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

Why Lock TON Tokens on Compound?

Locking TON tokens on Compound Finance lets you earn passive income through interest while maintaining liquidity. As a decentralized lending protocol, Compound allows you to supply crypto assets like wrapped TON (wTON) to its liquidity pools. In return, you receive cTokens representing your deposit plus accumulated interest. This guide covers the entire process of converting, locking, and managing TON on Compound.

Prerequisites Before Locking TON

• TON Tokens: Minimum 50 TON recommended
• Ethereum Wallet: MetaMask or WalletConnect-compatible wallet
• ETH for Gas: 0.05-0.1 ETH for transaction fees
• Bridge Access: TON-Ethereum bridge (e.g., TON Bridge or Orbit Bridge)

Step 1: Convert TON to Wrapped TON (wTON)

1. Visit a TON-Ethereum bridge like bridge.ton.org
2. Connect your TON wallet (e.g., Tonkeeper)
3. Enter the amount of TON to wrap
4. Confirm transaction in your wallet
5. Wait for bridge confirmation (typically 5-15 minutes)

Step 2: Connect Wallet to Compound

1. Go to app.compound.finance
2. Click “Connect Wallet” (top right corner)
3. Select your Ethereum wallet provider
4. Authorize connection in your wallet

Step 3: Supply wTON to Compound

1. In Compound’s dashboard, search for “wTON” in markets
2. Click “Supply” on the wTON asset card
3. Enter the amount of wTON to lock
4. Approve the contract interaction in your wallet
5. Confirm the deposit transaction (gas fee required)

Step 4: Manage Your Position

• Track Interest: View accrued interest in your dashboard
• Withdraw: Click “Withdraw” on wTON card anytime
• Collateralize: Enable wTON as collateral to borrow assets
• Compound Earnings: Interest auto-compounds every Ethereum block (~13 seconds)

Step 5: Convert Back to TON (Optional)

1. Withdraw wTON from Compound
2. Use the Ethereum-TON bridge
3. Convert wTON to native TON
4. Send TON back to your original wallet

Security Best Practices

• Verify contract addresses on Compound’s official site
• Never share seed phrases or private keys
• Use hardware wallets for large amounts
• Check gas fees at etherscan.io/gastracker

Frequently Asked Questions (FAQ)

Is TON directly supported on Compound?

No. You must convert native TON to wrapped ERC-20 wTON using a cross-chain bridge before supplying to Compound.

What interest rates can I earn?

TON interest rates vary based on market demand. Current APY typically ranges between 2-8%. Check Compound’s dashboard for real-time rates.

Are there locking periods?

No minimum lock-up period. You can withdraw wTON anytime, but Ethereum gas fees apply for all transactions.

What risks should I consider?

• Smart contract vulnerabilities
• Bridge security risks
• Interest rate fluctuations
• ETH gas fee volatility

Can I borrow against locked TON?

Yes! Once wTON is supplied, enable it as collateral to borrow stablecoins or other supported assets within your borrowing limit.

How often is interest paid?

Interest compounds every Ethereum block (~13 seconds). Your cTOKEN balance increases continuously.

Maximizing Your TON Earnings

For optimal returns, monitor Compound’s rates weekly and consider these strategies:

1. Supply during high utilization periods when rates peak
2. Use interest to provide liquidity in DeFi pairs
3. Reinvest earnings into additional wTON deposits
4. Set up wallet alerts for rate changes

By following this guide, you’ve unlocked Compound’s earning potential for your TON holdings. Always DYOR (Do Your Own Research) and start with small amounts to familiarize yourself with the process.