Technical Deep Dive

Smart Contract Security

NUVA leverages industry-leading security standards through rigorous audits by top-tier security firms and battle-tested contract implementations.

Vault Contract Mechanics

Deposit flow

When users deposit USDC into a vault:

1. User approves the vault contract to spend their USDC

2. User initiates deposit transaction specifying amount and target vault

3. Vault contract receives USDC and verifies the transaction

4. Contract calculates nvAsset tokens to mint based on current token price

5. nvAsset tokens are minted and transferred to user's wallet

Asset Management

All deposited USDC is held directly in the vault contract address on Ethereum Mainnet.

Internal ledger tracks:

• Total USDC deposited and allocated to underlying assets

• Complete nvAsset token supply and individual user balances

• Real-time yield accrual and distribution

Administrative Controls

• Multisig wallets control administrative functions to prevent single points of failure

• Functions include rebalancing allocations, processing yield distributions, and managing vault parameters

nvAsset Token Mechanics (ERC-20 Standard)

Token Minting Process

Formula: nvAsset tokens Minted = USDC Deposited ÷ Current nvAsset Token Price

Token price calculation: Total Underlying Assets ÷ Total Outstanding nvAsset tokens

Initial nvAsset tokens are priced at $1.00 (1:1 USDC ratio for early depositors)

Yield Reflection Through Price Appreciation

As underlying assets generate yield, nvAsset token prices increase automatically. Example of token price appreciation:

• Deposit: $10,000 USDC → Receive 10,000 nvYLDS tokens

• After 1 year at 4% yield: Vault contains $10,400 total value

• New token price: $1.04 (10,400 ÷ 10,000 tokens)

• User position value: $10,400 (earned $400 yield with no new tokens received)

Continuous Yield Compounding

On-Chain Accrual Mechanism

• Yield accrues continuously as underlying assets generate returns

• nvAsset token prices update in real-time reflecting total asset growth

• Compounding occurs automatically without user intervention

Withdrawal Process

Settlement Timelines

• nvYLDS: Typically minutes, possibly up to 2 U.S. business days

• nvPRIME: Coming soon

Withdrawal Execution

• User specifies nvAsset tokens to withdraw

• Contract calculates USDC owed: nvAsset tokens × Current Token Price

• Upon settlement confirmation: nvAsset tokens are burned (removed from supply), USDC transferred to user wallet and Transaction recorded on-chain

Contract Addresses (Ethereum Mainnet)

Security Audits

Completed Audits

NUVA works with leading security firms including Sherlock and Halborn to ensure smart contracts meet institutional security standards.

Sherlock Audit (Completed December 2025)

Scope: Ethereum vault contracts, Provenance vault module, token mechanics, access controls

Status: All critical and high-severity findings resolved

Report: Click here

Findings summary:

Zero unresolved security issues across all severity levels, indicating NUVA's smart contracts meet institutional security standards and are ready for production deployment. This demonstrates NUVA's commitment to comprehensive security practices and thorough remediation of all audit findings before launch.

Halborn Audit (Completed January 2026)

Timeline: December 2025 - January 2026

Scope: Additional contract validation and security assessment

Status: No critical, high and medium-severity issues found. All low-severity issues resolved

Report: Click Here

Findings summary:

Zero unresolved security issues across all severity levels, indicating NUVA's smart contracts meet institutional security standards and are ready for production deployment. This demonstrates NUVA's commitment to comprehensive security practices and thorough remediation of all audit findings before launch.

