PrimeStakedXDC (psXDC)

psXDC Deposits on the XDC Network

PrimeFi now supports psXDC as a supply and borrow asset on the XDC Network. psXDC is the liquid‑staking token (LST) from PrimeStaking that accrues XDC staking rewards while you hold it.

When you deposit psXDC on PrimeFi, you receive ppsXDC, PrimeFi’s interest‑bearing receipt token. ppsXDC is a rebase token—its balance increases automatically as rewards are distributed.

Important: If you deposit psXDC into PrimeFi, you will not claim staking rewards directly at primestaking.xyz. Instead, the PrimeFi psXDC pool claims those rewards on‑chain and redistributes them to ppsXDC holders via rebases. You still earn the underlying staking yield—plus PrimeFi incentives.

Contracts & roles

  • ppsXDC (receipt/rebase token): 0x834695A5d33967f8cC27E6d15684c0aA36cA4375 Add this token to your wallet to watch your rebasing balance.

  • PrimeStaking (primestaking.xyz): liquid staking that mints psXDC from XDC and produces staking rewards.

  • PrimeFi (primefi.xyz): lending & borrowing that mints ppsXDC when you supply psXDC and routes rewards + incentives.

What you earn when you deposit psXDC

Your psXDC deposit on PrimeFi earns three streams of yield, all accruing to ppsXDC holders:

  1. LST base yield (from psXDC) The psXDC inside the PrimeFi pool continues to generate XDC staking rewards via PrimeStaking. PrimeFi claims those rewards and rebases them to ppsXDC.

  2. Extra PRFI incentive (3–4% APY, variable) An additional reward paid in PRFI for psXDC suppliers.

  3. Platform & pLP incentives (variable) Additional incentives are shown in the app UI. These change with program parameters and utilization.

Live APYs are variable—always rely on the rate shown in the PrimeFi app.

Why ppsXDC yield can change: Coverage Ratio

Only the psXDC actually held by the PrimeFi pool contract generates staking rewards for rebase. If users borrow psXDC out of the pool or loop by re‑depositing borrowed psXDC (minting more ppsXDC), then ppsXDC supply can exceed psXDC in the pool. That dilutes the LST component of the deposit APY.

Coverage Ratio

Coverage Ratio = (psXDC balance in the PrimeFi pool contract) / (total ppsXDC supply)

  • 1.00 → ppsXDC captures ~100% of psXDC’s base LST yield.

  • 0.85 → ppsXDC captures ~85% of psXDC’s base LST yield (diluted).

Total Deposit APY (simplified)

Total Deposit APY ≈ [Base psXDC APY × Coverage Ratio] + [PRFI APY] + [platform/pLP APY]

Because looping can increase ppsXDC supply and reduce Coverage Ratio, heavy looping lowers the LST portion of yield for everyone (including the looper).

Users can borrow psXDC and re‑deposit it, minting additional ppsXDC. Because borrowed psXDC is no longer held by the pool, the Coverage Ratio drops, so the 6%+ LST yield gets diluted across more ppsXDC.

Supported assets (XDC market)

As shown in the current market: XDC, psXDC, USDC, USDT, PRFI. Supply/borrow caps, APYs, and utilization are visible in the app and change over time.

How deposits, rewards, and withdrawals work

  1. Deposit psXDC → receive ppsXDC

    • Connect on XDC Network and approve psXDC.

    • Supplying psXDC mints ppsXDC 1:1 (subject to the vault’s current exchange mechanics). ppsXDC is rebase: your balance increases as rewards are distributed.

  2. Rewards distribution

    • The pool contract claims psXDC staking rewards from PrimeStaking and re‑distributes them to ppsXDC holders via rebase.

    • PRFI incentives and platform/pLP incentives are added on top (see the Rewards panel in the UI for your accrued amounts).

  3. Withdraw Redeem ppsXDC to withdraw psXDC (subject to pool liquidity). Because ppsXDC rebases, you don’t need to claim the LST portion—your ppsXDC balance grows over time and you redeem more psXDC.

Wallet tip: Some wallets refresh rebase balances only on activity. If your ppsXDC display looks stale, a tiny self‑transfer can refresh it. Gas is paid in XDC.

Borrowing, looping, and strategies

PrimeFi is a lending & borrowing protocol. You can deposit psXDC, borrow against it, and optionally loop (lever up) by re‑depositing what you borrow. This increases your exposure to deposit APY but also increases borrow costs and liquidation risk. Because psXDC is intended to be ~1:1 with XDC, same‑asset loops reduce price risk but do not remove interest‑rate or depeg risk.

Critical: Looping often lowers the LST portion of your deposit APY for everyone by pushing down the Coverage Ratio (see above). It can also make borrow APR spike when utilization is high. Always check live rates.

Common loop patterns

A) psXDC → borrow psXDC → re‑deposit (same‑asset loop)

  1. Deposit psXDC.

  2. Borrow psXDC against it.

  3. Re‑deposit the borrowed psXDC to mint more ppsXDC.

  4. Repeat until you reach your target health factor/risk.

  • Pros: Simple; minimizes price basis mismatch.

  • Cons: Pushes Coverage Ratio down (diluting everyone’s LST yield, including yours) and exposes you to psXDC borrow APR spikes. If psXDC briefly trades away from its intended peg, you can face unexpected PnL or collateral value changes.

B) psXDC → borrow XDC → stake to psXDC → deposit (cross‑asset loop)

  1. Deposit psXDC.

  2. Borrow XDC.

  3. Stake the borrowed XDC at PrimeStaking to mint psXDC.

  4. Deposit the new psXDC back into PrimeFi.

  • Pros: May be attractive if XDC borrow APR is lower than psXDC borrow APR.

