The article introduces Tonstakers, a liquid staking protocol on the TON blockchain. The protocol allows users to stake TON tokens and receive tsTON as a reward. This innovative approach enables users to earn staking rewards while maintaining asset liquidity. Key features of Tonstakers include high security, non-custodial operation, and low entry barriers. The protocol ensures efficient operation through an architecture comprising funding pools, governance components, and validator components. Although there are potential risks, Tonstakers safeguards user interests through strict auditing and regulatory mechanisms. Users can easily participate in staking via the web platform or Telegram Dapp, enjoying the benefits of DeFi.
What is Liquid Staking?
Liquid staking is a process that allows cryptocurrency holders to maintain asset liquidity while earning staking rewards. Staked tokens can be used in various decentralized applications (DApps), enabling users to maximize the utility of their held assets. In the crypto ecosystem, the importance of liquid staking cannot be ignored. It enhances liquidity and allows stakers to engage in other financial activities without sacrificing staking rewards.
What is Tonstakers?
Tonstakers is a liquid staking protocol built on the TON blockchain. It allows users to stake their TON tokens and receive tsTON tokens in return. These tsTON tokens represent the staked assets and can be used on various decentralized finance (DeFi) platforms. This enables users to earn staking rewards while keeping their assets liquid.
The primary goal of Tonstakers is to enhance the staking experience on the TON blockchain by providing a liquid staking solution. Traditional staking usually requires users to lock their assets for a specific period, restricting their ability to engage in other financial activities. Tonstakers addresses this issue by providing a tokenized version of the staked assets, allowing users to maximize the utility of their held assets without sacrificing staking rewards.
Key Features of Tonstakers
- Liquidity: Tonstakers provides liquidity for staked assets through tsTON tokens, allowing users to participate in DeFi activities while earning staking rewards.
- Security: The protocol has been audited by Certik to ensure high security standards and protect user assets.
- Non-Custodial: Tonstakers operates in a non-custodial manner, meaning there are no intermediaries involved, and users retain control over their staked assets.
- Interoperability: tsTON tokens can be used across various DeFi platforms, enhancing the flexibility and utility of staked assets.
- Low Entry Barrier: Tonstakers welcomes investors of all sizes. Users can stake any amount, with a minimum staking amount of just 1 TON.
Technical Principles of Tonstakers
- Proof-of-Stake Blockchain: Tonstakers operates on the TON blockchain, which uses a Proof-of-Stake (PoS) consensus mechanism. In PoS, validators are chosen to create new blocks and confirm transactions based on the amount of tokens they hold and are willing to stake as collateral. This method is more energy-efficient compared to Proof-of-Work (PoW) and improves network scalability and security. By utilizing PoS, Tonstakers ensures an efficient and secure staking process, providing reliable staking rewards for users.
- Decentralization: Decentralization is a core principle of Tonstakers. The protocol aims to distribute control across a network of validators rather than relying on a central authority. This decentralized approach enhances the network’s security and resilience by reducing the risk of single points of failure and making it more challenging for malicious actors to compromise the system. By promoting decentralization, Tonstakers contributes to the overall health and stability of the TON blockchain.
- User-Centric Approach: The Tonstakers platform is designed to be user-friendly and beneficial for all users, regardless of their experience with blockchain technology. The platform provides a simple and intuitive interface, making it easy for beginners to stake their TON tokens and participate in the DeFi ecosystem. At the same time, it offers advanced features and integrations for more experienced users, ensuring that everyone can benefit from liquid staking.
Architecture of Tonstakers
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Funding Pool: The funding pool, also known as the Central Contract Pool, is a core component of the Tonstakers protocol. It serves as the central component for asset lending and summarizes profit and loss information.
- Interaction with the Controller: The funding pool contract provides asset lending services to the controller (validator controller) based on current interest rates. When a lending request is received, it ensures efficient utilization and management of assets.
- Interaction with Stakers: Stakers are ordinary users holding TON funds, and they use the funding pool contract to securely manage deposits and withdrawals. The funding pool ensures the safe handling of user assets and allows them to participate in staking without risk.
- Interaction with the Interest Rate Manager: The funding pool continuously connects with the interest rate manager to provide crucial data for the protocol. It forwards part of the profit to the interest rate manager and updates deposit parameters and roles based on requests. In return, the interest rate manager sends aggregated lending statistics and adjusts interest rates based on data received from the funding pool.
