Markets
NVDAx and trading sessions
How a stock behaves as collateral: sessions, corporate actions and the issuer's powers.
NVDAx is an xStock: a Solana token that tracks Nvidia shares, issued as a Token-2022 token. It behaves differently from SOL in three ways, and the NVDAx market is built around them.
The market sleeps
Nvidia trades in New York's regular session. Outside it, overnight and over weekends and holidays, Pyth's NVDA feed stops updating. Taper rejects any price older than 30 seconds, so while the market is closed:
- Bands do not trade, because no fresh price exists.
- Loans cannot be liquidated, for the same reason.
- Repaying and closing still work. Closing does not need a price.
When the market opens, the first price can sit well away from Friday's close. Bands between the two prices sell at the new price, all at once, and a deep enough gap goes straight to liquidation. Soft liquidation cannot smooth a jump it never sees.
Borrowing only in session
New loans open only inside a borrowing window that the market's session signer signs for each trading day. The window can last at most one day; if nobody renews it, borrowing simply stays closed. The signer closes it before the session ends, so no loan opens just before the oracle freezes. Outside the window, the app says the borrowing session is closed.
The limits are also stricter than SOL's:
| NVDAx | SOL | |
|---|---|---|
| Max loan-to-value | 25% | 55% |
| Range starts under the price | 25% | 15% |
| Band width | 2% | 1% |
| Bands per loan | 10 to 50 | 4 to 50 |
| Liquidation discount | 10% | 5% |
Splits and other corporate actions
NVDAx uses Token-2022's scaled amount: when Nvidia splits its stock or pays a dividend in shares, the issuer changes a multiplier instead of minting tokens. Your raw token balance stays the same; what each token represents changes.
Taper keeps all custody and shares in raw tokens and multiplies Pyth's per-share price by the active multiplier. When the multiplier changes, anyone can call sync_collateral to record it. After that, the market waits for a Pyth update published after the change before it prices anything again, so a new multiplier is never paired with an old share price. Borrowing is also refused inside a session that would cross a scheduled change.
The issuer's powers
The NVDAx issuer keeps powers over every NVDAx token, including the ones in Taper's vault:
- Permanent delegate. The issuer can move or burn tokens from any account.
- Freeze. The issuer can freeze token accounts.
- Pause. The issuer can pause all transfers. While paused, loans cannot open, close or be liquidated, since each moves NVDAx. Repaying still works.
These are part of what NVDAx is, and Taper does not control them. The program pins the issuer's exact authorities and token settings and refuses the token if any of them change.