  • Cons: Adds staking/unstaking frictions, extra transactions and gas, and potential timing/price basis risk between XDC and psXDC. Still reduces Coverage Ratio once the added psXDC is re‑deposited.

Loop math & break‑even

Let:

c    = collateral factor / target LTV (e.g., 70% = 0.70)
L    = 1 / (1 - c)                  # supply leverage
B    = c / (1 - c)                  # borrow leverage
Ydep = (Base psXDC APY × Coverage Ratio) + PRFI APY + platform/pLP APY − frictions
Yb   = borrow APR on the asset you borrow (psXDC or XDC)

Break‑even condition

Looping is profitable  ⇔  Ydep > (c × Yb)

Approximate net APY on your equity

Ynet ≈ (L × Ydep) − (B × Yb)

Worked examples (illustrative only)

Example 1 — Same‑asset loop (psXDC → psXDC)

Assumptions:

  • c = 70% → L = 3.33×, B = 2.33×

  • Base psXDC APY = 6.0%

  • Coverage Ratio = 0.85

  • PRFI APY = 3.5%

  • platform/pLP APY = 1.0%

  • psXDC borrow APR Yb = 16.0%

Calculations:

Ydep = (6.0% × 0.85) + 3.5% + 1.0% = 9.6%
Break-even: c × Yb = 0.70 × 16.0% = 11.2%  → not met
Ynet ≈ (3.33 × 9.6%) − (2.33 × 16.0%) = 32.0% − 37.3% ≈ −5.3%  (unprofitable)

Takeaway: With high psXDC borrow APR and diluted Coverage Ratio, looping loses versus a simple deposit.

Example 2 — Cross‑asset loop (psXDC → borrow XDC → stake to psXDC → deposit)

Assumptions:

  • c = 70% → L = 3.33×, B = 2.33×

  • Base psXDC APY = 6.0%

  • Coverage Ratio = 0.92 after adding new psXDC

  • PRFI APY = 3.5%, platform/pLP APY = 1.0%, frictions = 0.5%

  • XDC borrow APR Yb = 9.0%

Calculations:

Ydep = (6.0% × 0.92) + 3.5% + 1.0% − 0.5% = 9.5%
Break-even: c × Yb = 0.70 × 9.0% = 6.3%  → met
Ynet ≈ (3.33 × 9.5%) − (2.33 × 9.0%) = 31.7% − 21.0% ≈ +10.7%  (profitable under these inputs)

Takeaway: When XDC borrow APR is materially below psXDC’s and frictions are small, a cross‑asset loop can work. Small changes in borrow APR or incentives can erase this edge—stress‑test before levering up.

Practical looping tips

  • Keep a safety buffer. Health factor can fall from price moves, parameter changes, or rising borrow APRs.

  • Watch Coverage Ratio. The Deposit APY in the app already reflects Coverage Ratio and incentives—use it as your ground truth.

  • Borrow APR is dynamic. Utilization spikes can push APR higher and flip a positive spread negative.

  • Mind frictions. Cross‑asset loops add transactions, gas, staking time, and potential slippage/peg risk.

  • Stress‑test. If borrow APR +5–10% or incentives −2–3%, do you stay positive? If not, de‑leverage.

Step‑by‑step: deposit psXDC and earn

  1. Connect wallet on XDC Network and hold psXDC (+ a small amount of XDC for gas).

  2. Approve and supply psXDC in the PrimeFi psXDC market.

  3. Receive ppsXDC (rebase). Optionally add 0x834695A5d33967f8cC27E6d15684c0aA36cA4375 to your wallet.

  4. Monitor the Deposit APY (LST effective yield + PRFI + platform/pLP).

  5. Claim PRFI/platform rewards from the app as they accrue (ppsXDC rebases automatically).

  6. Withdraw by redeeming ppsXDC for psXDC (subject to pool liquidity).

FAQ

Does ppsXDC supply sometimes exceed psXDC in the pool? Yes. Borrowers can re‑deposit psXDC and mint more ppsXDC while the borrowed psXDC leaves the pool. This reduces Coverage Ratio and dilutes the LST component.

Why is psXDC deposit APY sometimes below ~6%? Because Coverage Ratio < 1 when psXDC is heavily borrowed/looped; the base LST yield is spread across more ppsXDC.

Why is my ppsXDC balance increasing without claims? ppsXDC is a rebase token. Staking rewards from PrimeStaking and pool incentives are applied as supply increases to ppsXDC.

Do PRFI incentives compound into ppsXDC? No. PRFI is a separate incentive you claim in the app. The LST portion compounds via ppsXDC rebases.

Can I withdraw anytime? Yes—subject to pool liquidity. High utilization may require waiting for liquidity to free up or repaying borrows.

Risks & disclaimers

APYs/APRs are variable and depend on utilization, incentives, and market conditions. Risks include interest‑rate risk (borrow APR spikes), liquidation risk, psXDC/XDC peg deviations, incentive program changes, and liquidity constraints on withdrawal. Nothing here is financial advice.

TL;DR

  • Deposit psXDC → receive ppsXDC (rebase).

  • PrimeFi claims psXDC staking rewards and distributes them to ppsXDC holders.

  • You also earn PRFI (3–4% APY) + platform/pLP incentives.

  • ppsXDC can exceed psXDC in the pool due to borrowing/looping, which dilutes the LST portion (Coverage Ratio ↓).

  • Looping only makes sense when Deposit APY > (collateral factor × borrow APR), and it increases risk.

PreviousLiquid Staking TokensNextAudits

Last updated