Liquid staking is a process that allows cryptocurrency holders to stake their assets and earn rewards while still maintaining liquidity. The staked token can be used in various DApps, enabling users to maximize the utility of their holdings. The importance of liquid staking in the crypto ecosystem cannot be overstated. It enhances liquidity, allowing stakers to participate in other financial activities without sacrificing staking rewards.

Tonstakers is a pioneering liquid staking protocol on the TON blockchain. By offering a seamless and efficient way to stake TON tokens, Tonstakers enhances the liquidity and utility of staked assets. By contributing to the liquid staking narrative, Tonstakers plays a vital role in the growth and development of the TON blockchain.

What is Tonstakers?

Source: Tonstakers website

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 across various decentralized finance (DeFi) platforms. This enables users to earn staking rewards while maintaining the liquidity of their assets.

The primary purpose of Tonstakers is to enhance the staking experience on the TON blockchain by providing a liquid staking solution. Traditional staking often requires users to lock up their assets for a specific period, limiting their ability to participate in other financial activities. Tonstakers addresses this issue by offering a tokenized version of staked assets, allowing users to maximize the utility of their holdings without sacrificing staking rewards.

Key Features of Tonstakers

1. Liquidity: Tonstakers provides liquidity to staked assets through tsTON tokens, enabling users to engage in DeFi activities while earning staking rewards.

2. Security: The protocol is audited by Certik, ensuring high-security standards and protecting users’ assets.

3. Non-Custodial: Users retain control over their staked assets, as Tonstakers operates in a non-custodial manner, meaning there are no intermediaries involved.

4. Interoperability: tsTON tokens can be used across various DeFi platforms, enhancing the flexibility and utility of staked assets.

5. Small fish friendly: Anyone can participate in staking regardless of how much they have. Tonstaker have a minimum stake amount of 1 TON

Technology Behind Tonstakers

Proof-of-Stake Blockchain

Tonstakers operates on the TON blockchain, which utilizes a Proof-of-Stake (PoS) consensus mechanism. In PoS, validators are chosen to create new blocks and confirm transactions based on the number of tokens they hold and are willing to “stake” as collateral. This method is energy-efficient compared to Proof-of-Work (PoW) and enhances the network’s scalability and security. By leveraging PoS, Tonstakers ensures that the staking process is efficient and secure, providing users with reliable staking rewards.

Decentralization

Decentralization is a core principle of Tonstakers. The protocol is designed 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, as it reduces the risk of single points of failure and makes it more difficult for malicious actors to compromise the system. By promoting decentralization, Tonstakers contributes to the overall health and stability of the TON blockchain.

User Agnostic Approach

Tonstakers is designed to be accessible and beneficial to all users, regardless of their experience with blockchain technology. The platform provides a straightforward 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 take advantage of the benefits of liquid staking.

Tonstakers Architecture

Pool

The Pool, also known as the Pool Central Contract, is the main driving architectural framework of the Tonstakers protocol. It serves as the central component for asset lending and is responsible for lending assets to Controllers and aggregating profit/loss information from them.

Pool Interaction with Controllers: The Pool Contract caters to Controllers (Validator Controllers) by lending assets according to the current interest rate when a borrowing request is received. This ensures that the assets are efficiently utilized and managed within the protocol.

Pool Interaction with Stakers (Users, Nominators): Stakers, regular users holding TON funds, interact with the Pool contract to safely manage their deposits and withdrawals. The Pool ensures that users’ assets are securely handled and that they can participate in the staking process without any risks.

Pool Interaction with Interest Managers: The Pool continuously connects with the Interest Manager, providing important data for the protocol. It forwards a share of the profits to the Interest Manager and updates deposit parameters and roles upon request. The Interest Manager, in turn, dispatches aggregate lending statistics and modifies interest rates based on the data received from the Pool.

Pool Interaction with Governor: The Governor plays a crucial role in providing equitable governance of the TON LSt Protocol. It is in continuous communication with the Pool Central Contract to ensure fair and transparent decision-making. The Governance DAO, leveraging the voting power of governance token holders, helps decide key parameters such as protocol fees and interest rates through governance voting.

