Liquidity Model

PrimeStaking's liquidity model ensures that psXDC remains a usable, tradeable asset while staked XDC generates validator rewards.


psXDC Liquidity

Token Properties

Property
Detail

Name

psXDC (Prime Staked XDC)

Mint ratio

1 XDC = 1 psXDC (always)

Network

XDC Network

Transferable

Yes - standard XRC-20 token

Earns rewards

Yes - holding psXDC accrues staking rewards

Redeemable

Yes - burn psXDC to withdraw XDC

Minting & Redemption

  • Minting: Users deposit XDC and receive psXDC at a 1:1 ratio, instantly

  • Redemption: Users burn psXDC to initiate a withdrawal; XDC is returned after validator queue processing (~31 days average)

  • No slippage on mint/burn: The ratio is protocol-enforced at 1:1

Market Liquidity

psXDC is paired with XDC on the XSWAP DEX, providing a secondary market for users who want instant exit without waiting for the validator queue.

DEX
Pair
Link

XSWAP

psXDC / XDC

Partners should note that DEX liquidity depth determines how large a position can be exited instantly without price impact. The protocol redemption path (burn psXDC → wait ~31 days) is always available regardless of DEX liquidity conditions, and guarantees 1:1 redemption.


Withdrawal Queue

How It Works

  1. User submits a withdrawal request (burns psXDC)

  2. The protocol initiates validator unstaking

  3. XDC is returned after the XDC Network validator queue processes the request

  4. Average processing time: ~31 days

The ~31 day timeline is determined by the XDC Network's validator unstaking mechanism and is standard across all XDC staking implementations - not specific to PrimeStaking.

Implications for Partners

Consideration
Detail

Not instant

Withdrawals are subject to network-level validator unstaking delays

Predictable

~31 day average; transparent queue position

No partial fills

Full withdrawal amount is returned once processed

Instant alternative

Users can swap psXDC on XSWAP DEX for immediate exit (subject to pool depth)

User communication

Partners should clearly communicate both withdrawal paths to users


Liquidity Risk Assessment

Risk
Likelihood
Impact
Mitigation

psXDC depegs from XDC

Low

Medium

DEX liquidity pool, arbitrage incentives, 1:1 protocol redemption

DEX liquidity dries up

Low

Low

Protocol redemption always available (with queue delay)

Mass withdrawal event

Low

Medium

Validator queue processes requests sequentially; no protocol insolvency risk


Key Metrics for Partners

All metrics below are verifiable on-chain:

Metric
Description
Where to Check

Total psXDC supply

Total staked XDC in the protocol

DEX liquidity depth

Available liquidity in psXDC/XDC pool

Withdrawal queue length

Number of pending withdrawal requests

On-chain

Average processing time

Historical average for withdrawal completion

On-chain

Peg ratio

Current market price of psXDC vs XDC

XSWAP price feed

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