Architecture

PrimeStaking's infrastructure is designed for reliability, transparency, and institutional-grade integration. All core logic runs on audited, on-chain smart contracts deployed on the XDC Network.

The infrastructure is developed in collaboration with Nethermind (smart contract engineering and security) and the XDC Core team (network-level validator integration).

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System Design

User / Partner API
        │
        ▼
┌──────────────────────┐
│   Frontend / SDK     │  ← Web app, API, or partner integration layer
└──────┬───────────────┘
       │
       ▼
┌──────────────────────┐
│  Liquid Staking      │  ← Core smart contracts (XDC Network)
│  Contract Suite      │
│  ┌────────────────┐  │
│  │ Staking Pool   │──┼──→ Accepts XDC deposits, mints psXDC
│  │ Reward Engine  │──┼──→ Calculates and distributes rewards
│  │ Withdrawal Mgr │──┼──→ Processes redemption queue
│  └────────────────┘  │
└──────┬───────────────┘
       │
       ▼
┌──────────────────────┐
│  Validator Layer     │  ← XDC Network masternodes
│  (Smart Contract     │
│   Managed)           │
└──────────────────────┘

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Contract Topology

Contract	Function	Network
Liquid Staking Pool	Accepts XDC deposits, mints/burns psXDC	XDC Network
Reward Distribution	Proportional reward allocation to psXDC holders	XDC Network
Withdrawal Queue	Manages redemption requests through validator unstaking	XDC Network
Validator Custody	Smart contract-based validator key management (permissionless)	XDC Network

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Validator Infrastructure

PrimeStaking operates XDC Network masternodes that generate the staking yield:

• Validator keys are managed by on-chain smart contracts - no human custody

• Staked XDC is allocated across validators for redundancy

• Performance monitoring ensures uptime and optimal reward generation

• Zero slashing risk - XDC Network uses a masternode model that does not implement slashing, eliminating the capital loss risk present in ETH-based liquid staking protocols

→ Custody Model Details

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Security Layers

Layer	Implementation
Smart contract audits	QuillAudits - 98.8% score on XDC Staking Contract
Permissionless custody	Validator keys secured by on-chain contracts
On-chain transparency	Every staking, reward, and withdrawal event is logged and verifiable
Upgradeable architecture	Proxy patterns for controlled contract upgrades
Reentrancy protection	Built into all state-changing functions
Pausable	Emergency pause capability with authorized roles

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Data Flow

Staking

1. User deposits XDC → Liquid Staking Pool contract

2. Contract mints psXDC (1:1) → User wallet

3. XDC is delegated to validators → Rewards begin accruing

Reward Distribution

1. Validators generate staking rewards on XDC Network

2. Reward Engine calculates proportional allocation per psXDC holder

3. Users claim rewards from the Rewards contract

Withdrawal

1. User burns psXDC → Withdrawal Queue contract

2. Contract initiates validator unstaking

3. XDC is returned after validator queue processing (~31 days average)

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Integration Points

Partners can integrate at multiple levels depending on the chosen model. Technical details are shared during the integration process.

Integration Level	Description	Use Case
Frontend	Embed the staking UI or build a custom frontend	White-label web integration
Smart Contract	Interact directly with staking contracts	Backend/API integration
Data / Reporting	On-chain event indexing for portfolio and settlement reporting	Compliance and reconciliation

→ Integration Models