scnSOL will become Infinity
tl;dr: We are upgrading scnSOL to become INF, Sanctum Infinity Pool. This will increase the capital efficiency and APY of the pool. No action is required from existing stakers, who may withdraw their SOL at any time.
We plan to make the change on the 4th of March, 2024.
As previously announced, Socean Stake Pool is coming under the Sanctum umbrella.
We are upgrading the Socean Stake Pool (scnSOL) to become the Sanctum Infinity Pool (INF). The upgrade will increase the capital efficiency and APY of the pool, and kickstart the infinite-LST future (see introducing Infinity: enabling the infinite-LST future for details).
Don’t worry! If you’re holding scnSOL in your wallet, it will convert 1-to-1 into INF; you don’t have to do anything.
As always, the safety of users’ funds is our utmost priority. The new program has been audited three times by Neodyme, OtterSec and Sec3, with all issues remediated.
All funds will stay in the pool and no action is needed from existing stakers, but existing stakers can withdraw their funds at any time from unstake.sanctum.so.
scnSOL —> INF migration details
The migration will take place on 4th March, 2024.
The migration process will not change the price of the token nor the SOL you are entitled to. If you had 100 staked SOL worth of scnSOL before the migration, you will still have 100 staked SOL worth of INF after the migration. Stakers will be able to withdraw their funds at any time from unstake.sanctum.so apart from a short period of time during the migration (to be announced on Twitter).
We have let Pyth know about the migration and they stand ready to transition the feed once we go live. Partners who rely on the Pyth feed for scnSOL will need to migrate their feed. We have made an effort to contact all our partners and will continue to reach out.
After the migration has been completed, we will start to wind down the socean.fi website and redirect all users to sanctum.so.
Infinity delegation strategy V0 — March 2024
Our two main objectives are to kickstart the infinite-LST future and to provide good yields to INF holders. It is important to strike a balance between the two. Here is a proposed “v0” strategy for Infinity: this can and will change over time. We plan to run this v0 delegation strategy for one month, learn from it and take suggestions, then improve upon it.
We plan for Infinity to be able to service the majority of LST trading volume. To that end, Infinity must have good returns so that it can stand alone as an attractive option. We do not want Infinity to have to rely on aggressive LM rewards -- some may be acceptable to bootstrap it at the start, but certainly not in the long term.
20%: new LSTs
Objective: to incentivise the creation of new LSTs and kickstart the infinite-LST future
20% of Infinity will be delegated to new whitelisted LSTs.
1,000 SOL minimum delegation (minimum delegation may dip below 1,000 SOL if Infinity TVL is low)
The rest of the 20% will be delegated equally to all new LSTs, weighted proportionally by APY over the last 3 epochs.
80%: basket of LSTs + trading returns
Objective: to provide diversified staking yields + maximise trading volumes, to result in an overall strong APY.
For now, target allocation will be directly weighted by TVL. We operate under the assumption that trading volume is proportional to size. We are well aware that trading volume naturally has a centralising effect, so it's important for us to take this into account. If a new, small LST has a lot of trading volume, we can rebalance to better service that.
Future versions of the delegation strategy will adjust for APY and may also consider an adjustment to overweight smaller LSTs.
Sanctum Partner Program: Onboarding new LSTs onto Infinity
There has been a lot of demand from various projects and validators to set up new LSTs. Sanctum will be launching a partner program to onboard new LSTs shortly. This will be delegated to Sanctum stakeholders in the future when Sanctum becomes sufficiently decentralised.
At the moment, all new LSTs must meet the following criteria:
Run one of the following programs:
SPL stake-pool program (program id:
SPoo1Ku8WFXoNDMHPsrGSTSG1Y47rzgn41SLUNakuHy)Sanctum SPL stake-pool program (program id:
SP12tWFxD9oJsVWNavTTBZvMbA6gkAmxtVgxdqvyvhY)Single-validator stake pool program (to be deployed)
have a concrete strategy to attract stake to your LST, to convert existing native stake to your LST, and have a unique and differentiated utility for stakers.
Planned future features
LST score weighting: Unlike validators, new LSTs have multiple (sometimes hundreds) of validators within them, and allocation changes every epoch. We are actively working with strong members in the space to come up with a composite score for every LST.
Infinity Locking/Voting (tentative): keep your Infinity in your wallet (or lock it up) to vote on where you want your stake to go
Withdrawing your scnSOL
If you would like to withdraw your scnSOL before the update, you can do it any time at unstake.sanctum.so.
Conclusion
We’re excited to upgrade scnSOL into Infinity, a move which will mark a sea change in liquid staking on Solana. With Infinity we’re taking one big step in advancing the infinite-LST future.
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