# Making the state of liquid staking optimal Liquid staking offers a significant improvement over native staking in terms of capital efficiency. However, historically, the state of liquid staking was not optimal for widespread adoption across the Solana ecosystem. For example, during periods of abnormal sell pressure, the market price of liquid staking tokens (LSTs) may drop, depending on the available liquidity in the market. While this doesn’t affect the true value (or redemption price) of LSTs—since they can always be redeemed for the full amount of SOL at the end of the epoch—it can cause panic, leading to a negative momentum and further selling. This may result in a "depeg," where the price of the LST deviates from its true SOL value. Additionally, maintaining an AMM pool for LST-SOL liquidity is inefficient because, by design, more than 50% of the pool consists of SOL that isn’t earning yield. Additionally, converting from LST A to LST B shouldn't require the user to first sell LST A for SOL. As a result, liquid staking was stuck as being somewhat "semi-liquid” - this is why Sanctum was created. Sanctum makes liquid staking fully liquid by developing a complete suite of on-chain programs and infrastructure. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://learn.sanctum.so/docs/introduction-to-lsts/making-the-state-of-liquid-staking-optimal.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.