StakeXDCDocs
Security

Custody and key management

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

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


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.

Audit & Collaboration

StakeXDC'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 (the PrimeStakedXDC_V3 vault design + 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. The live vault, PrimeStakedXDC_V3_2, is a redeployment of this audited codebase. See the Audits page for the V3.2 delta and per-finding breakdown, or read the full report (PDF).


What This Means for Users

PropertyDetail
Custody modelSmart contract-based (no third-party custodian)
Key managementValidator keys secured by on-chain contracts
Human interactionEliminated from custody flows
VerifiabilityFully transparent and auditable on the blockchain
User action requiredNone - fully seamless

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.

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