![JamesHanley's tweet photo. Holders of LST Multiply positions are concerned today.
The past 24hrs put a lot of pressure on them as on-chain SOL liquidity dried up.
I spoke with an INF Multiply whale this morning. He asked what to do and I thought I'd share with you what I shared with him.
TL;DR
[*NFA*] I'd personally wait and see. Borrow rates will likely resolve down and INF's APY is likely to spike up in the coming epochs from all the extra activity on the network.
So, what happened and why are Multiply positions showing negative APY?
Flash shock demand for SOL liquidity in the past ~24 hrs caused SOL borrow rates to spike extremely high as demand for unstaked SOL shot through the roof. This put pressure on Multiply users as multiply is really a leveraged bet that an LSTs APY will be higher than the cost to borrow SOL over time. Usually high borrow rates like this don't sustain for long. Market forces - users unwinding multiply loops or traders lending SOL to capture some of the high APY - inevitably bring them back to reality. [See Image 1]
Why does INF APY seem low in recent epochs?
INF's launch on @jup_lend last week was a smashing success - INF TVL, in SOL terms, grew %22 in a little over one week.
However, INF's APY in the few epochs following tell a very different story: That INF is currently suffering from success. Why? When new traders deposit SOL into INF, it takes an epoch for that SOL to start staking (earning) inside INF. That means immediately after large deposits, the headline APY of INF can be lower. This new SOL inside INF can act as a short-term drag on APY.
Note: this isn't always the case, but more on that in a separate post. Importantly, there are upgrades in the works for INF which will mitigate this short-term SOL drag impact on INF's APY. [See Image 2 & 3]
So, what drives INF's APY and will it be high again soon?
INF's APY fluctuates but generally outperforms over-time. Due to the nature of where it's APY comes from, it tends to be higher than LST's average APY with big outlier spikes (See Image 4). You can see this in the boxplot below.
This is because INF earns the weighted average yield of the LSTs it holds PLUS extra trading fees on top. In market conditions like the past couple of days, there is a lot of swapping activity for LSTs on chain. Much of this swapping activity gets routed through INF. When these swaps are routed through INF, it earns fees. These fees show up in the APY figures in future epochs after the swap activity. What this means is, we can expect INF APY to spike up in the next epoch or two as these extra swap fees are digested by INF.
Secondly, in times of high-network activity, traders sometimes pay higher priority fees. At the same time, the extra network activity tends to result in higher MEV which tends to boost the APY of LSTs. Well, since INF is a basket of LSTs, this bump will also show up in INF's APY.
Why not just unwind INF multiply position now and then wind up again once conditions look better?
Unwinding multiply positions incurs fees - as you need to find unstaked SOL, usually by swapping, to repay the multiply loop - which can eat into the profitability of the strategy.
As noted above, the big liquidity crunch for unstaked SOL past ~24hrs could make an unwind extremely expensive due to a shortage of unstaked SOL... At least until the next epoch ticks over and INF tops up its reserves 😉👍
Finally, to get out of INF now would be to forgo all those extra fees just earned by the pool! Remember - the fees show up in the APY AFTER the trading activity takes place.
In summary
It may be worth watching and waiting an epoch or two before rushing to unwind a Multiply position. With any luck, there'll be some epochs of juiced up APY coming and borrow rates may naturally return to equilibrium.
Special shoutout to @kamino and @AllezLabs for the great INF and LST dashboards I've used here.](https://pbs.twimg.com/media/G3BmJO2bwAQ9Por.jpg)
![JamesHanley's tweet photo. Holders of LST Multiply positions are concerned today.
The past 24hrs put a lot of pressure on them as on-chain SOL liquidity dried up.
I spoke with an INF Multiply whale this morning. He asked what to do and I thought I'd share with you what I shared with him.
TL;DR
[*NFA*] I'd personally wait and see. Borrow rates will likely resolve down and INF's APY is likely to spike up in the coming epochs from all the extra activity on the network.
So, what happened and why are Multiply positions showing negative APY?
Flash shock demand for SOL liquidity in the past ~24 hrs caused SOL borrow rates to spike extremely high as demand for unstaked SOL shot through the roof. This put pressure on Multiply users as multiply is really a leveraged bet that an LSTs APY will be higher than the cost to borrow SOL over time. Usually high borrow rates like this don't sustain for long. Market forces - users unwinding multiply loops or traders lending SOL to capture some of the high APY - inevitably bring them back to reality. [See Image 1]
Why does INF APY seem low in recent epochs?
INF's launch on @jup_lend last week was a smashing success - INF TVL, in SOL terms, grew %22 in a little over one week.
