> For the complete documentation index, see [llms.txt](https://docs.primefi.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.primefi.xyz/product/liquid-staking-tokens/primestakedxdc-psxdc.md). # PrimeStakedXDC (psXDC) ## psXDC Deposits on the XDC Network **PrimeFi** now supports **psXDC** as a supply and borrow asset on the **XDC Network**, **Base** and **HyperEVM**.\ **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 * **psXDC (underlying, XDC):** `0xDc74c0DaED82ae94486DeeF22991d2F54173c734` * **ppsXDC (receipt token, XDC):** `0x3Bd0183584185F8341B83dDefD73E6Eae1a64eeF`\ Add this token to your wallet to watch your 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. {% hint style="info" %} Earlier psXDC token versions were migrated as the PrimeStaking vault was upgraded. Old psXDC reserves on PrimeFi are **frozen** (withdraw/repay only). If you still hold a deprecated version, withdraw and migrate at primestaking.xyz. {% endhint %} *** ### psXDC on Base and HyperEVM psXDC is a **LayerZero OFT**, so it also lives natively on **Base** and **HyperEVM** at the same address: `0x98D916F5773Ac0482b49856f2659d6c32114C4Ba`. Every psXDC on Base/HyperEVM is backed 1:1 by real psXDC locked on XDC. You can supply and borrow psXDC on both chains' PrimeFi markets: | Chain | ppsXDC (receipt) | vdpsXDC (variable debt) | | -------- | -------------------------------------------- | -------------------------------------------- | | Base | `0x3A577f9789FC81C2Ea0B81B9e02B6Dbc67158A37` | `0xD9bA32E8a4955E4fbbbDD61F121b2f81ca7bBFE8` | | HyperEVM | `0x1952dD6d79A7ab0419321e0669B1BdF4dF1490E5` | `0x11f7467591b3E9e7B4d97e0827dCAaE51e46d373` | * Collateral parameters on Base/HyperEVM: **LTV 20%**, liquidation threshold 80%, liquidation bonus 7.5%. * psXDC is priced at the **XDC/USD** feed on these chains (1 psXDC ≈ 1 XDC). * To move psXDC between chains, use the bridge at primestaking.xyz (LayerZero, \~2–5 min). *** ### 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 `0x3Bd0183584185F8341B83dDefD73E6Eae1a64eeF` 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.