Pool Jettons

Pool Jettons are collateralized assets that stakers receive in exchange for depositing TON into the TON Liquid Staking protocol. These tokens represent the user’s share in the staking pool and are used to manage user assets lent to specific liquidity pools within the protocol. Pool Jettons provide liquidity and flexibility, allowing users to participate in DeFi activities while their original TON tokens remain staked.

Payouts

Payouts refer to the distribution of staking rewards to users. Deposits and withdrawals are the lifeblood of asset transactions on the protocol. In strict mode, the Pool Jetton to TON ratio is unknown until the consensus round ends, postponing actual transactions. However, in optimistic mode, transactions can proceed if measures are in place to mitigate misbehaving validators. This ensures that users receive their rewards efficiently and transparently, maintaining the integrity of the staking process.

Tonstakers Protocol Components

Common Components

• Pools: The Pool Central Contract is the core component of the Tonstakers protocol. It manages lending assets to Controllers and aggregates profit/loss information. The Pool ensures efficient asset utilization and secure management of user deposits and withdrawals.
• Pool Jetton: Pool Jettons are collateralized tokens that stakers receive in exchange for depositing TON into the protocol. These tokens represent the user’s share in the staking pool and provide liquidity, allowing users to engage in DeFi activities while their original TON tokens remain staked.
• Payout: Payouts refer to the distribution of staking rewards to users. The protocol supports strict and optimistic modes for handling transactions, ensuring users receive their rewards efficiently and transparently.

Governance Components

• Governor: The Governor is responsible for the equitable governance of the TON Liquid Staking protocol. It interacts continuously with the Pool Central Contract to ensure fair decision-making.
• Sudoer: The Sudoer has special administrative privileges within the protocol, allowing for critical updates and changes to be made securely.
• Halter: The Halter component can pause or halt certain protocol operations in case of emergencies or security threats, ensuring the safety of user assets.
• Interest Manager: The Interest Manager manages interest rates and forwards a share of the profits to the Pool. It also updates deposit parameters and roles as needed.
• Approver: The Approver component verifies and approves transactions and changes within the protocol, maintaining the integrity and security of the system.
• Governance DAO: The Governance DAO leverages the voting power of governance token holders to make key protocol and ecosystem decisions. This includes setting protocol fees, interest rates, and other critical parameters through governance voting.

Validator Components

• Validator Controller Smart Contract: This smart contract manages the interaction between the Pool and the validators. It ensures that assets are lent to validators according to the current interest rate and manages the validation process.
• 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.

Stakers Components

• Wallet Smart Contract (Basic): The Wallet Smart Contract allows users to interact with the TON Liquid Staking protocol. It manages user deposits, withdrawals, and the receipt of Pool Jettons. This component ensures that users can easily and securely participate in the staking process.

Potential Risks of Tonstakers Protocol

While the Tonstakers protocol offers numerous benefits, it is important to be aware of potential risks associated with its operation. Understanding these risks and how they are mitigated can help users make informed decisions when participating in the protocol.

Protocol Logic and Implementation Issues

One of the primary risks in any blockchain protocol is related to the logic and implementation of the smart contracts. Bugs or vulnerabilities in the code can lead to unexpected behavior, which might result in financial losses or security breaches. To mitigate this risk, Tonstakers undergoes rigorous auditing by a reputable security firm — Certik. Regular updates and community reviews also help in identifying and fixing potential issues promptly.

Misbehaving Validator Slashing

In a Proof-of-Stake (PoS) network, validators are responsible for maintaining the security and integrity of the blockchain. However, if a validator behaves maliciously or negligently (e.g., going offline for extended periods), they can be penalized through slashing. This means a portion of their staked assets is forfeited. Tonstakers mitigates this risk by implementing strict monitoring and penalty mechanisms to ensure validators adhere to the network’s rules and maintain high-performance standards.

