Pricing Mechanism of Infinity
There is an infallible on-chain oracle that tells us the floor price of every LST. The price of every LST can simply be read off the account itself — the ratio of totalLamports to poolTokenSupply.
Here’s an example from BlazeStake:
In this case, dividing totalLamports by poolTokenSupply gives us 1.1084.
This ratio can be thought of as a floor price of the LST. The token accrues staking rewards over the epoch, so totalLamports will go up at the start of the new epoch.
Because every LST can be priced relative to the SOL numeraire, the ratio method will work for every pairwise swap. This allows us to fairly price every asset pair. That is how we can support all LSTs at once.
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