StakeXDCDocs
Liquid staking

How rewards work

Masternode rewards are distributed into the vault roughly monthly. Each distribution steps up the psXDC share price for every holder; there is nothing to claim. Target ~4.5% APY, not guaranteed.

Rewards on StakeXDC are not paid out to you; they are paid into the vault. Roughly once a month the operations team distributes the period's masternode rewards, and the psXDC share price steps up for every holder at once. Your psXDC balance never changes; what each psXDC is worth in XDC does.


Where the yield lives

The yield lives in the PrimeStakedXDC_V3_2 share price. Every psXDC holder earns it automatically, in proportion to the shares they hold, with no claim step.


Share-price growth

When masternode rewards are distributed 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.

How a distribution reaches the share price. The operations manager credits rewards through a dedicated reward lane (distributeRewards), which raises the share price for every holder. 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. For the accounting details see the Vault architecture and the Smart contract reference.

AspectDetail
Target APY~4.5%, not guaranteed
MechanismExchange rate appreciation
When you receive itThe rate steps up when the operations team distributes the period's masternode rewards into the vault (distributeRewards(), roughly monthly, sized to the 4.5% target on average TVL)
User action requiredNone. There is no "claim rewards" button

A flat exchange rate between distributions 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 ~4.5% target 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. (Illustrative figures; the target is not a guarantee.)

This is the same model used by Aave aTokens, Compound cTokens, and Lido wstETH.


Why there is no claim button

  • No separate reward cycle: unlike a classic staking-rewards contract, 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.

Every distribution is a public transaction on the vault. The app lists them in the Rewards history card and draws them as steps in the Share price chart; see Understanding the share price.

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