How Does Tonstakers LSD Work?
Tonstakers is the largest liquid staking protocol on the TON blockchain, holding about 67% of all liquid-staked TON. When you deposit TON, you receive tsTON, a token that grows in value over time as staking rewards accrue (up to ~5% APY). You can stake as little as 1 TON directly through Tonkeeper wallet, OKX, or even a Telegram bot. The protocol has been audited by CertiK with a 94/100 score and uses multi-signature wallets to protect funds.
TVL
$95M
Sector
Liquid Staking
Risk Grade
B
Value Grade
C
Core Mechanisms
Staking/Liquid-Staking
tsTON: exchange-rate liquid staking token for TON with reward accrual
Users deposit TON and receive tsTON, which appreciates in value as staking rewards accumulate. Over time 1 tsTON becomes worth more than 1 TON. Minimum stake of 1 TON.
Staking/Validator-Set
Multi-validator delegation across partner validators on TON
Tonstakers distributes pooled TON across multiple partner validators. Validator selection criteria and rebalancing logic are managed by the protocol team.
Staking/Reward-Distribution
Exchange-rate model with continuous reward accrual in tsTON value
Rewards are reflected in the tsTON exchange rate rather than distributed as separate tokens. Up to 5% APY from native TON staking rewards.
Custody/Smart-Contract
Open-source TON smart contracts with CertiK audit (94/100)
Smart contracts are open-source and audited by CertiK with a 94/100 score. Multi-signature wallets protect pooled funds.
Integration/Wallet
NovelNative integration with Tonkeeper, OKX, and Telegram bot staking
Staking directly through Telegram bot is a novel distribution channel unique to the TON ecosystem. Also integrated with Tonkeeper wallet and OKX for seamless access.
How the Pieces Interact
With ~67% market share, Tonstakers is the dominant liquid staking provider on TON. A protocol failure would disrupt the majority of the TON DeFi ecosystem that depends on tsTON as a primary yield-bearing asset.
TON uses FunC/Tact rather than Solidity, with a much smaller pool of security auditors and fewer battle-tested security tools. Even a strong CertiK audit may miss language-specific vulnerabilities.
The multisig controlling fund distribution to validators represents a centralized trust assumption. Compromise of the multisig could redirect staked TON to malicious validators.
Telegram-based staking introduces phishing and social engineering attack vectors not present in traditional DeFi interfaces. Users may interact with fake bots that drain funds.
What Could Go Wrong
- Dominant 67% market share of TON liquid staking creates systemic concentration risk for the entire TON DeFi ecosystem
- TON blockchain smart contract language (FunC/Tact) has a smaller auditor pool and less battle-tested tooling compared to EVM, increasing undiscovered vulnerability risk
- tsTON DeFi integrations are limited to the TON ecosystem, which is still nascent and less liquid than EVM-based DeFi
Tonstakers Smart Contract Exploit and TON DeFi Contagion
TailTrigger: A vulnerability in Tonstakers' FunC smart contracts is exploited, draining the staking pool or enabling unauthorized withdrawal of pooled TON
- 1.Attacker exploits a FunC-specific vulnerability in Tonstakers' staking contracts (e.g., reentrancy, integer overflow, or TON-specific message handling bug) — Pooled TON partially or fully drained from the staking contract
- 2.tsTON exchange rate collapses as the backing TON is stolen — tsTON holders face immediate losses; tsTON trades at severe discount on DEXes
- 3.DeFi protocols on TON that use tsTON as collateral (lending, DEX LPs) trigger cascading liquidations — TON DeFi ecosystem contracts sharply as 67% of liquid staked TON is compromised
- 4.Confidence in TON DeFi collapses; capital flight from TON ecosystem — Broader TON token price impact as DeFi TVL drops by majority
Risk Profile at a Glance
Overall: B (25/100)
Lower score = safer