Sanctum InfinityPrice

(INF)

The INF token is a yield-bearing asset representing your share in Sanctum's Infinity Pool. This pool is a multi-asset liquidity hub on Solana, comprising a diversified basket of Liquid Staking Tokens (LSTs) such as JitoSOL, mSOL, and bSOL. Essentially, holding INF grants you exposure to a collection of LSTs and their combined staking rewards, making it a unique composite asset.

Unlike a typical LST that tracks a single validator or specific pool’s performance, INF functions as an 'LST index.' It accrues rewards from the entire basket of LSTs it holds within the Infinity Pool. Additionally, INF also earns a share of the trading fees generated from LST-to-LST swaps facilitated by Sanctum's router. This dual yield mechanism and diversified LST exposure distinguish it from individual LSTs.

No, you do not need to actively claim staking rewards for INF. INF is designed as a reward-bearing token, meaning the rewards accrue directly to the token's intrinsic value. Consequently, the quantity of INF tokens in your wallet remains constant, but the underlying SOL value of each INF token progressively increases over time due to these accumulated rewards. This automatic value appreciation simplifies the reward mechanism.

The common misconception that 1 INF should equal 1 SOL arises because INF is a reward-bearing asset designed to appreciate in value against SOL. When you convert SOL into INF, you receive less than 1 INF for 1 SOL because the INF token already incorporates accumulated past rewards, making each unit of INF worth more than 1 SOL. For example, if you receive 0.92 INF for 1 SOL, upon conversion back, your 0.92 INF will be worth more than your initial 1 SOL due to the ongoing yield.

No, there is no secondary staking step required for INF. The yield accrual mechanism is integrated directly into the token's design. Simply holding INF tokens in your digital wallet is sufficient to automatically earn rewards. The value appreciation of your INF tokens, reflecting the yield from the underlying LSTs and trading fees, occurs inherently without any further action on your part.

Several risks are associated with holding INF tokens. Firstly, there is smart contract risk, meaning a potential vulnerability or bug in the Sanctum or Infinity pool's underlying code could be exploited. Secondly, LST de-pegging risk exists; if a significant LST within the Infinity Pool's basket (e.g., JitoSOL) were to lose its peg or underlying backing, it would negatively impact INF's value. Lastly, liquidity risk can emerge during periods of extreme market volatility, potentially leading to increased slippage or wider spreads when converting large quantities of INF back to SOL.