However, INF's APY in the few epochs following tell a very different story: That INF is currently suffering from success. Why? When new traders deposit SOL into INF, it takes an epoch for that SOL to start staking (earning) inside INF. That means immediately after large deposits, the headline APY of INF can be lower. This new SOL inside INF can act as a short-term drag on APY.
Note: this isn't always the case, but more on that in a separate post. Importantly, there are upgrades in the works for INF which will mitigate this short-term SOL drag impact on INF's APY. [See Image 2 & 3]
So, what drives INF's APY and will it be high again soon?
INF's APY fluctuates but generally outperforms over-time. Due to the nature of where it's APY comes from, it tends to be higher than LST's average APY with big outlier spikes (See Image 4). You can see this in the boxplot below.
This is because INF earns the weighted average yield of the LSTs it holds PLUS extra trading fees on top. In market conditions like the past couple of days, there is a lot of swapping activity for LSTs on chain. Much of this swapping activity gets routed through INF. When these swaps are routed through INF, it earns fees. These fees show up in the APY figures in future epochs after the swap activity. What this means is, we can expect INF APY to spike up in the next epoch or two as these extra swap fees are digested by INF.
Secondly, in times of high-network activity, traders sometimes pay higher priority fees. At the same time, the extra network activity tends to result in higher MEV which tends to boost the APY of LSTs. Well, since INF is a basket of LSTs, this bump will also show up in INF's APY.
Why not just unwind INF multiply position now and then wind up again once conditions look better?
Unwinding multiply positions incurs fees - as you need to find unstaked SOL, usually by swapping, to repay the multiply loop - which can eat into the profitability of the strategy.
As noted above, the big liquidity crunch for unstaked SOL past ~24hrs could make an unwind extremely expensive due to a shortage of unstaked SOL... At least until the next epoch ticks over and INF tops up its reserves 😉👍
Finally, to get out of INF now would be to forgo all those extra fees just earned by the pool! Remember - the fees show up in the APY AFTER the trading activity takes place.
In summary
It may be worth watching and waiting an epoch or two before rushing to unwind a Multiply position. With any luck, there'll be some epochs of juiced up APY coming and borrow rates may naturally return to equilibrium.
Special shoutout to @kamino and @AllezLabs for the great INF and LST dashboards I've used here.](https://pbs.twimg.com/media/G3BfdfYbwAEjHCH.jpg)
![JamesHanley's tweet photo. Holders of LST Multiply positions are concerned today.
The past 24hrs put a lot of pressure on them as on-chain SOL liquidity dried up.
I spoke with an INF Multiply whale this morning. He asked what to do and I thought I'd share with you what I shared with him.
TL;DR
[*NFA*] I'd personally wait and see. Borrow rates will likely resolve down and INF's APY is likely to spike up in the coming epochs from all the extra activity on the network.
So, what happened and why are Multiply positions showing negative APY?
Flash shock demand for SOL liquidity in the past ~24 hrs caused SOL borrow rates to spike extremely high as demand for unstaked SOL shot through the roof. This put pressure on Multiply users as multiply is really a leveraged bet that an LSTs APY will be higher than the cost to borrow SOL over time. Usually high borrow rates like this don't sustain for long. Market forces - users unwinding multiply loops or traders lending SOL to capture some of the high APY - inevitably bring them back to reality. [See Image 1]
Why does INF APY seem low in recent epochs?
INF's launch on @jup_lend last week was a smashing success - INF TVL, in SOL terms, grew %22 in a little over one week.
However, INF's APY in the few epochs following tell a very different story: That INF is currently suffering from success. Why? When new traders deposit SOL into INF, it takes an epoch for that SOL to start staking (earning) inside INF. That means immediately after large deposits, the headline APY of INF can be lower. This new SOL inside INF can act as a short-term drag on APY.
Note: this isn't always the case, but more on that in a separate post. Importantly, there are upgrades in the works for INF which will mitigate this short-term SOL drag impact on INF's APY. [See Image 2 & 3]
So, what drives INF's APY and will it be high again soon?
INF's APY fluctuates but generally outperforms over-time. Due to the nature of where it's APY comes from, it tends to be higher than LST's average APY with big outlier spikes (See Image 4). You can see this in the boxplot below.
This is because INF earns the weighted average yield of the LSTs it holds PLUS extra trading fees on top. In market conditions like the past couple of days, there is a lot of swapping activity for LSTs on chain. Much of this swapping activity gets routed through INF. When these swaps are routed through INF, it earns fees. These fees show up in the APY figures in future epochs after the swap activity. What this means is, we can expect INF APY to spike up in the next epoch or two as these extra swap fees are digested by INF.
