V2 vs V3: What Changed

The live vault is PrimeStakedXDC_V3_2 (0xDc74…c734). V2 remains available for stragglers to migrate via the migration bridge.

psXDC has moved from its original custodial contract (V2) to a fully non-custodial, ERC-4626 vault architecture (V3). This page explains what changed, why, and what it means for users and partners.

July 2026: the V3.1 redeploy

In July 2026 the V3 vault was redeployed as V3.1 to restructure how masternode collateral moves into the vault. What users need to know:

Balances carried over automatically. A snapshot captured every V3 holder's balance (including psXDC inside XDC NFTs, DEX pools, lending markets, and open limit orders) and the V31AirdropDistributor minted the same balances on V3.1. No user action was required.
Staking, withdrawals, and NFTs work exactly the same. V3.1 keeps the full ERC-4626 share design, self-service withdrawals, and the FIFO queue.
Masternode collateral migrates progressively. The XDC backing the vault is being moved from the legacy masternode fleet into the V3.1 vault on a rolling schedule (roughly one masternode per week). While this completes, the vault serves withdrawals from its on-hand liquidity plus dedicated team funding lanes; larger withdrawals may queue until the next liquidity tranche arrives. Share price (NAV) is protected during this phase; it cannot be written down by the transition mechanics.
The old V3 token is retired. Its bridge was cut to a dead address; the token has no remaining function.

Everywhere else in this page, "V3" refers to the live V3.1 architecture. The design is identical.

Why Migrate

V2 was the first generation of psXDC. It works, but its custodial design creates trust dependencies that limit adoption, particularly as collateral in DeFi lending markets. The core issues:

Withdrawals require admin approval: a user requests to withdraw, then the owner must manually approve each request before XDC is released
Custodial validator staking: the admin withdrew XDC from the contract and staked it into validators; staking happened on-chain but was entirely admin-controlled, so users had to trust the team to manage their funds
Owner can mint and withdraw: the contract has mint() and ownerWithdraw() functions that give the owner broad control over user funds
Rewards are manual: the owner must call notifyRewardAmount() to distribute rewards

These properties make V2 unsuitable for institutional use or as DeFi collateral, because a single admin key can unilaterally move funds.

V3 eliminates all of these trust assumptions.

Architecture Comparison

Aspect

V2 (Custodial)

V3 (Non-Custodial)

Standard

Custom staking + APY rewards

ERC-4626 tokenized vault

Token model

1:1 fixed ratio (1 psXDC = 1 XDC)

Share-based exchange rate (increases over time)

Reward distribution

Manual: owner calls notifyRewardAmount()

Automatic: exchange rate rises as validator rewards flow in

Reward claiming

Users must manually claim accrued rewards

No claiming; rewards are embedded in share price

XDC utilization

Custodial: admin withdrew XDC and staked with validators manually

Non-custodial: vault stakes directly with masternodes via smart contract, fully verifiable

Masternode integration

Custodial: admin managed validators manually

Direct non-custodial integration with XDC validator contract

Upgradeability

UUPS (owner-controlled upgrades)

None. PrimeStakedXDC_V3_2 is non-upgradeable. Deployed with a regular constructor, no proxy. The vault logic can never be modified.

Withdrawal Comparison

Aspect

User action

Call requestWithdraw()

Call redeem() or redeemWithQueue()

Admin approval

Required; owner must call approveWithdrawRequest()

Not required; self-service

Instant withdrawal

Not available

Yes, if sufficient liquid XDC exists in the buffer

Queue

Manual admin-managed

Automatic FIFO queue that processes as liquidity returns

Queue cancellation

Not available

Users can cancel pending requests at any time

DEX exit

Available (same in both versions)

V2 flow: Request → Wait for admin approval → Withdraw

V3 flow: Redeem → Receive XDC instantly (or enter automatic queue if liquidity is low)

Admin Privilege Comparison

This is the most significant change. V2 gives the owner sweeping powers. V3 eliminates them.

