XDC Vaults
XDC Vaults: Integral to the Liquid Staking System
XDC Vaults are integral to the XDC Liquid Staking System, providing a secure and efficient mechanism for staking $XDC tokens and receiving staking derivatives ($pstXDC). These vaults simplify the staking process, remove traditional barriers, and unlock new opportunities for XDC holders.
What Are XDC Vaults?
XDC Vaults are on-chain smart contract-based storage solutions where users deposit their $XDC tokens for staking. Upon depositing, users receive $pstXDC, a liquid staking derivative representing their staked $XDC.
Key Features
Staking Interface:
XDC Vaults are the liquid staking system's gateway for staking $XDC.
Users can mint a Vault directly from the staking platform and deposit their $XDC tokens. It costs only 100 XDC to mint an XDC Vault.
$pstXDC Minting:
Once $XDC tokens are deposited, the vault automatically issues an equivalent amount of $pstXDC to the user’s wallet.
The $pstXDC tokens maintain a 1:1 ratio with staked $XDC and serve as proof of ownership.
Rewards Accrual:
While $XDC is locked in the Vault, it participates in the masternode system to generate staking rewards.
Rewards are credited periodically to the user’s Vault and reflected in the overall balance of staked tokens.
Liquidity Through $pstXDC:
$pstXDC tokens are liquid and can be used in various DeFi applications, such as lending, trading, or providing liquidity.
Non-Locked: Users can use $pstXDC at any time to withdraw their original $XDC and accumulated rewards.
Flexible Exit:
Upon unstaking, $pstXDC is burned, and the equivalent amount of $XDC is returned to the user’s wallet.
Guide for Claiming Rewards
To get rewards, the user must claim them every month after the protocol sends them to the contract, usually on the last day of the month. Users should monitor the platform for updates on reward availability.
Claiming Rewards:
To claim rewards, the user must hold 100% of the $pstXDC at the moment of claiming.
Rewards will not be available for partial $pstXDC holders, ensuring a fair distribution mechanism based on full ownership.
Transferring XDC Vaults:
If you transfer an XDC Vault, you must hold 100% of the $pstXDC associated with that Vault at the time of transfer.
During the transfer process, the $pstXDC tokens will be automatically transferred along with the Vault, ensuring continuity of staking and reward eligibility for the new owner.
How to Use XDC Vaults
Mint an XDC Vault:
Navigate to the XDC Staking platform and select the option to mint a new Vault.
Confirm the transaction.
Deposit $XDC Tokens:
Transfer the desired amount of $XDC into the Vault through the staking platform interface.
Confirm the deposit transaction.
Receive $pstXDC:
Upon deposit, $pstXDC tokens are automatically issued to your wallet.
Manage Rewards and Withdrawals:
Monitor your Vault for accrued staking rewards.
To withdraw, use your $pstXDC, and your original $XDC plus rewards will be returned to your wallet.
Technical Details
Reward Mechanism:
Rewards are calculated dynamically and distributed directly to Vault balances.
Transparency:
All Vault transactions are recorded on-chain, providing users with a clear and auditable trail of their staking activity.
Benefits of XDC Vaults
Simplified Staking Process:
XDC Vaults eliminate the need for complex setups or high entry barriers, making staking accessible to all users.
Liquidity with $pstXDC:
$pstXDC provides flexibility, enabling users to participate in DeFi while their $XDC continues to earn rewards.
No Hosting Costs:
The system removes the technical requirements of masternode hosting, saving time and expenses.
Scalability:
XDC Vaults are designed to support a large number of users and adapt to protocol upgrades seamlessly.
Future Integrations
DeFi Applications:
$pstXDC tokens will integrate with lending platforms, decentralized exchanges, and other DeFi protocols to enhance utility.
Enhanced Features:
Additional functionalities, such as automated reward compounding and multi-asset staking, are planned for future releases.
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