Noviscia Protocol Whitepaper

Version: 1.0 (Draft)
Last updated: June 2026
Status: Devnet operational · Mainnet target Q3 2026

Disclaimer: This document describes the Noviscia protocol design and current devnet implementation. It is not financial advice, an offer of securities, or a commitment to future features. Mainnet parameters may change after audit and community review.

Abstract

Noviscia is a zero-waste perpetual DEX on Solana. Traders deposit stablecoin margin once, trade USDC-settled perps, and earn yield on capital that would otherwise sit idle between trades. Idle margin is deployed across multiple lending venues; when a trader opens a position, funds are recalled atomically so margin is available without manual withdrawals.

The protocol separates yield-bearing margin (NVSCUSDC vault shares) from governance (NVSC). Trading fees and protocol yield feed a deflationary flywheel: USDC fees accumulate, NVSC is bought and burned, and stakers receive fee share plus governance over venue allocation.

1. Problem

Perpetual DEX users typically face a trade-off:

Capital efficiency is left on the table. Noviscia treats margin as a productive asset inside the trading stack—not a separate earn product.

2. Solution

One deposit → trade → earn → recall → trade again.

USDC
  → NVSCUSDC Vault (optional)     mint yield-bearing shares at NAV
  → Escrow PDA (non-custodial)      user-owned margin account
  → Idle lend (keeper)              deploy free USDC to venue pools
  → Recall (atomic)                 before perp open
  → Perps (position-tracker)          long/short with oracle marks
  → Close & settle                    PnL + fees routed on-chain
  → Claim yield / stake / govern      85% user yield; NVSC flywheel

Design principles

1. Non-custodial — User funds live in program-derived escrow accounts; the protocol never takes discretionary custody.
2. Atomic recall — Opening a perp triggers recall of lent margin in the same transaction flow where required.
3. Dual-token clarity — NVSCUSDC earns and margins; NVSC governs and captures fee share. No vote inflation from yield shares.
4. Transparent allocation — Venue weights are rules-based with optional local AI advisory; stakers govern on-chain caps.
5. Local-first AI — Optional Ollama agents for yield routing and risk; no mandatory cloud APIs.

3. Architecture

3.1 On-chain programs

3.2 Off-chain services

3.3 Oracle & marks

• Dual oracle (Pyth + optional Switchboard) with on-chain consensus in position-tracker.
• Keeper publishes prices; marks must match oracle consensus.
• Live devnet markets: SOL-PERP, BTC-PERP, ETH-PERP (catalog-driven; see perps-catalog.json).

3.4 Collateral tiers

4. Token economics

4.1 NVSCUSDC (yield margin share)

NVSCUSDC is the primary margin asset for capital-efficient perps: shares in escrow accrue vault NAV while not reserved for open positions.

4.2 NVSC (governance & utility)

Planned distribution (subject to change pre-TGE):

4.3 Fee flows

Burn loop: USDC accumulates in burn-engine → keeper swaps USDC→NVSC off-chain → trigger_burn destroys NVSC on-chain.

5. Trading

5.1 Perpetual markets

• Settlement: USDC-denominated PnL.
• Margin: NVSCUSDC (default) or USDC in escrow.
• Leverage: Up to 50× on majors (SOL/BTC/ETH per catalog); lower caps on memecoins when enabled.
• Markets: Catalog in app/web/app/lib/perps/perps-catalog.json; tradeable: true requires oracle PDA + keeper marks.

5.2 User flow (devnet)

1. Deposit USDC → mint NVSCUSDC (optional) or deposit USDC directly to escrow.
2. Enable idle lending (USDC path) or hold NVSCUSDC shares in escrow.
3. Select market (SOL / BTC / ETH live).
4. Open long or short — protocol recalls lent USDC if needed.
5. Keeper updates marks; user closes → fees split to burn/staking.

5.3 vs typical perps

6. Yield allocation

The Noviscia Allocator routes idle escrow USDC across labeled venues (Kamino, Solend, Marginfi):

• Rules engine — Transparent coefficients (ALLOCATION_POLICY.md).
• Keeper — Executes lend_idle_venue on eligible escrows.
• Governance — NVSC stakers vote venue weights via set_venue_weights_governed.
• AI layer (optional) — Local Ollama suggests weights; rules engine validates; never sole authority.

Devnet today: Internal venue pools (lend_mode = internal). Mainnet: External Kamino/Solend/Marginfi CPI (lend_mode = external) after audit.

7. Governance

NVSC stakers can:

• Create and vote on proposals (venue weights, cash buffer).
• Execute passed proposals on-chain.
• Receive 60% of perp trading fees (USDC) into the staking fee pool.

NVSCUSDC holders do not vote—preventing double influence from yield capital.

8. Security model

• PDA escrow per user; no pooled custodial wallet.
• Oracle consensus required for marks; deviation caps on-chain.
• Maintenance margin + keeper liquidation.
• CPI boundaries — Escrow, vault, lending, burn, and staking programs invoked with explicit account constraints.
• Pre-mainnet: Independent security audit required (not yet completed in repo).

See SECURITY.md for operational guidance.

9. AI layer (optional)

Noviscia ships an optional, local-first AI stack:

No cloud LLM is required. Production deployments can disable AI entirely (AI_YIELD_ROUTER_IN_KEEPER=0).

10. Roadmap

Full checklist: LAUNCH_ROADMAP.md.

11. Risks

12. Appendix

Devnet program IDs (June 2026)

Related documents

• USER_GUIDE.md — How to use the app on devnet
• TOKENOMICS.md — Token separation reference
• LAUNCH_ROADMAP.md — Launch phases and checklist
• DEVNET.md — Operator runbook
• ARCHITECTURE_V2.md — Technical architecture

Noviscia — The New Science of Capital Efficiency