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XDC Liquid Staking

XDC Liquid Staking lets you earn staking rewards on any amount of XDC, without running a node, meeting a minimum threshold, or locking your funds permanently. PrimeStaking V3 is a fully non-custodial, ERC-4626 vault: rewards accrue directly to the share price and withdrawals are self-service.


Key Facts

APY

~4.5% (accrued automatically through share price growth)

Minimum stake

None

Token received

psXDC, an ERC-4626 vault share (not a fixed 1:1 receipt)

Reward mechanism

Share price (totalAssets / totalShares) grows as validator rewards accrue

Claiming

No claim button; your shares are worth more XDC over time

Withdrawal

Self-service. Instant when the buffer is sufficient, otherwise queued with self-claim via claimQueuedAssets

DEX exit

Any DEX pool holding the live V3.2 token: sell psXDC for XDC at market

Smart contract

PrimeStakedXDC_V3_2 (non-upgradeable, audited)


How It Works

1. Stake

Deposit XDC through the staking interface at primestaking.xyz. No account setup or KYC required, just connect your wallet.

The vault mints psXDC shares for you at the current exchange rate. The app previews exactly how many shares you will receive before you sign.

2. Receive psXDC Shares

psXDC is an ERC-4626 vault share. There is no fixed 1:1 ratio:

  • At launch, 1 psXDC ≈ 1 XDC.

  • After rewards accrue, 1 psXDC > 1 XDC (e.g. 1 psXDC redeems for 1.05 XDC once the exchange rate has grown).

You don't need to manage two balances. The share is the only thing you hold, and it carries its value with it wherever you send it.

3. Earn Rewards Automatically

Validator rewards flow back into the vault and become part of totalAssets. Because the share supply doesn't change, each share is worth more XDC.

This is the same pattern Aave aTokens, Compound cTokens, and Lido wstETH use. There is no "Claim Rewards" button for liquid staking; your shares simply appreciate.

4. Use psXDC

psXDC is a standard ERC-20 on the XDC Network. While the vault earns yield, you can:

  • Hold to accumulate rewards passively (the share price keeps rising).

  • Trade on DEXs (typically paired with XDC).

  • Deposit into XDC NFTs to layer the boost slice on top of your NAV.

  • Use as collateral in DeFi protocols that support ERC-4626 vault tokens.

  • Bridge to Base, Arbitrum, BNB Chain, or HyperEVM (guide) and lend it on PrimeFi or LP it there — the staking yield keeps accruing the whole time (opportunities).

  • Transfer to any wallet; the recipient inherits the appreciating share automatically.

5. Withdraw

To convert back to XDC you have three options:

  • Instant redeem: when the vault's liquid buffer holds enough XDC to cover your request, the redemption settles in the same transaction. No queue, no waiting.

  • Queued redeem: when liquidity is constrained, your shares are escrowed and your request joins an automatic FIFO queue. As soon as new deposits or masternode payouts top up the buffer, the queue is processed and you call claimQueuedAssets to collect your XDC. You can also cancelQueuedWithdrawal at any time before settlement.

  • DEX exit: swap psXDC for XDC on a DEX (verify the pool holds the live V3.2 token) for immediate liquidity (subject to pool depth and market rate).

The app calls redeemWithQueue for you, which automatically picks the instant path when possible and falls back to the queue when not. You always see in advance which path your transaction will take.

Withdrawals: Instant vs QueuedRequest Withdrawal walkthrough


Reward Distribution

Detail
Explanation

Source

Staking rewards generated by the protocol's XDC Network masternode operators

Distribution

Reward XDC enters the vault → totalAssets increases → exchange rate rises → every psXDC share is worth more XDC

Claiming

No claim; accrual is embedded in the share price

Partial holdings

Any amount of psXDC earns yield; nothing is forfeited if you transfer or split balances


Getting psXDC

Two ways to obtain psXDC:

  1. Stake XDC: deposit through the staking interface to mint psXDC shares directly at the current exchange rate.

  2. Buy on a DEX: purchase psXDC on a decentralized exchange. Holding psXDC from any source benefits from the appreciating share price.


Migrating from V2

If you already hold the V2 psXDC token, the new vault is a separate contract and your V2 balance does not automatically appear in V3. You need to migrate through the dedicated bridge:

  1. Approve PrimeStakedXDC_V3MigrationBridge to spend your V2 psXDC.

  2. Call migrate(amount, minSharesOut). The bridge burns V2 and mints V3 shares.

  3. The migration page in the app calls this for you and lets you tune slippage (defaults to 0.5%).

Migrate V2 psXDC → V3


Technical Details

  • Smart contract-driven: every stake, redemption, and validator action is on-chain.

  • Validator-driven rewards: share price reflects the protocol's actual masternode performance, not an admin-set APY.

  • Non-upgradeable vault: PrimeStakedXDC_V3_2 has no proxy. The logic that holds your XDC can never be modified.

V3 ArchitectureV2 vs V3: What ChangedSmart Contract Reference


Benefits

  • No infrastructure: the protocol runs the masternodes.

  • No minimum: stake any amount of XDC.

  • Full liquidity: psXDC keeps your position liquid while earning rewards.

  • Composable: ERC-4626 makes psXDC drop-in compatible with DeFi protocols.

  • Non-custodial: no admin mint, no admin withdraw, no third-party custodian.

  • No principal-stake slashing: XDC's slashing penalizes downtime via temporary exclusion from block production (~2h) and missed rewards, but never burns principal, so staked capital is never at risk from validator behavior.

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