Secondly, in times of high-network activity, traders sometimes pay higher priority fees. At the same time, the extra network activity tends to result in higher MEV which tends to boost the APY of LSTs. Well, since INF is a basket of LSTs, this bump will also show up in INF's APY.
Why not just unwind INF multiply position now and then wind up again once conditions look better?
Unwinding multiply positions incurs fees - as you need to find unstaked SOL, usually by swapping, to repay the multiply loop - which can eat into the profitability of the strategy.
As noted above, the big liquidity crunch for unstaked SOL past ~24hrs could make an unwind extremely expensive due to a shortage of unstaked SOL... At least until the next epoch ticks over and INF tops up its reserves 😉👍
Finally, to get out of INF now would be to forgo all those extra fees just earned by the pool! Remember - the fees show up in the APY AFTER the trading activity takes place.
In summary
It may be worth watching and waiting an epoch or two before rushing to unwind a Multiply position. With any luck, there'll be some epochs of juiced up APY coming and borrow rates may naturally return to equilibrium.
Special shoutout to @kamino and @AllezLabs for the great INF and LST dashboards I've used here.](https://pbs.twimg.com/media/G3BedI1bwAMGV6d.png)
Olivia
Online
alkine
@alkineee
solana is home - janitor at @sanctumso
Solana
Joined May 2021
381 Following
4.2K Followers
4.7K Posts
@jahris stand strong!
(and also where can i procure some of your olive oil?)
@ExecutionVenue @jameshanley @eggpanned @sanctumso @kamino @jup_lend welp nevermind
https://t.co/5xeIcHVhHZ
Your product is so good that competitors feel the need to block it at the program level.
@kamino is openly ignoring open-finance principles by stopping users from leaving their platform via @jup_lend refinancing, all while preaching ‘transparency.’
Peak 5/10 multisig power, able to upgrade the program whenever they want. What’s next, blocking users individually?
At least their code includes a hall-of-fame mention to Jupiter lend, finally something superior in their codebase.
‘If you can’t win fairly, just change the rules, it’s easier.”
@ExecutionVenue @jameshanley @eggpanned @sanctumso @kamino @jup_lend you should ask in the jupiter discord, it will save you a lot
manually unwinding is extremely costly and eats into your profits
@ExecutionVenue @jameshanley @eggpanned @sanctumso @kamino @jup_lend no unwind costs because it uses a flashloan to repay your debt on kamino instead of your collateral
it works because INF LTV on juplend is more than INF LTV on kamino
@ExecutionVenue @jameshanley @eggpanned @sanctumso @kamino @jup_lend you can also use the new refinance tool of juplend
https://t.co/8if1S2ktpC
It’s never been easier to switch to @jup_lend
Introducing: Refinance.
Move your active borrow/lend positions from other protocols to Jupiter in just a few clicks.
Better rates, better LTVs, and zero slippage on the move.
Details 👇
@Richard_ISC @Austin_Federa @sanctumso @doublezero @JupiterExchange @DriftProtocol @soleconomist not really, stake accounts need to be deactivated before the SOL can be delegated to another validator
@jameshanley @Arnaudsh @akh1l_sol @jup_lend kamino is using a 10-epoch median for their multiply product, thus excluding very bad and very good epochs
Follow-up: INF just printed 26.12% APY this epoch.
The epoch just ticked over minutes ago and, as predicted, an absolutely huge epoch for INF holders.
In addition, the INF reserve is now holding extra unstaked SOL to provide liquidity on-chain to service LST depegs and multiply unwinds.
There is now around 184,000 unstaked SOL to service additional market liquidity 🫡☁️
INF is STILL the best place to grow SOL on Solana
@sanctumso
Holders of LST Multiply positions are concerned today.
The past 24hrs put a lot of pressure on them as on-chain SOL liquidity dried up.
I spoke with an INF Multiply whale this morning. He asked what to do and I thought I'd share with you what I shared with him.
TL;DR
[*NFA*] I'd personally wait and see. Borrow rates will likely resolve down and INF's APY is likely to spike up in the coming epochs from all the extra activity on the network.
So, what happened and why are Multiply positions showing negative APY?
Flash shock demand for SOL liquidity in the past ~24 hrs caused SOL borrow rates to spike extremely high as demand for unstaked SOL shot through the roof. This put pressure on Multiply users as multiply is really a leveraged bet that an LSTs APY will be higher than the cost to borrow SOL over time. Usually high borrow rates like this don't sustain for long. Market forces - users unwinding multiply loops or traders lending SOL to capture some of the high APY - inevitably bring them back to reality. [See Image 1]
Why does INF APY seem low in recent epochs?
