@Chainflow
Good Q’s. Stake account conversions account for a significantly smaller percentage of JitoSOL mints relative to native SOL mints. Additionally, my personal view is that a stake account conversion user will likely be a longer-term holder, and is thus more forgiving of a time-based lockup. We do not expect a significant negative impact from a competitive standpoint, and can adjust parameters based on user feedback.
@fplee @n8tr0n
Thanks to you both for the thoughtful points about the language and narrative at play here. I agree that the terminology, including “toxic flow” and “vampire attack” could be interpreted as needlessly bellicose, especially given the history of extreme animosity between protocol development teams when it comes to vampire attacks.
With that in mind it’s worth clarifying, to FP’s point, that this is not a matter of Jito vs Sanctum. Jito benefits from Sanctum in many ways and vice versa, and there’s a lot of integration work to be done in the future – it would be interesting to see a VRT Infinity Pool, or find a way to include VRTs in the current LST-only pool. Both projects are here for the long term, and there’s lots of potential to collaborate in positive-sum ways.
That being said, there is inarguably an outstanding negative-sum interaction currently at play between the protocols. This specific interaction is cloistered in how a lone part of the wider Sanctum network (the Router) interacts with a lone part of the Jito Network (the JitoSOL stake pool). Regardless of the terminology used to describe the interaction, JitoSOL holders currently see significant negative outcomes from this integration, which Sanctum currently controls.
FP made one technical argument for why this specific interaction is not a negative outcome for JitoSOL users, specifically that JitoSOL users benefit from other large pool liquidity via the Router.
The data demonstrates that this argument is thoroughly unconvincing. I’d refer again to this chart from the proposal:
For the month of September, there were only 10 swaps where JitoSOL users benefitted from the liquidity of other pools. Meanwhile, there were tens of thousands of swaps where non-JitoSOL users benefitted from incentivized JitoSOL liquidity. The proposal details how this negatively impacts JitoSOL users with some detail.
Interceptor is designed to counteract these negative impacts, and to give the Jito DAO the agency to determine the conditions for how these protocol elements interact in the future.
Ultimately this proposal should not be viewed as an “attack” in either direction, but as a new foundation from which the protocols can work to create more positive-sum interactions, including some potential examples described in this thread.