# 3. KTON Basics

## 3.1 What Is KTON?

* **Liquid Staking Token (Jetton):** A transferable representation of staked TON plus accrued rewards.
* **1 $KTON ≠ 1 TON:** The exchange rate grows over time as validator rewards accumulate.
* **ERC-20 Equivalent:** Jettons follow the **TIP-3** standard, the token interface for TON smart contracts.

## 3.2 How It Works

1. **Deposit** TON into the pool via <https://app.kton.io/> or the Telegram Mini App.
2. **Mint** — The pool issues **$KTON** to your wallet proportional to your deposit divided by the current exchange rate.
3. **Earn** — Validators generate rewards, increasing the exchange rate *TON per KTON*.
4. **Redeem or Swap** — Burn $KTON to reclaim TON (with an optional instant-withdrawal fee) or trade on DEXs for immediate liquidity.

## 3.3 Key Metrics

| Metric                       | Description                                             |
| ---------------------------- | ------------------------------------------------------- |
| **Total Value Locked (TVL)** | Total TON controlled by the pool. Visible on DefiLlama. |
| **APY**                      | Annualised yield after fees. Target **8 %** with MEV.   |
| **Exchange Rate**            | TON per KTON. Starts at 1.0 and increases with rewards. |
| **Instant Withdrawal Fee**   | Dynamic fee applied when swapping $KTON→TON instantly.  |

## 3.4 Contract Addresses

| Network     | Contract               | Address                                            |
| ----------- | ---------------------- | -------------------------------------------------- |
| TON Mainnet | **KTON Jetton Minter** | `EQBuIhXNNkWf9AW9miNGNTSO_uFZ23ejfIWrieXge5f733mw` |
| TON Mainnet | **Pool**               | `EQA9HwEZD_tONfVz6lJS0PVKR5viEiEGyj9AuQewGQVnXPg0` |
| TON Mainnet | **Controller**         | `Ef9GOR1wqJFPVpbHOxObSATkdbfTizRTmDi6DdjJFYaRKhoK` |
| TON Mainnet | **Validator**          | `Uf_lhdKTXcTJUnCVWYWXaoziqxkkLl-8PBP0be601QkE9TyT` |

> Always verify addresses on-chain via [TONScan](https://tonscan.org/) before interacting.

## 3.5 Fees

* **Protocol Fee:** A DAO-governed share of validator rewards goes to the treasury.
* **Instant Withdrawal Fee:** Dynamic, governed by liquidity conditions.

## 3.6 Risks

* **Validator Slashing:** Mitigated by diversification and conservative staking thresholds.
* **Smart-Contract Risk:** Minimised through audits and formal verification.
* **Peg Deviation:** Liquidity pools help maintain a tight KTON↔TON peg, but extreme market conditions may widen spread.

Next: **4. Technical Architecture**


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.kton.io/3.-kton-basics.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.