Sanctum launches the new generation of LSTs
Last updated
Last updated
tl;dr:
we have worked with some of the best projects to launch six new LSTs
these LSTs take no (zero, nada, zilch) fees
our site goes live on Monday and you’ll be able to convert your stake accounts to these LSTs
jupiter (and infSOL) integration coming soon
As we wrote in our post
introducing Infinity: enabling the infinite-LST future
Why validator LSTs? Solana has so many stake accounts that the network comes to a halt temporarily at the start of every epoch to calculate staking rewards for each stake account. Validator LSTs greatly decrease the number of stake accounts and make Solana faster. In addition, validator LSTs are fully transferrable and composable SPL tokens, allowing them to be used in all of DeFi.
Validator LSTs open up a lot more possibilities. With LSTs, projects can run multiple validators under a single validator LST (e.g. Bonk1 and Bonk2 validators), increasing security and decentralisation without fragmenting or confusing their stakers. They can run incentive or loyalty programs: Laine just airdropped block rewards and priority fees to laineSOL holders which has resulted in >100% APY to laineSOL holders. Finally, projects can easily airdrop tokens or NFTs to people who hold enough of their LST.
Finally, validator LSTs provide a much better user experience than native stake accounts do. You can easily use Sanctum or Jupiter to go from any token to an LST and vice-versa (USDC ←→ xSOL) instantly, rather than having to deactivate the stake account, wait one epoch, remember to claim it… etc.
In alphabetical order, the new LSTs are:
bonk’s bonkSOL
solana compass’ compassSOL
cogentcrypto’s cgntSOL (existing)
drift’s dSOL
juicystake’s jucySOL
laine’s laineSOL (existing)
lode’s pwrSOL
superfast’ superSOL
We chose these projects to work with because they are the best of the best, with a documented history of significant and tireless contributions to Solana. These LSTs will all be able to enjoy deep liquidity from day 1 thanks to Sanctum’s Reserve Pool, which has over 200k SOL available to support instant unstakes. So you can be assured that you can instant unstake to get your SOL back any time.
Our website goes live on Monday and you’ll be able to convert your existing stake accounts to these LSTs then — stay tuned!
We believe that these new LSTs will greatly improve liquid staking on Solana. They represent a significant UX improvement, make the network faster, and open up exciting new possibilities for projects.
We are working towards a future where all SOL is liquid staked. This is another step towards a brighter, more liquid future on Solana.
