Is pathSOL safe?
Let's address the security concerns that come as a pathSOL holder.
How can an LST be safe and secure?
LSTs on Solana are deemed secure when their full value can be redeemed in a single swap for the same value in SOL, the native ecosystem token for Solana.
As mentioned prior, pathSOL is unique in its yield distribution, in that yield is allocated to the team, rather than accruing to the value of the LST. This means that for pathSOL to be 'secure', it must always be pegged 1:1 to the exact value of SOL.
How does 1 pathSOL always stay equal to 1 SOL?
Introducing... Sanctum’s Infinity Reserve! Thanks to the Sanctum router and the Infinity pool it is extremely unlikely that pathSOL will de-peg.
Bonus pathSOL technical details
pathSOL was minted using the Sanctum Multi-validator SPL Stake Pool Program:
SPMBzsVUuoHA4Jm6KunbsotaahvVikZs1JyTW6iJvbn
and uses a version of the SPL stake pool program 4.
Multiple security firms have audited the stake pool program nine times to ensure total safety of funds. So far it has controlled $1B+ of value over more than two years, with no exploits found.
Of course, just because a contract has not been exploited in the past does not mean it will never ever be exploited in the future, but it is clear that the stake pool program is one of the safest programs in the world.
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