Misbehaving Validator Voting

Validators play a crucial role in the network’s governance by participating in voting processes. If validators vote in a way that undermines the network’s integrity or security, it can lead to governance issues. To address this, Tonstakers employs a robust governance framework that includes multiple layers of checks and balances. The Governance DAO, composed of governance token holders, oversees key decisions and ensures that voting processes are transparent and fair.

TON Network Errors (Delayed Election Issues)

The TON network uses a complex election process to select validators for each validation cycle. Delays or errors in this process can disrupt the network’s operations and affect the performance of the staking protocol. Tonstakers mitigates this risk by implementing fallback mechanisms and redundancy in the election process. This ensures that the network can continue to function smoothly without significant disruptions even if there are delays or errors.

How to Stake on Tonstakers

Deposit TON

This can be done by buying your TON token on Gateio and transferring it to a TON wallet (Tonkeeper is highly recommended). Then, visit the Tonstakers platform, connect your TON wallet, and deposit your TON tokens.

Receive tsTON

Once your deposit is successful, you will receive tsTON tokens. These tokens represent your share in the staking pool and are a liquid representation of your staked assets. tsTON tokens can be used across various DeFi platforms, allowing you to maximize the utility of your staked assets.

Earn Rewards

As your TON tokens are staked, you will start earning rewards. These rewards are automatically calculated based on the amount of tsTON you hold. The rewards are distributed periodically and can be tracked through the platform’s dashboard.

Withdraw

When you withdraw your staked assets, you can exchange your tsTON tokens for TON tokens and the accumulated yield. The simple withdrawal process can be initiated through the platform’s interface. You will receive your original TON tokens plus any rewards earned during the staking period.

How to stake on Tonstakers Telegram Dapp

The Tonstakers Telegram Dapp is an innovative decentralized application that simplifies the staking process for TON token holders. By integrating with Telegram, a widely used messaging platform, Tonstakers makes it easy for users to manage their staking activities directly from their mobile devices or desktops.

Features of the Tonstakers Telegram Dapp

1. User-Friendly Interface: The Telegram Dapp offers an intuitive and straightforward interface, making it accessible even for users who are new to staking and DeFi.

2. Seamless Staking: Users can stake their TON tokens directly through the Telegram bot, eliminating the need for complex interactions with traditional web interfaces.

3. Real-Time Notifications: The Dapp provides real-time updates and notifications about staking activities, rewards, and important protocol updates, ensuring users are always informed.

4. Security: The Telegram Dapp leverages the security features of the TON blockchain and the Telegram platform, ensuring that users’ assets and data are protected.

5. Support and Assistance: Users can access support and assistance directly through the Telegram bot, making it easy to resolve any issues or get answers to their questions.

How Tonstakers Telegram Dapp Works

1.Accessing 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 features.

2.Connecting Wallet: Users need to connect their TON wallet to the Telegram Dapp. This can be done by following the instructions provided by the bot, ensuring a secure connection between the user’s wallet and the Dapp.

3.Staking TON: Users can stake their TON tokens by sending a deposit message to the bot once the wallet is connected. The bot will guide users through the process, including the amount to stake and the expected rewards.

4.Receiving tsTON: After staking, users receive tsTON tokens, which represent their staked assets. These tokens can be used within the Telegram Dapp or other DeFi platforms.

5.Monitoring and Managing Staking: The Telegram Dapp provides real-time updates on staking activities, including rewards earned and the status of staked assets. Users can easily monitor and manage their staking directly through the Telegram interface.

6.Withdrawing Staked Assets: When users decide to withdraw their staked assets, they can initiate the process through the Telegram bot. The bot will handle the transaction, converting tsTON back to TON and transferring it to the user’s wallet along with any accumulated rewards.

Conclusion

Tonstakers represent a significant advancement in the liquid staking space, particularly on the TON blockchain. By providing a secure, transparent, and flexible staking solution, Tonstakers enhances the utility and profitability of staked assets. Its integration with various DeFi platforms and partnerships with key players in the TON ecosystem further solidify its position as a leading liquid staking protocol. As the DeFi landscape evolves, Tonstakers is well-positioned to adapt and grow, offering users innovative ways to maximize their returns while maintaining liquidity.