How does The Router work?

All LSTs are just liquid wrapped stake accounts.

Previously, every single LST’s usage was limited to how much they could raise in their Orca/Raydium Liquidity Pools - aka their xSOL/SOL pools. If the pools were too shallow, their liquidity (aka the ability for the LST to be converted instantly to SOL) would be too weak, which means that it would be ineffectual as an LST, and DeFi protocols would not integrate the LST, due to the inability to safely liquidate the asset.

The power of the stake account is what allows Sanctum to unlock this unified liquidity network. Like a claw, Sanctum’s router can rip off and put on different liquid wrappers, ie, deposit and withdraw the stake accounts into different LSTs.

To give an example:

1. You deposit into jitoSOL.

2. You get 1 jitoSOL - this is actually a liquid wrapper of your stake account.

3. When you swap via the Sanctum Router, what happens on the backend is that the stake account gets withdrawn from jitoSOL, and deposited into the jSOL pool, giving you juicySOL!

What this means is that liquidity no longer becomes a real issue for new LSTs. If you need to convert your LST to SOL, the Sanctum Router can quickly extract your stake account from your LST and deposit it into any LST with deep liquidity pools!

All LST liquidity is now unlocked and shared among all.