4.5 KiB
| type | title | author | url | date | domain | format | status | tags | event_type | |||||
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| source | Futardio: Should Sanctum use up to 2.5M CLOUD to incentivise INF-SOL liquidity via Kamino Vaults? | futard.io | https://www.futard.io/proposal/6mc1Fp6ds8XKA2jMzBDDhVwvY6ZCGg6SNqvHy4E6LS7Q | 2025-03-05 | internet-finance | data | unprocessed |
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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
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.
without jupSOL, outperformance is even more significant:
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:
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).
Source: Kamino INF-SOL vault (Kamino | Solana Concentrated Liquidity Layer)
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