How Does Sanctum Infinity Work?

INF token — a liquid staking token that holds a diversified basket of underlying Solana LSTs (mSOL, JitoSOL, bSOL, etc.)

First-ever LST-of-LSTs. INF holds a portfolio of Solana liquid staking tokens, diversifying validator risk. Yields aggregate from all underlying LSTs. Over 3 audits (OtterSec, Sec3, Neodyme).

Direct on-chain exchange rate reads from each constituent LST's stake pool program, eliminating external oracle dependency

Instead of using AMM pricing or external oracles, Infinity reads exchange rates directly from SPL stake pool programs. This eliminates constant-product pricing but trusts each LST's reported rate.

Multi-LST swap router enabling instant swaps between any Solana LSTs at fair exchange rate without AMM slippage

Sanctum's router allows swaps between LSTs using on-chain exchange rates rather than AMM curves. Any LST in the pool can be used as the redemption path, improving exit liquidity.

Weighted basket of Solana LSTs with dynamic allocation across validators and staking protocols

INF diversifies across multiple staking protocols and validators. Reduces single-validator risk but introduces composition risk. Basket weights can be adjusted by governance.

Instant redemption via any constituent LST in the pool, avoiding unbonding periods

Unlike single-LST redemptions that may require epoch waits, INF holders can swap instantly through any liquid asset in the pool. Liquidity depends on pool depth per constituent.

If a constituent LST's stake pool reports a manipulated or inflated exchange rate, an attacker could deposit that LST into Infinity at an inflated value and drain other assets from the pool at fair rates, stealing from all INF holders.

A compromised or exploited LST in the basket (e.g., validator slashing, smart contract exploit) contaminates the entire INF pool. The diversification benefit becomes a contagion vector.

During a de-peg event for one constituent LST, arbitrageurs can swap into the depegging LST from Infinity at fair value, draining the pool of good LSTs and concentrating the pool in the impaired asset.

Exchange rate updates that lag actual validator performance could create brief mispricings. Flash loan or MEV strategies could exploit rate update timing for risk-free extraction.