Beginner mistakes in Syde: what to watch out for ⚡️Every step in DeFi is a learning experience. To make your journey with Syde easier and safer, here are three common mistakes beginners make:
1. Insufficient collateral
Mistake: depositing the minimum amount of $TON and minting almost the maximum amount of synths.
What happens: even a small drop in $TON price pushes the C-Ratio below the required threshold, and the position gets liquidated.
Solution: keep a healthy buffer and maintain your C-Ratio well above 260% to keep your positions safe.
2. Ignoring fees and market movements
Mistake: minting a synth and being surprised when the final balance is smaller than expected.
What happens: protocol fees plus asset price fluctuations impact the outcome.
Solution: always check the current fees before minting and account for market volatility.
3. Not monitoring positions
Mistake: minting a synth and then forgetting about it.
What happens: market conditions change, the C-Ratio can quickly drop, and the position becomes at risk.
Solution: review your positions regularly, especially during volatile markets.
Syde Protocol is a powerful tool, but its effectiveness depends on how consciously the user uses their positions.
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