> For the complete documentation index, see [llms.txt](https://docs.primestaking.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.primestaking.xyz/for-partners/liquidity-model.md). # Liquidity Model PrimeStaking V3 separates **protocol redemption** (burning shares for XDC against the vault) from **market price** (psXDC on a DEX). Both stay healthy for partner integrations, but they behave differently and the difference is important. *** ## psXDC V3 Token Properties | Property | Detail | | ----------------------------------- | ---------------------------------------------------------------------------------------------------------------------- | | **Name** | psXDC (Prime Staked XDC) | | **Standard** | ERC-4626 vault share | | **Pricing** | Exchange rate `totalAssets / totalShares` — grows over time as validator rewards accrue. **Not a fixed 1:1.** | | **Network** | XDC Network (chain ID `50`) | | **Address** | [`0x98D916F5773Ac0482b49856f2659d6c32114C4Ba`](https://xdcscan.com/address/0x98D916F5773Ac0482b49856f2659d6c32114C4Ba) | | **Transferable** | Yes — standard XRC-20 token | | **Yield mechanism** | Share-price appreciation; rewards are already inside the share — no manual `claim` | | **Redeemable against the protocol** | Yes — `withdraw` / `redeem` (instant when buffer suffices) or `redeemWithQueue` (instant or queued) | | **Market-tradeable** | Yes — XSWAP and other DEXs | *** ## Two distinct exit paths ### 1. Protocol redemption (NAV-based) When you burn psXDC against the vault, you receive XDC at the **current exchange rate**, not a fixed 1:1. The amount is `convertToAssets(shares)`. * **Instant** when the vault's liquid buffer (default 5% of total assets, configurable via `setBufferBps`) covers your request — settled in the same transaction. * **Queued** when the buffer is insufficient — escrows the shares, adds you to the FIFO queue. Processed as new deposits / reward inflows / masternode resignations replenish liquidity. * **No partial fills** — each request settles in full when its turn comes. * **Free cancellation** — you can `cancelQueuedWithdrawal` any time before settlement and get your shares back unchanged. For very large redemptions where the vault doesn't have a sufficient buffer + recent rewards, the upper bound on settlement is the XDC Network's `candidateWithdrawDelay` — about 35 days under typical real-world block times. This delay is a network-level property of XDC's masternode unstaking flow, not a PrimeStaking-specific gate. → [Withdrawals: Instant vs Queued](/products/xdc-liquid-staking/staking-guide/withdrawals-instant-vs-queued.md) ### 2. Market exit (DEX swap) Holders can swap psXDC for XDC on a DEX (e.g. [XSWAP](https://info.xspswap.finance/#/pools/0xc4a0b4ce176c623a281bc565bfd35eab4fd7050a)). Market price is set by the AMM and is influenced by: * The vault's current NAV (`totalAssets / totalShares`) — the long-run anchor. * Pool depth and recent volume. * Demand for immediate liquidity vs willingness to wait for protocol redemption. The market price can sit **at, above, or below NAV** depending on these factors. Arbitrageurs can close large gaps using the protocol's instant redemption path when liquidity is available, but small NAV/market deltas are normal. | Concept | NAV (protocol) | Market price (DEX) | | -------------- | --------------------------------------------------- | ------------------------- | | **Reference** | `totalAssets / totalShares` | AMM pool ratio | | **Updates** | When rewards or losses are reflected on-chain | Continuously via trades | | **Slippage** | None for amounts within the buffer; queue otherwise | Subject to pool depth | | **Settlement** | Instant or queued by the vault | Atomic at trade execution | *** ## Implications for Partners | Consideration | Detail | | ---------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **Two value references** | A user's psXDC balance can be valued either at NAV (`convertToAssets`) or at DEX market price. Use NAV for accounting and partner reporting; DEX price for synchronous trading flows. | | **Self-service withdrawals** | Partners do not need to operate any approval flow; users can redeem on their own through `redeemWithQueue`. | | **Buffer planning** | If you expect bursty user withdrawal patterns, coordinate with PrimeStaking on buffer sizing (`setBufferBps`) — this affects how often partner users hit the queue. | | **Queue UX** | Partners surfacing psXDC redemption should distinguish "complete" from "queued, self-claim later" outcomes — the contract makes this explicit through events. | | **DEX integration** | psXDC pools provide an instant exit, but the protocol's NAV is the canonical value and is what should drive any institutional reporting. | *** ## Liquidity Risk Assessment | Risk | Likelihood | Impact | Mitigation | | ---------------------------------------------- | ---------- | ------ | -------------------------------------------------------------------------------------------------------------------------------------------------------- | | psXDC trades at a discount to NAV on a DEX | Medium | Low | Arbitrageurs can buy on the DEX and redeem at NAV when the queue allows; the protocol cannot guarantee zero discount in all conditions. | | Mass redemption event | Low | Medium | FIFO queue ensures fair sequencing; the protocol cannot become insolvent because each redemption settles at the live share rate against on-chain assets. | | Buffer is too small for normal partner traffic | Low | Medium | `setBufferBps` is governed by `OPERATIONS_MANAGER_ROLE` and can be tuned through the standard ops process. | | Failed receiver payout | Very low | Low | Deferred into `pendingQueuedAssets` and claimable via `claimQueuedAssets`. No XDC is lost. | *** ## Key Metrics for Partners All metrics below are verifiable on-chain via the [staking-v3-indexer](https://github.com/PrimeNumbersLabs/staking-v3-indexer) or direct calls to `PrimeStakedXDC_V3`. | Metric | Description | Source | | -------------------------- | -------------------------------------------------------- | --------------------------------------------------- | | **psXDC total supply** | Outstanding V3 shares | `PrimeStakedXDC_V3.totalSupply()` | | **Total assets** | XDC tracked by the vault (buffer + delegated) | `PrimeStakedXDC_V3.totalAssets()` | | **Exchange rate** | `totalAssets / totalShares` (or `convertToAssets(1e18)`) | Vault view | | **Buffer ratio** | Current liquid XDC vs target buffer | Computed from `getBalance` + `bufferBps` | | **Queue depth** | Outstanding `WithdrawalQueued` requests | Subgraph | | **Per-operator principal** | XDC delegated per masternode operator | `outstandingValidatorPrincipalByOperator(operator)` | | **DEX market price** | psXDC/XDC pool quote | XSWAP price feed | Partners evaluating large position sizes should review the **buffer** and **queue depth** in parallel with DEX pool depth, and reach out to discuss sizing. → [Reward Mechanics](/for-partners/reward-mechanics.md) → [Risk & Compliance](/for-partners/risk-and-compliance.md) → [Deployed Contracts & Addresses](/products/contract-addresses.md) --- # Agent Instructions This documentation is published with GitBook. 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