1. What is PolarSOL?
High yield LST (liquid staked token) on Solana with the POLARBEAR validator. LST represents your stake with POLARBEAR in the form of a token - polarSOL. polarSOL grows in value in relation to the underlying staking returns.
The initial major goal of polarSOL is to achieve high yield for polarSOL LST holders and attract community members.
The long-term goal is to build a community vibe around LST and bring some exciting community experiments to life on the Solana blockchain.
2. Who is polarbear?
Polarbear is a small individual validator with 3+ years of experience. Participant of SFDP (Solana Foundation Delegation Program).
Identity:
5spfmL3ZksWzAdAoKE5VzUuQKW5R3CwxbJYBJBymXYMH
Vote Account:
CQr9DJLMeYqmXcfG8Z8cgSFw7ntXvVUamBM3dMVzWiJz
Website: https://pbear.io/
3. How do you plan to achieve high yield?
POLARBEAR is a participant in SFDP. Extra 1 SOL of stake attracted from third party attracts 1 SOL stake from SFDP.
The higher the third party stake > the higher the stake from SFDP > the higher the blockrewards from validation > the higher the share of blockrewards distributed to LST pool
4. What are potential risks of holding LST?
Smart contract risk - LST is launched with support from the Sanctum team. LST uses a version of the SPL stake pool program. Multiple security firms have audited the stake pool program nine times to ensure the total safety of funds. For the time being, there has been no exploit of the contract, but the past doesn't fully guarantee that there won't be an exploit in the future.
Cut off risk - Initially kickbacks (comission+blockrewards share) will be sent manually to the LST pool after each epoch ends to maintain a smooth APR over each epoch. A short time delay may occur between the redistribution event of rewards and the epoch end.
SFDP sunset / exclusion from the program / temporary issues - The current strategy of maintainig high yield is highly dependent on SFDP. Thus, exclusion from the program or its closure bears a risk to the strategy of polarSOL.
Other potential risks - other unknown/unmentioned risks could exist. In this regard, each LST holder must do his/her own research.
5. Who controls polarSOL?
We do not control the polarSOL LST. The LST was created in close collaboration with Sanctum team. The upgrade authority of Sanctum’s LSTs is currently held by a 10-member multisig. All members are highly reputable actors in the space: Jito, Jupiter, Laine, Mango, MRGN, Solblaze, and Sanctum. Any changes to the LST program will have to be approved by a majority vote from this multisig. No single party can unilaterally change the program.
