How to Lock TON Tokens on Compound: Step-by-Step Guide (2023)

## Introduction to Locking TON on Compound
Locking TON tokens on Compound allows you to earn passive income through decentralized finance (DeFi). As the native cryptocurrency of The Open Network, TON can be utilized within Compound’s lending protocol to generate yield. This guide provides a detailed walkthrough for securely locking your TON tokens, covering prerequisites, execution steps, and key considerations. By participating, you contribute liquidity to the ecosystem while earning interest.

## Prerequisites for Locking TON
Before starting, ensure you have:

1. **TON Tokens**: At least 10 TON for transactions (store in a non-custodial wallet like Tonkeeper).
2. **Ethereum Wallet**: MetaMask installed with ETH for gas fees (since Compound operates on Ethereum).
3. **Wrapped TON (wTON)**: TON must be converted to ERC-20 format using a cross-chain bridge.
4. **Compound Account**: Registered at [app.compound.finance](https://app.compound.finance).
5. **Basic ETH**: 0.05–0.1 ETH to cover transaction costs.

## Step-by-Step: Locking TON on Compound
Follow these steps precisely to lock your tokens:

### Step 1: Convert TON to Wrapped TON (wTON)
1. Visit a TON-Ethereum bridge like [Osmosis](https://app.osmosis.zone/) or [Multichain](https://multichain.org/).
2. Connect your TON wallet and Ethereum wallet.
3. Specify the TON amount to wrap and confirm the transaction.
4. Wait for confirmation (typically 5–15 minutes). wTON will appear in your Ethereum wallet.

### Step 2: Access Compound Protocol
1. Open [Compound’s dashboard](https://app.compound.finance) and connect your MetaMask.
2. Navigate to the “Markets” section and search for “wTON” in the asset list.

### Step 3: Supply wTON to Compound
1. Click “Supply” next to the wTON listing.
2. Enter the amount to lock (ensure you retain some ETH for fees).
3. Review interest rates and collateralization options.
4. Approve the transaction in MetaMask and pay the gas fee.
5. Wait for blockchain confirmation. Your wTON is now locked!

### Step 4: Monitor and Manage Assets
– Track accrued interest in Compound’s dashboard.
– Withdraw anytime by clicking “Withdraw” (subject to gas fees).
– Use locked wTON as collateral for loans in other Compound markets.

## Risks and Best Practices
While locking TON offers rewards, consider these risks:

– **Smart Contract Vulnerabilities**: Compound audits its code, but exploits remain possible.
– **Interest Rate Fluctuations**: APY changes based on market demand.
– **Impermanent Loss**: Rare for single-asset locking but possible if wTON/ETH prices shift dramatically.

**Safety Tips**:
– Start with small amounts to test the process.
– Never share private keys or seed phrases.
– Verify contract addresses via Compound’s official channels.

## Frequently Asked Questions (FAQ)

### Can I lock native TON directly on Compound?
No. TON operates on its own blockchain, while Compound supports Ethereum-based assets. You must convert TON to wTON (ERC-20) via a cross-chain bridge first.

### What’s the minimum TON required to start?
Technically, no minimum—but factor in gas costs. Locking under 5 TON may be uneconomical due to Ethereum fees. Aim for 10+ TON for optimal value.

### How often is interest paid on locked TON?
Interest accrues continuously and compounds every Ethereum block (~12 seconds). You earn cTON tokens representing your growing balance, redeemable upon withdrawal.

### Is locked TON usable as collateral?
Yes! Once supplied, wTON can collateralize loans for other assets on Compound (e.g., ETH or USDC). Maintain sufficient collateralization ratios to avoid liquidation.

### Can I unlock TON instantly?
Withdrawals process immediately after blockchain confirmation (1–5 minutes). However, during extreme network congestion, delays may occur.

## Conclusion
Locking TON on Compound unlocks DeFi opportunities through a straightforward four-step process: bridge TON to wTON, connect to Compound, supply tokens, and monitor earnings. Always prioritize security by double-checking addresses and starting small. As the TON ecosystem evolves, integrating with established protocols like Compound empowers holders to maximize asset utility. For real-time APY updates and supported assets, visit Compound’s official dashboard.