- Interaction with the Governance: The governance plays a key role in providing fair governance for the TON LSt protocol. It maintains ongoing communication with the central funding pool contract to ensure fair and transparent decision-making. The governance DAO uses voting rights of governance token holders to decide on key parameters, such as protocol fees and interest rates.
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Funding Pool Tokens:Funding pool tokens are collateral assets received by stakers when they deposit TON into the liquid staking protocol. These tokens represent the user’s share in the staking pool and are used to manage assets lent to specific liquidity pools within the protocol. Funding pool tokens provide liquidity and flexibility, allowing users to participate in DeFi activities while their original TON tokens remain staked.
Revenue Distribution
Revenue distribution refers to the process of distributing staking rewards to users. Deposits and withdrawals are the lifelines of asset transactions on the protocol. In strict mode, the ratio of funding pool tokens to TON is unknown until the end of the consensus round, which delays actual transactions. However, in optimistic mode, if there are measures to mitigate validator misconduct, transactions can continue. This ensures that users receive rewards efficiently and transparently while maintaining the integrity of the staking process.
Components of the Tonstakers Protocol
Common Components
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Funding Pool: The funding pool central contract is the core component of the Tonstakers protocol. It manages asset lending to the controller and summarizes profit and loss information. The funding pool ensures efficient asset utilization and securely manages user deposits and withdrawals.
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Funding Pool Tokens: Funding pool tokens are collateral tokens received by stakers when they deposit TON into the protocol. These tokens represent the user’s share in the staking pool and provide liquidity, allowing users to participate in DeFi activities while keeping their original TON tokens staked.
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Revenue Distribution: Revenue distribution refers to the process of allocating staking rewards to users. The protocol supports both strict and optimistic modes for handling transactions, ensuring that users receive rewards efficiently and transparently.
Governance Components
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Governors: Responsible for the fair governance of the TON liquid staking protocol. They maintain ongoing interaction with the funding pool central contract to ensure fair decision-making.
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Super Admin (Sudoer): Holds special administrative privileges within the protocol to safely perform key updates and changes.
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Halter: Can pause or stop certain protocol operations in emergency situations or security threats to protect user assets.
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Interest Rate Manager: Manages interest rates and forwards part of the profit to the funding pool. It also updates deposit parameters and roles as needed.
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Approver: Validates and approves transactions and changes within the protocol, maintaining system integrity and security.
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Governance DAO: Utilizes the voting rights of governance token holders to make key decisions regarding the protocol and ecosystem. This includes setting protocol fees, interest rates, and other critical parameters through governance voting.
Validator Components
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Validator Controller Smart Contract: This smart contract manages the interaction between the funding pool and validators. It ensures that assets are lent to validators according to current interest rates and oversees the validation process.
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Validator Software: The software used by validators to perform their duties, including block validation and transaction confirmation. It ensures the security and efficiency of the staking process.
Staker Components
- Wallet Smart Contract (Basic Version): The wallet smart contract allows users to interact with the TON liquid staking protocol. It manages user deposits, withdrawals, and the receipt of funding pool tokens. This component ensures that users can easily and securely participate in the staking process.
Potential Risks of the Tonstakers Protocol
While the Tonstakers protocol offers numerous advantages, it is also important to understand the potential risks involved. Understanding these risks and how to mitigate them can help users make informed decisions when participating in the protocol.
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Protocol Logic and Implementation Issues: One of the main risks in blockchain protocols is related to the logic and implementation of smart contracts. Code vulnerabilities could trigger unintended behavior, leading to financial losses or security threats. To mitigate this risk, Tonstakers has invited the well-known security firm Certik to conduct rigorous audits. Additionally, regular updates and community reviews help identify and address potential issues in a timely manner.
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Validator Misconduct Penalties: In Proof-of-Stake (PoS) networks, validators are responsible for maintaining the security and integrity of the blockchain. However, if validators act maliciously or fail to perform their duties (e.g., being offline for extended periods), they may face penalties, including a reduction in staked assets. To address this risk, Tonstakers has implemented strict monitoring and penalty mechanisms to ensure validators adhere to network rules and maintain high-performance standards.
