Custody & Key Management

PrimeStaking uses a permissionless, smart contract-based validator custody model - eliminating human interaction from custody flows entirely.

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How It Works

• Smart contract-based execution - validator keys and staked XDC are managed entirely by audited smart contracts, with no human interaction in custody flows.

• Permissionless - anyone can verify the state of validators and staked assets on-chain. No centralized approval required.

• Trustless - no single entity controls the keys. The protocol enforces custody rules through code, not operational trust.

• Institutional-grade transparency - full operational transparency aligned with institutional security standards.

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Audit & Collaboration

PrimeStaking's custody infrastructure is developed in collaboration with:

• Nethermind — smart contract development and security review

• XDC Core team — network-level validator integration

The custody substrate (PrimeStakedXDC_V3 vault + PrimeStakedXDC_V3MigrationBridge) was independently audited by Nethermind Security in audit NM-0843, XDC Prime Stake (final report May 08, 2026). All Critical, High, and Medium findings are Fixed; the three Acknowledged findings are operationally mitigated. Read the full report (PDF) or see the Audits page for the per-finding breakdown.

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What This Means for Users

Property	Detail
Custody model	Smart contract-based (no third-party custodian)
Key management	Validator keys secured by on-chain contracts
Human interaction	Eliminated from custody flows
Verifiability	Fully transparent and auditable on the blockchain
User action required	None - fully seamless

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Impact on Users

• Users retain full ownership of their assets at all times.

• Smart contract-based custody eliminates reliance on any centralized custodian, strengthening the protocol's decentralization.

• In V3, withdrawal UX has improved: redemptions settle instantly when the vault's liquid buffer permits, and otherwise enter a permissionless FIFO queue users can self-claim (claimQueuedAssets). The upper bound for queue settlement is the XDC Network's candidateWithdrawDelay — approximately 35 days under typical block times.

• The psXDC v3 vault is non-upgradeable, so the contract that holds your XDC cannot be modified by anyone. Only the NFT staking vault is upgradeable, and only through multisig + delayed governance.