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

What Are Locked Tokens on Compound?

Locking tokens on Compound refers to depositing cryptocurrency assets into Compound Finance’s lending protocol to earn interest. When you lock tokens like TON (The Open Network token), they become part of Compound’s liquidity pools where borrowers can utilize them. In return, you receive cTokens (e.g., cTON) representing your deposit and accruing interest over time. This process transforms idle assets into passive income generators while supporting decentralized finance (DeFi) ecosystems.

Why Lock TON Tokens on Compound?

Locking TON tokens on Compound offers three key advantages:

1. Earn Passive Income: Receive variable APY (Annual Percentage Yield) paid in TON tokens automatically.
2. Liquidity Access: Borrow against your locked TON without selling your holdings.
3. DeFi Integration: Participate in lending markets and leverage Compound’s battle-tested security.

Prerequisites Before Locking TON

Ensure you have:

• A Web3 wallet (MetaMask, Trust Wallet, or Coinbase Wallet)
• Enough TON tokens in your wallet (minimum 10 TON recommended)
• Ethereum (ETH) for gas fees (approx. $10–$30 worth)
• Bridge access if holding native TON (use bridges like Orbit Bridge or Multichain)

Step-by-Step Guide to Lock TON Tokens on Compound

Step 1: Bridge TON to Ethereum (If Needed)

1. Visit a cross-chain bridge (e.g., Multichain.org).
2. Connect your wallet and select TON as the source chain.
3. Choose Ethereum as the destination chain and confirm the transaction.
4. Wait for bridge confirmation (typically 5–15 minutes).

Step 2: Connect Wallet to Compound

1. Go to the official Compound Finance app (app.compound.finance).
2. Click “Connect Wallet” and authorize your Web3 wallet.
3. Switch your wallet network to Ethereum Mainnet.

Step 3: Deposit TON Tokens

1. In Compound’s dashboard, locate “TON” under Supply Markets.
2. Click “Supply” and enter the TON amount to lock.
3. Approve the contract interaction in your wallet (requires ETH gas fee).
4. Confirm the deposit transaction (second gas fee).

Step 4: Verify and Monitor

1. Check your “Supplied” balance on Compound’s dashboard.
2. View accrued interest in real-time under “Earned.”
3. Track cTON tokens in your wallet representing locked TON.

Key Risks and Safety Tips

• Smart Contract Risk: Compound audits are public, but exploits remain possible.
• Interest Rate Volatility: APY fluctuates based on market demand.
• Bridge Vulnerabilities: Use reputable bridges with high TVL.
• Gas Fees: Ethereum transactions can be expensive during peak times.

Always verify contract addresses and bookmark Compound’s official site to avoid phishing scams.

Frequently Asked Questions (FAQ)

Can I lock native TON directly on Compound?

No. Compound operates on Ethereum, so you must bridge TON to an ERC-20 wrapped version (wTON) first.

How often is interest paid on locked TON?

Interest compounds every Ethereum block (~15 seconds) and is added to your cTON balance automatically.

Is there a minimum lock-up period?

No. You can withdraw TON anytime (subject to Ethereum gas fees and market liquidity).

What happens if Compound gets hacked?

Compound’s $250M+ security fund covers user losses, but coverage isn’t guaranteed. Diversify across protocols.

Can I borrow against locked TON?

Yes! Use your supplied TON as collateral to borrow stablecoins or other supported assets.

Are there taxes on earned interest?

In most jurisdictions, interest income is taxable. Consult a tax professional for guidance.