# Liquidity

Liquidity is the most important factor for the adoption of any asset. Conversion delay and slippage are two key considerations.&#x20;

In an ideal world, there would be no slippage and instant conversion, so all Solana users should hold yield-bearing LSTs instead of SOL.&#x20;

What prevents this from happening is the liquidity of such LSTs. Each LST needs to have a deep pool with low swap fees and a significant amount of trading volume to offset LP’s capital costs.&#x20;

<figure><img src="https://2113331469-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FzYM0pEemeu6F3UKGPAZE%2Fuploads%2FSRyGq4BjLZCp1qnsSJuc%2Fimage.png?alt=media&#x26;token=860ce19b-787e-4a19-848c-43a8891c592d" alt=""><figcaption></figcaption></figure>

To address this problem, Solayer introduces Superior Liquidity for AVS Tokens using a pooled liquidity design. Solayer AVS LST Tokens can be instantly unwrapped (or undelegated) back to the underlying representation, sSOL.&#x20;

Unlike others that use a multi-LST pool, where the liquidity for each LST depends on their LP pools (a less efficient design), Solayer consolidates all liquidity for Solayer AVS Tokens using the sSOL-SOL pair.

This strategy results in significantly smaller price impact and significantly improved liquidity.