Security Infrastructure

OpenZeppelin Contract Base

• nvAsset tokens use OpenZeppelin's battle-tested ERC-20 implementation

• 5+ years protecting billions in DeFi assets

• Regular security updates and community auditing

Cosmos SDK Standards (Provenance)

• Vault module follows Cosmos SDK best practices

• Standard module architecture with secure state management

• Regular security monitoring and automated scanning

Ongoing security practices

Regular security monitoring

NUVA maintains ongoing security practices, including:

• Continuous code review and testing

• Automated security scanning

• Community bug bounty program

Update and patch procedures

Security patches are:

• Developed and tested thoroughly

• Audited before deployment

• Announced to users in advance

• Deployed with multisig approval

Emergency procedures

In case of critical security issues:

• Emergency pause mechanisms can halt vault operations

• Governance can authorize emergency upgrades

• User funds remain secure throughout

Proof of Reserves

On-Chain Verification

Proof of Reserves (PoR) enables independent verification of vault backing through blockchain transparency, replacing trust with verifiable on-chain data.

Verifiable Elements:

• Total token supply issued

• Complete backing reserve holdings

• All mint/burn transaction history

Verification of Proof of Reserves

To review a vault’s holdings, visit app.nuva.finance and select the vault you’d like to verify. Navigate to the vault’s dedicated page and click on the “Transparency” tab.

In this section, you can view the Proof of Reserves, including the vault’s balance and percentage of collateral, which are updated approximately once per day. You’ll also find the vault’s address, enabling you to verify data directly on etherscan.io.

Real-Time Transparency Dashboards

• nvYLDS: Proof of Reserves

• nvPRIME: Coming soon

Provenance Blockchain

Provenance Blockchain, one of the world's largest Layer 1 as measured by RWAs, with more than $20 billion in total value locked (TVL) as of January 2026, is uniquely positioned to serve compliant, scalable, and efficient decentralized finance. With its modular Cosmos-based architecture and native compliance tooling, Provenance offers a proven, secure, purpose-built foundation for the next wave of real-world asset tokenization.

In 2025, NUVA expanded Provenance Blockchain’s capabilities by contributing an innovative Vault Module that brought unique capabilities to the ecosystem including the ability to distribute automatic continuous compounding interest without cumbersome manual periodic staking or claiming.

As the NUVA Marketplace grows, Provenance’s ecosystem will benefit from increased total value locked (TVL), transaction volume, and $HASH fees.

• Role in NUVA: Layer I blockchain network for certain underlying assets

Provenance Blockchain (Whitepaper) distinguishes itself from other chains through three foundational pillars:

1. Next-generation financial protocols & digitally native on-chain assets

• Innovative financial services: Provenance powers Figure and Figure Markets; groundbreaking on-chain protocols that provide lending, asset management, and a marketplace for the modern user. This includes DeFi-powered management of real-world assets, automated lending infrastructures, and a revolutionary cross-chain collateral protocol—allowing users to efficiently collateralize diverse assets (from real estate to crypto) for maximum capital efficiency.

• Robust ecosystem integration: Beyond the figure ecosystem, Provenance is validated by participation from diverse sell-side banks (e.g., Goldman Sachs, Jefferies), multiple bank fiat rail partners (e.g., UMB, Lead), and a wide range of buy-side firms (e.g., Apollo, Bayview, Marathon), with over 140 third parties leveraging Figure’s mortgage technology.

2. Enterprise-ready architecture

• Scalable, high-performance infrastructure: Built on a secure, proof-of-stake framework, Provenance delivers the high throughput and low fees critical for real-world financial operations. This infrastructure is engineered to support the rapid on-chain tokenization of real-world assets as the market scales.

• Interoperability & data control: Acting as a data validation chain rather than a golden dataset, Provenance empowers users with control over their information. It also supports interoperability—bridging to other Layer 1 blockchains via Axelar—and integrates enterprise features such as roles, entitlements, and decentralized MPC custody. Additionally, innovations like DART ensure instant UCC security perfection on-chain.

3. Best-in-class security & operational integrity

• Advanced custody & compliance: Provenance employs state-of-the-art security measures including decentralized multi-party computation (MPC) custody leveraging the Cosmos SDK, ensuring that assets are safeguarded at all times

• Regularity & institutional confidence: With established Figure Markets transfer agents, lending and servicing licenses, and alignment with local and global security standards, Provenance meets the rigorous demands of institutional clients. This robust security framework fosters trust and positions the network as the premier chain in the RWA space.