How rewards work
When XDC validator rewards flow back into the vault, totalAssets() increases while the total share supply stays the same. The vault's exchange rate (totalAssets / totalShares) g…
Two layers of yield
| Layer | Where it lives | Who earns it | How you receive it |
|---|---|---|---|
| Base NAV | PrimeStakedXDC_V3_2 vault share price | Every psXDC holder | Automatic: share price rises as validator rewards accrue. No claim. |
Base layer: share-price growth
When XDC validator rewards flow back into the vault, totalAssets() increases while the total share supply stays the same. The vault's exchange rate (totalAssets / totalShares) goes up, so every psXDC share becomes worth more XDC.
V3.2 permanent-ledger model. In V3.2 the operations manager credits rewards through a dedicated reward lane (distributeRewards), which raises the share price for every holder. Rewards accrue at any backing level - there is no "fully backed" gate. An optional, hard-capped protocol fee (0% by default, max 20%) can be skimmed per distribution. The share price only ever moves up through this lane; there is no code path that writes it down outside of a rate-limited, risk-manager-only validator-loss report.
| Aspect | Detail |
|---|---|
| Target APY | ~5.5% |
| Mechanism | Exchange rate appreciation |
| When you receive it | The rate steps up when the operations team distributes the period's masternode rewards into the vault (distributeRewards(), roughly monthly, sized to the 5.5% target on average TVL) |
| User action required | None. There is no "claim rewards" button |
A flat exchange rate between payouts is normal. Rewards reach the vault in roughly monthly distributions, not block-by-block. Between those distributions the psXDC rate stays flat — that is the payment cadence, not missing rewards. The ~5.5% APY is the annualized result of those steps; the distribution for a period covers every day of it, so a later payout is not a smaller payout.
Example. Stake 1,000 XDC when the exchange rate is 1.00. You receive 1,000 psXDC shares. Six months later the rate is 1.025. You burn your 1,000 shares and the vault returns 1,025 XDC. Your 25 XDC of yield was inside the price the whole time.
This is the same model used by Aave aTokens, Compound cTokens, and Lido wstETH.
Combined targets
Why no claim button for liquid staking
- No
notifyRewardAmount+ claim cycle: the operations manager distributes the period's validator rewards into the vault (distributeRewards, roughly monthly) and the exchange rate updates for every holder at once. - No
claim: your reward is already inside the share. When you redeem the share, you receive both the principal and the accrued reward in one transaction.
Request a withdrawal
V3 withdrawals are self-service: there is no admin approval step and no fixed queue time. Every withdrawal goes through redeemWithQueue, which automatically picks the fastest pa…
Understanding the share price
The V3 vault is an ERC-4626 share contract. When validator rewards flow in, the vault's totalAssets increases but the total psXDC share supply does not, so the exchange rate tot…