INF's launch on @jup_lend last week was a smashing success - INF TVL, in SOL terms, grew %22 in a little over one week.
However, INF's APY in the few epochs following tell a very different story: That INF is currently suffering from success. Why? When new traders deposit SOL into INF, it takes an epoch for that SOL to start staking (earning) inside INF. That means immediately after large deposits, the headline APY of INF can be lower. This new SOL inside INF can act as a short-term drag on APY.
Note: this isn't always the case, but more on that in a separate post. Importantly, there are upgrades in the works for INF which will mitigate this short-term SOL drag impact on INF's APY. [See Image 2 & 3]
So, what drives INF's APY and will it be high again soon?
INF's APY fluctuates but generally outperforms over-time. Due to the nature of where it's APY comes from, it tends to be higher than LST's average APY with big outlier spikes (See Image 4). You can see this in the boxplot below.
This is because INF earns the weighted average yield of the LSTs it holds PLUS extra trading fees on top. In market conditions like the past couple of days, there is a lot of swapping activity for LSTs on chain. Much of this swapping activity gets routed through INF. When these swaps are routed through INF, it earns fees. These fees show up in the APY figures in future epochs after the swap activity. What this means is, we can expect INF APY to spike up in the next epoch or two as these extra swap fees are digested by INF.
Secondly, in times of high-network activity, traders sometimes pay higher priority fees. At the same time, the extra network activity tends to result in higher MEV which tends to boost the APY of LSTs. Well, since INF is a basket of LSTs, this bump will also show up in INF's APY.
Why not just unwind INF multiply position now and then wind up again once conditions look better?
Unwinding multiply positions incurs fees - as you need to find unstaked SOL, usually by swapping, to repay the multiply loop - which can eat into the profitability of the strategy.
As noted above, the big liquidity crunch for unstaked SOL past ~24hrs could make an unwind extremely expensive due to a shortage of unstaked SOL... At least until the next epoch ticks over and INF tops up its reserves 😉👍
Finally, to get out of INF now would be to forgo all those extra fees just earned by the pool! Remember - the fees show up in the APY AFTER the trading activity takes place.
In summary
It may be worth watching and waiting an epoch or two before rushing to unwind a Multiply position. With any luck, there'll be some epochs of juiced up APY coming and borrow rates may naturally return to equilibrium.
Special shoutout to @kamino and @AllezLabs for the great INF and LST dashboards I've used here.
![JamesHanley's tweet photo. Holders of LST Multiply positions are concerned today.
The past 24hrs put a lot of pressure on them as on-chain SOL liquidity dried up.
I spoke with an INF Multiply whale this morning. He asked what to do and I thought I'd share with you what I shared with him.
TL;DR
[*NFA*] I'd personally wait and see. Borrow rates will likely resolve down and INF's APY is likely to spike up in the coming epochs from all the extra activity on the network.
So, what happened and why are Multiply positions showing negative APY?
Flash shock demand for SOL liquidity in the past ~24 hrs caused SOL borrow rates to spike extremely high as demand for unstaked SOL shot through the roof. This put pressure on Multiply users as multiply is really a leveraged bet that an LSTs APY will be higher than the cost to borrow SOL over time. Usually high borrow rates like this don't sustain for long. Market forces - users unwinding multiply loops or traders lending SOL to capture some of the high APY - inevitably bring them back to reality. [See Image 1]
Why does INF APY seem low in recent epochs?
INF's launch on @jup_lend last week was a smashing success - INF TVL, in SOL terms, grew %22 in a little over one week.
However, INF's APY in the few epochs following tell a very different story: That INF is currently suffering from success. Why? When new traders deposit SOL into INF, it takes an epoch for that SOL to start staking (earning) inside INF. That means immediately after large deposits, the headline APY of INF can be lower. This new SOL inside INF can act as a short-term drag on APY.
Note: this isn't always the case, but more on that in a separate post. Importantly, there are upgrades in the works for INF which will mitigate this short-term SOL drag impact on INF's APY. [See Image 2 & 3]
So, what drives INF's APY and will it be high again soon?
INF's APY fluctuates but generally outperforms over-time. Due to the nature of where it's APY comes from, it tends to be higher than LST's average APY with big outlier spikes (See Image 4). You can see this in the boxplot below.
