Collateralization

To use Syde Protocol, you first need to deposit TON as collateral. This collateral will then be used to mint synthetic assets, which you can stake for yields, enhancing your capital efficiency.

Syde Protocol requires a collateralization ratio (C-Ratio) of 300%. This means that for every synthetic asset minted, you must have three times the value in TON as collateral. This overcollateralization ensures that the protocol remains secure and that synthetic assets are always sufficiently backed by collateral.

The higher collateralization ratio helps maintain the stability of the synthetic assets and reduces the risk of liquidation, ensuring that your positions remain safe even during market fluctuations.