How to Lock TON Tokens on Compound: Step-by-Step DeFi Guide

## Unlocking DeFi Potential: Locking TON Tokens on Compound

Locking tokens on Compound Finance lets you earn interest on your crypto assets while contributing to decentralized finance (DeFi) liquidity. For TON (The Open Network) token holders, this process involves converting TON to a compatible Ethereum-based version before supplying it to Compound. This step-by-step guide walks you through locking TON tokens on Compound safely and efficiently.

## Why Lock Tokens on Compound?

Compound is a leading DeFi lending protocol where users:
– Earn interest on supplied assets (APY varies by token)
– Use locked tokens as collateral for loans
– Participate in decentralized governance
– Contribute to liquidity pools

Locking TON tokens specifically allows you to:

1. Generate passive income from idle assets
2. Access Ethereum’s DeFi ecosystem
3. Hedge against market volatility through yield generation
4. Maintain exposure to TON’s potential appreciation

## Prerequisites for Locking TON on Compound

Before starting, ensure you have:

– **TON tokens** in a non-custodial wallet (e.g., Tonkeeper)
– **Ethereum wallet** (MetaMask or WalletConnect compatible)
– **Bridged wTON tokens** (Wrapped TON on Ethereum)
– **ETH for gas fees** (minimum 0.05 ETH recommended)
– **Web3-enabled browser** (Chrome/Firefox with extensions)

## Step-by-Step: Locking TON Tokens on Compound

### Step 1: Bridge TON to Ethereum Network

Since TON operates on its own blockchain, you must bridge it to Ethereum:

1. Visit a cross-chain bridge like **Orbit Bridge** or **Multichain**
2. Connect your TON wallet
3. Select TON as “From” network and Ethereum as “To” network
4. Enter the amount of TON to bridge (minimums apply)
5. Confirm transaction and wait for wTON tokens (~5-15 mins)

### Step 2: Connect Wallet to Compound

1. Go to [app.compound.finance](https://app.compound.finance)
2. Click “Connect Wallet” (top right corner)
3. Choose your Ethereum wallet provider (e.g., MetaMask)
4. Authorize connection in your wallet pop-up

### Step 3: Supply wTON to Compound

1. In Compound’s dashboard, locate “Supply Markets” section
2. Search for “wTON” or select it from the list
3. Click “Supply” next to wTON
4. Enter the amount to lock (check gas fee estimates)
5. Confirm transaction in your wallet

### Step 4: Monitor and Manage Assets

After confirmation:

– Track accrued interest in “Your Supplies” section
– View APY rates for wTON in real-time
– Withdraw funds anytime (subject to liquidity)
– Use collateral to borrow other assets if desired

## Key Considerations When Locking TON

– **Gas Fees**: Ethereum transactions require ETH. Time operations during low-congestion periods.
– **APY Fluctuations**: Interest rates change based on market demand for wTON loans.
– **Collateral Factor**: Currently ~75% for wTON (limits borrowing against locked tokens).
– **Bridge Risks**: Use reputable bridges and verify contract addresses.
– **Impermanent Loss**: Not applicable since Compound isn’t an AMM.

## Troubleshooting Common Issues

– **wTON Not Showing?** Refresh app or check bridge completion
– **Transaction Stuck?** Increase gas fee in wallet settings
– **Insufficient ETH?** Buy ETH via exchanges or swap tokens
– **Unsupported Token?** Verify wTON contract address matches Compound’s

## Alternatives to Compound for TON

If bridging seems complex, consider:

– **TON-native staking**: Direct delegation via Tonkeeper wallet (5-7% APY)
– **TON-based DEXs**: Provide liquidity on STON.fi or DeDust
– **Custodial options**: Centralized exchanges like OKX offer TON staking

## Frequently Asked Questions

### Can I lock native TON directly on Compound?
No. Compound operates on Ethereum. You must bridge TON to wTON (ERC-20 version) first.

### What’s the minimum TON to lock?
No protocol minimum, but consider:
– Bridge minimums (often 10-50 TON)
– Ethereum gas fees making small amounts impractical

### How often is interest paid?
Interest compounds every Ethereum block (~12 seconds). Earnings accrue continuously.

### Is locked TON safe on Compound?
While audited, risks include:
– Smart contract vulnerabilities
– Oracle failures
– wTON depegging events
Never lock more than you can afford to lose.

### Can I unlock tokens anytime?
Yes, via “Withdraw” button. Funds return instantly minus gas fees.

## Maximizing Your TON Locking Strategy

To optimize returns:

1. **Monitor rates**: Use DeFi Pulse or CoinGecko for APY comparisons
2. **Reinvest earnings**: Compound interest by relocking accrued wTON
3. **Diversify**: Split assets between Compound and TON-native options
4. **Stay updated**: Follow Compound Governance for new token approvals

By following these steps, TON holders can securely participate in Ethereum’s DeFi ecosystem while maintaining exposure to TON’s growth. Always verify contract addresses, start with small amounts, and never share private keys.