FAQ

General Questions

What is XDC Liquid Staking?

XDC Liquid Staking enables you to stake XDC while retaining full liquidity. Instead of locking up your tokens, you receive psXDC (Prime Staked XDC), an ERC-4626 vault share that can be freely used or traded in DeFi.

• XDC Liquid Staking: A straightforward way to stake XDC and receive psXDC vault shares, with no minimum required. Earns ~5.5% APY through share-price appreciation.

What is psXDC?

psXDC is an ERC-4626 vault share representing your position in the V3 staking vault. You don't claim rewards separately. The share grows in value over time (totalAssets / totalShares increases as validator rewards accrue), so each psXDC is worth more XDC the longer you hold it.

Where can I trade psXDC?

psXDC can be traded on DEXs on the XDC Network, paired with XDC. After the July 2026 V3.1 redeployment, verify any pool holds the live token (0xDc74…c734); pools created before the redeployment hold retired tokens. Purchasing psXDC directly also benefits you, since holding it means owning the appreciating share.

Can I use psXDC outside the XDC Network?

Yes. psXDC bridges to Base, Arbitrum, BNB Chain, and HyperEVM via LayerZero from the Bridge page — no third-party custodian, no bridge fee beyond the LayerZero message cost, and your staking yield keeps accruing while bridged. On Base and HyperEVM it is already listed as collateral on PrimeFi, so you can lend it or borrow against it without unstaking. See Bridge psXDC and Multichain Opportunities.

I held psXDC V3 before July 2026. Do I need to do anything?

What happens when I unstake?

When you decide to unstake, you burn the corresponding psXDC shares. The app calls redeemWithQueue which:

• Settles instantly when the vault's unencumbered liquidity covers your request. XDC returns to your wallet in the same transaction.
• Enters a permissionless FIFO queue otherwise: your shares are escrowed and a request is created. The queue is paid from a dedicated budget (queueBackingBudget) that the team tops up as masternode principal is unwound and returned — new deposits refill the instant buffer, not the queue. For very large redemptions the upper bound is the network's candidateWithdrawDelay, approximately ~35 days under typical block times.

You can cancel queued requests any time, and if a payout ever fails the XDC lands in pendingQueuedAssets so you can collect it via claimQueuedAssets.

A queued request's payout is not frozen at the day you queued: your psXDC stays escrowed as shares and the vault pays previewRedeem(shares) at the exchange rate of the moment the request is processed, so reward distributions that land while you wait still reach you. The queue is paid in FIFO order from a dedicated budget; a request the budget cannot yet cover is passed over and retried on the next pass (never cancelled), which is why smaller requests can occasionally settle before larger, older ones.

→ Withdrawals: Instant vs Queued

Can I transfer my staking position?

Yes.

• Liquid Staking: Send psXDC to another address; the recipient inherits the appreciating share. No further action needed.

How are rewards distributed?

Is there any risk of slashing?

XDC Network does have a slashing mechanism, but it differs fundamentally from Ethereum's. A masternode that fails to sign any block during one full epoch (900 blocks, ~30 minutes) is excluded from block production for the next 4 epochs (~2 hours) and forfeits rewards during that window. Crucially, principal stake is not burned: staked capital is never destroyed by validator behavior. For psXDC holders this means a slashing event on a protocol masternode would only briefly slow the rate at which the share price grows during the exclusion window; it cannot reduce the value of the shares themselves. This is structurally different from Ethereum-based liquid staking, where slashing can permanently destroy a portion of staked ETH.

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XDC Liquid Staking

How does Liquid Staking work?

1. Stake XDC through the V3 vault (stake() payable, or depositNative(assets, receiver)).
2. Receive psXDC shares at the current exchange rate.
3. Watch the share price grow. Rewards are embedded in the share. No claim needed.
4. Withdraw by calling redeemWithQueue: instant when the buffer covers it, queued FIFO otherwise. Or swap on a DEX for an immediate market exit (verify the pool holds the live V3.2 token).

Who can participate?

Anyone. There is no minimum XDC required. It's accessible to all XDC holders.

How do I withdraw my staked XDC?

You have two options:

• Protocol redemption (redeemWithQueue): burns the equivalent psXDC shares. Instant when the vault's liquid buffer permits, otherwise enters the on-chain FIFO queue with self-claim via claimQueuedAssets. You can cancel queued requests at any time before settlement.
• Instant DEX exit: swap psXDC for XDC on a DEX (verify the pool holds the live V3.2 token) for immediate liquidity at market price.

Can I transfer my Liquid Staking position?