Since early 2024, Infinity has been the liquidity backbone powering the Solana liquid staking ecosystem, making it possible for over 1,000 LSTs to launch and for liquid staking to grow from under 4% of SOL supply to nearly 10%. It has helped mega brands like Jupiter, Bybit, and MoonPay launch and scale LSTs at minimal cost, and served as a DeFi safe-haven asset during market chaos (even stabilized LST depegs), all while providing INF holders industry-leading SOL yields.
All of this, it has done acting largely as an open, reliable public good. And now, it’s just become even better.
We’re excited to announce the launch of Infinity V2, an upgrade that brings smoother, more consistent yields for INF holders, smarter, more efficient liquidity provisioning for partners who rely on it, and does so while improving Infinity’s long-term sustainability.
Marking a Solana first, Infinity is now the only Solana LST to distribute yield continuously at the slot level (meaning earnings every second!).
Here’s everything you need to know.
For Users - Better Yield
INF’s yield edge comes from trading activity fees (more on this), which means its APY could spike dramatically in certain epochs, like the October 10 market crash, during which INF notched a 26% epoch return.
While exciting in the moment, the spikes mean that INF has had suboptimal yield consistency across epochs. They have also been causing INF’s true returns to be misrepresented to users. Most DeFi venues, when reporting APYs, aren’t using proper averages; instead, they’re using median APY. Ultimately, this results in users not seeing INF’s true performance and it looking less attractive to those considering holding it.
To resolve this, we’ve implemented a Solana-first for LSTs.
Continuous Smooth Yield
On Solana, staking rewards are reflected only when an epoch ends, meaning yield updates in discrete two-day intervals (the approximate length of one epoch).
Infinity V2 changes this. INF is now the first and only Solana LST to distribute yield continuously every slot, the smallest unit of time on Solana.
This creates a continuous stream of yield rather than periodic jumps every two days. Rewards update in real time, enabling more precise compounding and smoother performance visibility.
On top of this continuous distribution mechanism, Infinity V2 introduces yield smoothing.
Captured trading fees are redistributed across multiple epochs rather than being concentrated in a single distribution window. If an unusually high performance epoch occurs, that excess return is gradually spread out to create a higher-for-longer yield profile instead of a temporary spike.
Alongside yield smoothing, INF V2 introduces an optimized portfolio allocation designed to maximize yield from core holdings, further strengthening INF's APY for holders.
Together, these upgrades deliver:
- More consistent epoch-to-epoch performance
- A higher median APY over time
- Reduced volatility in yield reporting
- Stronger collateral characteristics for use in products like Kamino and Jupiter Lend, where returns can compound without the introduction of unwanted volatility.
For Partners - More Reliable Liquidity
Infinity V2 better ensures that, as INF grows, we will provide more and better SOL liquidity for our LST partners.
LSTs that rely on Infinity for liquidity will now benefit from a dynamic fee structure designed around efficiency and scale. Instead of static fees, V2 enables partner-optimized economics that adapt to market conditions, helping maintain healthy liquidity across all supported LSTs.
Notably, swap fees for Sanctum partner LSTs will be adjusted to roughly ~10bps, while non-partner LSTs will pay approximately 5x more. This means holders of our partner’s LSTs (for example, JupSOL, dSOL and many more) will get priority access to the SOL liquidity inside INF, translating to better liquidity for their LST more often.
Overall, our partners are getting deeper liquidity, better pricing, and more predictable flow.
Built For The Long Term
With V2, we're implementing a performance fee (5% of APY) designed to fund continued product development and ensure its long-term sustainability as the liquidity layer for all Solana LSTs.
Infinity V2 is now live.
Explore it at sanctum.so/infinity and follow @sanctumso for updates as we continue to build!