---
type: claim
claim_id: internet-finance-inf-sol-vault-outperformance
title: INF-SOL Kamino vault outperformed INF hodl, attributed to high trading volume relative to TVL
description: The INF-SOL concentrated liquidity vault on Kamino outperformed simply holding INF tokens, with the proposal attributing this to high trading volume relative to total value locked generating fee income that exceeded impermanent loss.
domains:
  - internet-finance
tags:
  - solana
  - kamino
  - liquidity-provision
  - inf
  - vault-performance
confidence: experimental
status: active
created: 2025-03-12
modified: 2025-03-12
---

# Claim

INF-SOL Kamino vault outperformed INF hodl, attributed to high trading volume relative to TVL.

# 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 proposal presents this outperformance as evidence that concentrated liquidity provision can be profitable when volume-to-TVL ratios are high enough that fee generation exceeds impermanent loss.

# Evidence

From the Sanctum governance proposal:

> "The INF-SOL Kamino vault has outperformed holding INF. This is most likely because of the high trading volume relative to TVL."

The proposal uses this observation to argue that the INF-SOL pool is particularly well-suited for liquidity incentives due to its favorable volume dynamics.

# Limitations

- Single source (governance proposal/advocacy document) rather than independent analysis
- Causal attribution to volume/TVL ratio is speculative ("most likely because")
- No specific performance metrics, timeframe, or comparison methodology provided
- No data on actual fee generation vs impermanent loss breakdown
- Vault performance could be influenced by other factors (rebalancing strategy, market conditions, token price correlation)
- No comparison with other LST-SOL vaults or alternative strategies

# Relevant Notes

- [[sanctum-claims-15-percent-apy-is-industry-standard-for-incentivized-liquidity-provision-on-solana]]
- [[kamino-vaults-capture-95-percent-of-solana-lst-sol-liquidity-because-users-require-automated-position-management]]

# Topics

- [[solana]]