Capability

Mint new tokens

Yes, via mint(address, amount)

Disabled; mint() reverts

Withdraw contract funds

Yes, via ownerWithdraw(amount)

No such function exists

Set reward rate

Yes, via setRewardApy()

No manual rate; exchange rate is automatic

Approve individual withdrawals

Yes, via approveWithdrawRequest()

Not needed; withdrawals are self-service

Transfer ownership

Instant via transferOwnership()

Time-locked: schedule → wait → execute

Change roles

N/A (single owner)

Time-locked; all role changes require delay

Pause/unpause

Owner

Admin role

Reward Model Comparison

Aspect

How rewards enter

Owner calls notifyRewardAmount(reward) with XDC

Validator rewards flow directly into the vault

Distribution logic

Time-based APY: rewardRate * elapsed / totalStaked

Asset-based: exchange rate = totalAssets / totalShares

User experience

Claim rewards manually from Rewards tab

No claim; share value increases automatically

Transparency

Owner-controlled reward injection

Validator rewards verifiable on-chain via masternode contract

Risk

Owner sets APY and reward duration manually

Exchange rate driven by actual validator performance

NFT boost stream

N/A

XdcNftBoostHarvester.notifyBoost feeds a Synthetix-style accumulator inside the NFT vault, claimable separately

Security Comparison

Feature

Audit

QuillAudits

QuillAudits + Nethermind Security

Reentrancy protection

Yes

Yes (OpenZeppelin ReentrancyGuard)

Single point of failure

Yes (single owner key)

No (5 roles + time-locks)

Upgradeability

UUPS proxy

None; non-upgradeable

Governance delay

None

1-day minimum (configurable, max 30 days)

Loss caps

None

Configurable per-report + per-day caps, set via delayed governance

Principal tracking

None

Per-operator and global tracking

Admin can drain funds

Technically yes (ownerWithdraw, mint)

No; no such functions exist

No principal-stake slashing

Yes (XDC model)

Feature-by-Feature Summary

Feature

Stake XDC

Yes

Receive psXDC

Yes (1:1)

Yes (at exchange rate)

Self-service withdrawal

Yes

Withdrawal queue

Manual

Automatic (FIFO)

Cancel queued withdrawal

Yes

Masternode staking

Off-chain

On-chain

Auto-propose masternodes

Yes

Resign masternodes

N/A

Yes (with cooldown)

Share-based pricing

Yes

Liquidity buffer

Yes (configurable, default 5%)

Time-locked governance

Yes (all sensitive changes)

Role-based access control

No (single owner)

Yes (5 distinct roles)

Validator loss reporting

Yes (capped, operator-aware)

ERC-4626 compatible

Yes

DeFi composable (collateral)

Limited

Full

Migration bridge

N/A

Dedicated contract with slippage protection

What This Means for Users

Before (V2)

After (V3)

Deposit

Same: stake XDC, get psXDC

Same, but psXDC is now a yield-bearing vault share

Rewards

Claim manually from Rewards tab

Automatic: no action needed, share value grows

Withdraw

Request and wait for admin approval

Self-service: instant if liquidity available, queued otherwise

Trust

Trust the admin not to misuse mint() or ownerWithdraw()

Trust the code: no admin can move your funds, and the contract itself cannot be upgraded

DeFi use

Hold, trade, or stake in NFTs

Same + usable as collateral in lending protocols

Migration

N/A

One-time: approve + migrate via the V3 migration bridge

What This Means for Partners

psXDC becomes viable as DeFi collateral: the non-custodial design and ERC-4626 compliance make it suitable for lending markets and institutional integration
Reduced counterparty risk: no single admin key can affect user balances
Transparent validator economics: masternode operations are verifiable on-chain
Predictable governance: all changes are time-locked and visible before they take effect
Standard interface: ERC-4626 is the same vault interface used by major DeFi protocols, reducing integration effort

→ V3 Architecture Details → Institutional Overview

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