uploads/sanctum/original/1X/082472042ec958dcd4e39e75bf7b1e4bd06a092c.png)

The INF-SOL Kamino vault strategy has been a great place to park your INF. In fact, the INF-SOL vault has outperformed a 100% INF HODL strategy, most likely because of the very high capital velocity (high trading volume relative to TVL).


![image](https://canada1.discourse-cdn.com/flex003/uploads/sanctum/original/1X/85049c0b689f68c42d0e1da43c3c1ddb60946bc4.png)

Source: Kamino INF-SOL vault [(Kamino | Solana Concentrated Liquidity Layer)](https://app.kamino.finance/liquidity/Eud3oi6ibDdYyE5UoeaSWH3vttsuSU4ikHc5oY2E9831)

The industry standard is to offer LPs a 15% combined (fees + incentives combined) annual yield. To incentivise initial liquidity even more, we propose to offer LPs a 20% yield for the first month, then dropping to 15% henceforth. Depending on TVL increase/decrease and price of CLOUD, the Kamino team will be in charge of guaranteeing a 15% APY on up to $2.5M TVL, or until 2.5M CLOUD is exhausted, whichever comes first.
Assuming the $2.5M TVL cap is reached, incentives should last 6 months at least.

## Raw Data

- Proposal account: `6mc1Fp6ds8XKA2jMzBDDhVwvY6ZCGg6SNqvHy4E6LS7Q`
- Proposal number: 4
- DAO account: `5n61x4BeVvvRMcYBMaorhu1MaZDViYw6HghE8gwLCvPR`
- Proposer: `proPaC9tVZEsmgDtNhx15e7nSpoojtPD3H9h4GqSqB2`
- Autocrat version: 0.3
- Completed: 2025-03-08
- Ended: 2025-03-08