This is because INF earns the weighted average yield of the LSTs it holds PLUS extra trading fees on top. In market conditions like the past couple of days, there is a lot of swapping activity for LSTs on chain. Much of this swapping activity gets routed through INF. When these swaps are routed through INF, it earns fees. These fees show up in the APY figures in future epochs after the swap activity. What this means is, we can expect INF APY to spike up in the next epoch or two as these extra swap fees are digested by INF.
Secondly, in times of high-network activity, traders sometimes pay higher priority fees. At the same time, the extra network activity tends to result in higher MEV which tends to boost the APY of LSTs. Well, since INF is a basket of LSTs, this bump will also show up in INF's APY.
Why not just unwind INF multiply position now and then wind up again once conditions look better?
Unwinding multiply positions incurs fees - as you need to find unstaked SOL, usually by swapping, to repay the multiply loop - which can eat into the profitability of the strategy.
As noted above, the big liquidity crunch for unstaked SOL past ~24hrs could make an unwind extremely expensive due to a shortage of unstaked SOL... At least until the next epoch ticks over and INF tops up its reserves 😉👍
Finally, to get out of INF now would be to forgo all those extra fees just earned by the pool! Remember - the fees show up in the APY AFTER the trading activity takes place.
In summary
It may be worth watching and waiting an epoch or two before rushing to unwind a Multiply position. With any luck, there'll be some epochs of juiced up APY coming and borrow rates may naturally return to equilibrium.
Special shoutout to @kamino and @AllezLabs for the great INF and LST dashboards I've used here.](https://pbs.twimg.com/media/G3Bm8wTbYAAQgfa.jpg)
@STEP_iN_CRYPTO @Geninsus si vous voulez jouer sur les deux tableaux, peut-être utiliser un mot en anglais emprunté au français qui colle à la création de contenu comme « le rendez-vous »
ou un jeu de mots avec sol/solana
@Geninsus pardonnez-moi d’avance pour le manque de tact mais j’aurais tendance à dire qu’avoir un nom anglais pour du contenu français c’est être un peu le cul entre deux chaises, surtout quand on connaît le mode de fonctionnement des algorithmes de recommendation
Good news. I've joined @sanctumso ☁️
18 months ago (around 6-months before TGE), I stumbled across Sanctum while researching the Solana ecosystem.
At the time, Sanctum didn't have many eyeballs on it and their docs left much to the imagination (sorry, fellas😅). As fate would have it, I'd just suffered an injury which gave me a lot of unexpected free time to sink my teeth in.
Determined to figure out what Sanctum was, I read the docs back to front but just wasn't getting it. So I sat down in front of the whiteboard one afternoon and things started making sense.
I figured I might not be the only one trying to wrap their head around Sanctum and so decided to share my whiteboards on Twitter. 'Whiteboard guy' was accidentally born.
Not long after, I left my corporate career and jumped into the Solana ecosystem at Drift. All the while, I kept in touch with the Sanctum team and continued contributing where I could - governance, feedback and so on.
When the guys suggested I come across to Sanctum, I didn't hesitate.
Why Sanctum, why now?
There are three reasons:
One
Sanctum fundamentals are literally up and to the right: TVL, top-line revenue, gross-margin and entirely new product verticals. Sanctum has been one of the most underrated teams in the Solana ecosystem while at the exact same time has quietly and consistently exceeded expectations.. Well, most expectations (Wonderland season 2). Today, Sanctum is the 4th largest protocol on Solana, 18th in all of crypto (TVL) and is rocketing up the ranks.
Two
The team is awesome:
- HY & the engineers are gigabrains
- @YouKnowEno was born with a microphone in hand
- @0xF812 is my favourite Korean
- @cwchanchan is Solana's best designer🐐
- @eggpanned does a tremendous amount, quietly
- @soleconomist is one of the most high integrity (earnest) people in crypto.
Three
The tailwinds are indisputable: DATs, ETFs and growth of the Solana ecosystem is all rocket fuel for Sanctum. There could not be a better time to be rolling up sleeves to help.
What I'll be doing
My first mission will be taking up the helm of INF and working closely with @alkineee to explore how we can better optimize INF for LP's, partners and Sanctum. In short, make INF the best place to grow your SOL.
In addition, I'll be looking after the Cloud Holder Relations initiative including the Sanctum Quarterlies and will have my hands in plenty of other things.
Next stop
I'll be flying the Sanctum flag in Korea next week, and then in Singapore the following. Hope to see you there 🫡
Good to be home ☁️☁️☁️
@bqbrady carrot is probably the best option, you also have kamino/jupiter vault receipt tokens now i guess but limited to one platform
appreciation post for all the performance-obsessed chads making Solana better by the day, you are seen and beloved 🫶
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