Using Liquid Staking Tokens (LSTs) on Solv Protocol is a great way to generate passive income with your Bitcoin. But as with any decentralized finance (#defi ) activity, there are pitfalls to avoid.
Here are the biggest mistakes beginners make…and how you can avoid them.
1. NOT UNDERSTANDING HOW LSTS WORKS
Many rush to deposit their#SolvBTCinto a strategy, without really understanding what they are getting in return.
👉#Commonmistake: thinking that an LST is a simple duplicate of your SolvBTC.
What you need to know:
An LST is a token that represents your deposit of SolvBTC into a yield protocol. It can:
accumulate value (increasing value token),
or rebase (the number of tokens increases with yields).
👉 Tip: Before depositing, always read the description of each LST (e.g. SolvBTC.ENA, SolvBTC.JUP, SolvBTC.BBN...) on the Solv Protocol app. Know what you are holding.
2. USING LEVERAGE WITHOUT PROPERLY MANAGING RISK
Leverage allows you to earn more... but also to lose everything faster if the market moves in the wrong direction.
👉 Common mistake: using your LSTs as collateral to borrow, then reinvesting without limit.
What you need to know:
If the value of your collateral (your LST) drops, you may be liquidated: your position is forcibly closed, and you lose your money.
👉 Tip:
Don't exceed 30-40% leverage if you are a beginner.
Monitor the liquidation rate.
Use portfolio management tools to receive alerts.
3. NEGLECTING TRANSACTION FEES BETWEEN BLOCKCHAINS
SolvBTC and its LSTs are compatible with several blockchains (Ethereum, Arbitrum, Mantle, etc.). This is an advantage, but it can be expensive.
👉 Common mistake: Moving your LSTs between chains without taking into account bridge or gas costs.
What you need to know:
Some networks (like Ethereum) have very high fees. For small transactions, you risk losing more in fees than in profits.
👉 Tip:
Prefer blockchains like Arbitrum or BNB Chain.
Group multiple operations into one if possible.
Always check the fees before confirming.
4. LET YOUR LETS SLEEP
You received your LST after a SolvBTC deposit, but then… you don't do anything with it.
👉 Common mistake: keeping your LSTs in the portfolio without using them to generate more returns.
What you need to know:
Some LSTs provide access to other opportunities: liquidity pools, loyalty bonuses, airdrops, etc. If you remain inactive, you're missing out.
👉 Tip:
Explore the possibilities in the Solv app (menu "Opportunities").
Check if your LST qualifies for rewards.
Participate in points campaigns like Solv Points.
5. FORGETTING TO CLAIM YOUR REWARDS
Solv Protocol LSTs sometimes generate rewards (CORE, BERA, sUSDe, SATs, etc.), but they must be claimed manually.
👉 Common mistake: Thinking that rewards automatically arrive in your wallet.
What you need to know:
Some platforms require you to click "Claim" to receive your winnings. Otherwise, they may expire or remain unused.
👉 Tip:
Check your dashboard regularly.
Set a weekly reminder to claim your rewards.
Enable notifications if the app allows it.
CONCLUSION
Using LSTs with SolvBTC can be very profitable, but it requires a little vigilance. By avoiding these common mistakes, you'll put all the odds in your favor:
Understand what you are buying,
Manages risk well with leverage,
Pay attention to the fees,
Don't let anything sleep,
And always claim what you have earned.
