---
type: claim
claim_id: internet-finance-sanctum-15-percent-apy-standard
title: Sanctum claims 15% APY is industry standard for incentivized liquidity provision on Solana
description: According to Sanctum's governance proposal, 15% APY (combining organic fees and token incentives) represents the industry standard target for incentivized liquidity pools on Solana DeFi protocols.
domains:
  - internet-finance
tags:
  - solana
  - liquidity-provision
  - token-incentives
  - apy
confidence: experimental
status: active
created: 2025-03-12
modified: 2025-03-12
---

# Claim

Sanctum claims 15% APY is industry standard for incentivized liquidity provision on Solana.

# Context

This claim originates from a Sanctum governance proposal advocating for liquidity incentives for the INF-SOL pool. As a governance proposal, this is an advocacy document designed to justify spending decisions rather than neutral research.

The 15% APY figure represents combined organic trading fees plus token emissions. The actual token emission rate required depends heavily on organic fee generation - a pool generating 5% in fees would need 10% in incentives, while a pool with only 1% in fees would require 14% in incentives to reach the 15% target.

# Evidence

From the Sanctum governance proposal:

> "The industry standard for incentivised liquidity is around 15% APY. This is a combination of organic fees and token incentives."

The proposal uses this assertion to justify their requested incentive budget for the INF-SOL pool.

# Limitations

- This is Sanctum's assertion in a governance proposal, not verified industry data
- No comparative data from multiple Solana DeFi protocols is provided
- Single source (advocacy document) rather than independent research
- The breakdown between organic fees and required incentives is not specified
- No timeframe or methodology for determining this "standard" is provided

# Relevant Notes

- [[kamino-vaults-capture-95-percent-of-solana-lst-sol-liquidity-because-users-require-automated-position-management]]
- [[inf-sol-kamino-vault-outperformed-inf-hodl-through-high-trading-volume-relative-to-tvl]]

# Topics

- [[solana]]