# 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).

***

## 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)           │
└──────────────────────┘
```

***

## 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 |

***

## 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](https://docs.primestaking.xyz/for-partners/custody-model)

***

## 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                     |

***

## 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 (\~35 days average)

***

## 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](https://docs.primestaking.xyz/for-partners/integration-models)