# Why Ketju rejected Sanctum Validator LSTs

- URL: https://riadefi.com/rejections/sanctum-validator-lsts/
- Exposure: staking
- Memo version: v1
- Reviewed: 2026-08-19
- Next review: 2026-11-19

## The memo

REJECTED. This entry is confirmed distinct from Sanctum Infinity, already rejected elsewhere in this registry: it is the aggregate of over 1,300 separate single- and multi-validator liquid staking tokens Sanctum has issued for individual brands and validators (Jupiter's jupSOL, Bybit's bbSOL, and hundreds of smaller, thinly-liquid tokens), each backed by its own on-chain stake pool rather than a diversified basket. Sanctum itself, not the named validator, holds day-to-day pool-management authority for every one of these tokens — a real, disclosed safeguard against a compromised validator stealing funds — but that same structure means a client evaluating "Sanctum Validator LSTs" as a single entry cannot actually evaluate any specific position: the risk, liquidity, and validator quality differ token by token across well over a thousand separate pools. Sanctum's own account of the 2025-10-11 market crash confirms "some Solana LSTs began to depeg" that day while its diversified Infinity pool stabilized and even profited — direct evidence that individual validator LSTs are structurally more fragile under stress than a diversified pool, without naming which specific tokens depegged or by how much.

## What would reopen the file

- This entry is replaced by, or a client instead evaluates, a specific named validator LST with its own diligenced liquidity and operator quality, rather than the undiligenceable aggregate
- Named validator LSTs and depeg magnitudes from the October 2025 stress event are disclosed
- The shared Reserve/Infinity liquidity backstop is sized and disclosed per-LST rather than as one common pool
- A twelve-month track record with no further stress-event depeg across a representative sample of validator LSTs

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Published by Ketju Research (https://ketjuresearch.com). Educational analysis only; not legal, tax, compliance, or investment advice.
Machine-readable index: https://riadefi.com/llms.txt · Content API: https://riadefi.com/content.json