LST

Sanctum: Protecting Solana from Financial Shocks

Liquid staking tokens (LST) sector on Solana is fragmented. Most LSTs have low liquidity and fail to attract users. Furthermore, the idea of LST is not as popular on Solana as it’s on Ethereum. Only about 6% of staked SOL is liquid. This hinders the use of LSTs in Solana DeFi protocols. Since majority of LSTs lack liquidity, users can experience huge slippage swapping an LST with another one, e.g., bSOL to dSOL.