Minting, burning, and the C-Ratio

The mechanisms above ensure SyTON stakers are incentivized to maintain their Collateralisation Ratio (C-Ratio) at the target ratio. This ensures Synths are backed by sufficient collateral to absorb large price shocks. If the value of SyTON or Synths fluctuates, each staker’s C Ratio will fluctuate. If it falls below the target (although there is a small buffer allowing for minor fluctuations), they will be unable to claim fees until they restore their ratio. They adjust their ratio by either minting or burning.