Sanctum’s $INF Yields 8.2% Higher APY than Solana Network Median Since V2 Upgrade

In the 10 weeks that have passed since its launch, Sanctum’s v2 $INF has delivered on its ambitious promises and empirically solidified itself as Solana’s best LST for yield generation.

Onchain data suggests that average APY on Sanctum’s $INF was approximately 0.48% higher than the network median across all LSTs, giving holders a competitive 8.2% relative edge over other stakers.

Upcoming changes to $SOL tokenomics could play into Sanctum’s favor, with unique value adds like the Infinity pool’s swap fees growing $INF’s yield gap over rivals.

Sanctum’s INF v2 Delivers on Promised Performance

Like many of Solana’s leading LSTs, Sanctum’s $INF aims to deliver optimized rewards, edging out the nominal yield rate to outperform the market and pass greater value onto holders. Unlike many of Solana’s LST operators, Sanctum has delivered on these promises, with onchain data demonstrating $INF’s quantifiable edges over rivals.

According to a recent blog article reviewing $INF v2’s performance in its first two months, data suggests that $INF has consistently delivered more yield to holders than its competitors.

In the first eight weeks since launch, $INF’s average APY sat at 6.28%, representing a 0.48 percentage point increase over the average APY of the network’s median LST. Aside from a few anomalies addressed in Sanctum’s blog, $INF consistently outperforms alternative LSTs, with periods of intense network activity spiking rewards via infinity pool swap fees.

Extrapolating this edge over a longer timeframe, projected rewards indicate that holders could earn significantly higher yield on $INF than its counterparts. 

For example, holding 100 $SOL in $INF over $bnSOL is expected to reward users with an additional 1.57 $SOL in one year, marking a 24.68% difference in rewards.

$INF to Flourish Under New $SOL Tokenomics?

Potential changes to Solana’s existing tokenomics could drive the performance gap between $INF and other LSTs even wider. Amidst languishing price action, ecosystem leaders have renewed calls to reduce Solana’s current emission curve and combat inflation.

Originally submitted in Q4 2025, SIMD-0441 proposes doubling $SOL’s disinflation rate, accelerating the rate at which $SOL emissions drop to bring the network to its terminal inflation rate of 1.5% by 2029, as opposed to 2032.

Given that LSTs currently generate the bulk of their rewards through staking emissions, a decrease in issuance will drop the nominal yield rate across all LSTs. However, this allows certain LSTs with unique additional value flows, like $INF, to leverage their competitive edge and widen the yield gap over rival issuers.

Unlike most LSTs, which rely almost entirely on staking rewards, MEV capture and block rewards, $INF is further supplemented by infinity pool swap fees. In a world where nominal staking yield drops, the delta in yield generation between LSTs with additional value lows will grow even larger, making assets like $INF more attractive to holders long term.

Are LSTs More Tax-Efficient?

Beyond boosted rewards, $INF and other LSTs may be a more compelling and tax-efficient alternative to native staking, at least in the United States. Under current US tax treatment, native staking is a recurring taxable event. Revenue Ruling 2023-14 holds that staking rewards count as ordinary income at fair market value the moment a taxpayer gains control over them, whether they stake solo, delegate, or stake through an exchange.

Effectively, native stakers book taxable income every time rewards land, often well before selling a single token, and at ordinary-income rates rather than the lower long-term capital-gains rates.

LSTs, on the other hand, are much more simplistic. Because rewards accrue directly to the value of the token, the quantity you hold doesn’t change at every distribution. Because no new tokens hit the wallet, there is a credible reading under which nothing is taxed until you actually sell, confirming a capital gain or loss.

$INF’s powerful yield mechanisms have helped Sanctum maintain consistent TVL growth in the face of difficult market conditions. 

Amidst DeFi deposit flight and failing confidence in onchain markets, DefiLlama data reports that Sanctum’s $SOL denominated-TVL is hovering at all-time highs of $17.46M $SOL, valued at over $1.33B USD.

Read More on SolanaFloor

Solana’s favorite store of value goes future-proof

ORE Launches Quantum-Safe Smart Wallet

Earn Up to 8% APY on Your $SOL