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 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