Your XDC goes into the vault and psXDC is minted to your wallet at the current share price. No approval step for native XDC.

Masternode rewards are distributed into the vault about once a month. The share price steps up; your psXDC balance does not change, its value does.

psXDC is a normal token. Redeem it any time: instantly when the vault is liquid, through the queue when it is not. How it works