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Validator Misconduct Voting: Validators play a crucial role in network governance through the voting process. If a validator’s voting behavior compromises the integrity or security of the network, it may lead to governance issues. To address this, Tonstakers employs a robust governance framework with multi-layered checks and balances. The Governance DAO, composed of governance token holders, oversees key decisions to ensure transparency and fairness in the voting process.
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TON Network Errors (Election Delays): The TON network uses a complex election process to select validators for each validation cycle. Delays or errors in this process may disrupt network operations and impact the performance of the staking protocol. Tonstakers mitigates this risk by implementing backup mechanisms and redundancies during the election process. This ensures that even in the event of delays or errors, the network can continue to operate smoothly without significant disruptions.
How to Stake TON on Tonstakers
First, you can purchase TON tokens on a centralized exchange (CEX) and then transfer them to a TON wallet (Tonkeeper is highly recommended). Next, visit the Tonstakers platform, connect your TON wallet, and deposit TON tokens.
Receiving tsTON
After a successful deposit, you will receive tsTON tokens. These tokens represent your share in the staking pool and indicate the liquidity of your staked assets. tsTON tokens can be used on various DeFi platforms, allowing you to maximize the value of your staked assets.
Earning Rewards
Once your TON tokens are staked, you will start earning rewards. These rewards are calculated automatically based on the amount of tsTON you hold. Rewards are distributed regularly, and you can track your reward status through the platform’s dashboard.
Withdrawing Assets
When you want to withdraw your staked assets, you can exchange tsTON tokens back to TON tokens along with accrued rewards. The simple withdrawal process can be initiated through the platform interface. You will receive the original TON tokens plus all rewards earned during the staking period.
How to Stake on Tonstakers Telegram Dapp
Tonstakers Telegram Dapp is an innovative decentralized application that simplifies the staking process for TON token holders. By integrating with the widely used communication platform Telegram, Tonstakers allows users to easily manage their staking activities directly from their mobile or desktop devices.
Features of the Tonstakers Telegram Dapp
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User-Friendly Interface: The Telegram Dapp offers an intuitive and straightforward interface, making it easy for even new users to engage with staking and DeFi.
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Seamless Staking: Users can stake their TON tokens directly through the Telegram Bot without complex interactions with traditional web interfaces.
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Real-Time Notifications: The Dapp provides real-time updates and notifications about staking activities, rewards, and important protocol updates, keeping users informed.
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Security: The Telegram Dapp leverages the security features of the TON blockchain and the Telegram platform to ensure the protection of user assets and data.
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Support and Assistance: Users can receive support and assistance directly through the Telegram bot, easily resolving any issues or getting answers to their questions.
How Tonstakers Telegram Dapp Works
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Access the Dapp: Users can start by joining the Tonstakers Telegram channel and interacting with the Tonstakers Bot “@tonstakers_bot.” This bot serves as the gateway to the Dapp’s functionality.
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Connect Wallet: Users need to connect their TON wallet to the Telegram Dapp by following the instructions provided by the bot, ensuring a secure connection between the user’s wallet and the Dapp.
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Stake TON: Once the wallet is connected, users can stake their TON tokens by sending a deposit message to the bot. The bot will guide users through the process, including staking amounts and expected rewards.
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Receive tsTON: After staking, users will receive tsTON tokens, representing their staked assets. These tokens can be used within the Telegram Dapp or on other DeFi platforms.
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Monitor and Manage Staking: The Telegram Dapp provides real-time updates on staking activities, including earned rewards and the status of staked assets. Users can easily monitor and manage their staking through the Telegram interface.
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Withdraw Staked Assets: When users decide to withdraw their staked assets, they can initiate the withdrawal process through the Telegram bot. The bot will handle the transaction, converting tsTON back to TON and transferring it along with accrued rewards to the user’s wallet.
Conclusion
Tonstakers represents a significant breakthrough in liquid staking, particularly on the TON blockchain. It provides a secure, transparent, and flexible staking solution, greatly enhancing the utility and profitability of staked assets. Through integration with multiple DeFi platforms and close collaboration with key participants in the TON ecosystem, Tonstakers solidifies its position as a leading liquid staking protocol. As the DeFi sector continues to grow, Tonstakers demonstrates exceptional adaptability and growth potential, offering users innovative ways to maximize investment returns while maintaining liquidity.