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Documentation

Comprehensive technical documentation for the INVORA protocol, covering architecture, implementation, and security considerations.

Overview

INVORA is a Solana-based digital finance protocol that transforms verified digital invoices into programmable, on-chain credit infrastructure. The protocol enables businesses to access under-collateralized credit by leveraging their transaction history, credit scoring, and verified invoices as credit signals.

Unlike traditional lending platforms that require full collateralization, INVORA uses a sophisticated credit scoring engine that evaluates multiple data points including on-chain transaction history, behavioral patterns, and off-chain business data to provide accurate risk assessments and enable flexible credit access.

The protocol is built on Solana to leverage its high throughput, low transaction costs, and fast finality, making it ideal for real-world trade financing applications that require quick settlement and institutional-grade reliability.

System Architecture

Core Components

1. Invoice Registry

On-chain registry for digital invoices with verification mechanisms. Each invoice is stored with metadata including issuer, recipient, amount, due date, and verification status. The registry ensures invoice immutability and provides transparent tracking of invoice lifecycle events.

2. Credit Scoring Engine

Multi-factor scoring system that evaluates creditworthiness based on on-chain transaction history, payment behavior patterns, invoice payment records, and off-chain business data. The engine generates dynamic credit scores that update in real-time as new data becomes available.

3. Loan Execution Module

Smart contract-based loan origination and management system. Handles loan requests, collateral management, interest calculation, repayment tracking, and liquidation logic. All operations are executed transparently on-chain with deterministic outcomes.

4. Settlement Engine

Automated settlement system for invoice payments and loan repayments. Integrates with Solana's native token transfer mechanisms to ensure fast, secure, and transparent fund movements between parties.

Invoice Lifecycle

1

Invoice Creation

Business creates a digital invoice specifying amount, recipient, due date, and payment terms. Invoice is signed by the issuer's wallet and submitted to the protocol.

2

Verification

Protocol verifies invoice authenticity, checks wallet signatures, validates payment details, and confirms the business has sufficient reputation or history. Verified invoices receive on-chain attestation.

3

Credit Assessment

Credit scoring engine evaluates the invoice and issuer to determine eligible loan amount, interest rate, and terms. Assessment considers invoice value, payment history, credit score, and risk factors.

4

Loan Execution

If approved, borrower can execute a loan against the invoice. Funds are transferred instantly from the protocol's liquidity pool to the borrower's wallet. Loan terms and repayment schedule are encoded on-chain.

5

Settlement & Repayment

When the invoice recipient makes payment, funds are automatically routed through the settlement engine to repay the outstanding loan. Any remaining balance is transferred to the invoice issuer. The protocol tracks all payment events on-chain.

Credit & Loan Model

Credit Scoring Methodology

INVORA employs a multi-dimensional credit scoring model that evaluates multiple risk factors to provide accurate creditworthiness assessments:

Transaction History:On-chain payment records, volume patterns, and consistency metrics
Behavioral Scoring:Payment timeliness, default history, and platform engagement
Invoice Quality:Recipient reputation, invoice amount, payment terms, and historical acceptance rate
Off-Chain Data:Business registration, revenue data, and third-party credit reports (when available)

Loan Terms & Structure

Loans are structured as short-term credit facilities tied to specific invoices. Loan amounts are typically between 50-80% of verified invoice value, with interest rates determined dynamically based on credit score, invoice quality, and market conditions.

The protocol uses automated repayment mechanisms that trigger when invoice payments are received, ensuring timely loan closure and minimizing default risk. All loan terms are transparently encoded in smart contracts and can be audited on-chain.

Security & Risk Considerations

Security Architecture

Non-Custodial Design

INVORA operates as a non-custodial protocol. Users retain full control of their assets through their Solana wallets. The protocol never holds private keys or has the ability to unilaterally move user funds.

Smart Contract Audits

All protocol smart contracts undergo rigorous security audits by leading blockchain security firms. Audit reports are published publicly and the codebase is open-source for community review.

Transaction Signing

Every protocol interaction requires explicit wallet signature from the user. This ensures that no action can be taken without user authorization and provides a complete on-chain audit trail.

Risk Management

Credit Risk Mitigation

The protocol employs conservative loan-to-value ratios, real-time credit monitoring, and automated liquidation mechanisms to minimize credit risk exposure. Diversified liquidity pools spread risk across multiple borrowers.

Invoice Verification

Multi-step verification process ensures invoice authenticity before credit extension. The protocol validates wallet ownership, checks historical patterns, and requires recipient acknowledgment where applicable.

Liquidity Management

Dynamic interest rates and loan availability adjust based on protocol liquidity levels. This ensures the protocol remains solvent and can meet withdrawal demands while optimizing capital efficiency.

Smart Contract Architecture

Program Structure

INVORA smart contracts are deployed on Solana using the Anchor framework. The protocol consists of multiple program modules that handle different aspects of invoice financing.

Invoice Registry Program

Program ID: InvoAbc123...xyz
Version: 1.0.0

Manages the lifecycle of digital invoices on-chain. Stores invoice metadata, verification status, payment history, and ownership information.

Key Instructions:
create_invoice - Creates new invoice account
verify_invoice - Marks invoice as verified
mark_paid - Records invoice payment
cancel_invoice - Cancels unpaid invoice

Credit Scoring Program

Program ID: CreditDef456...abc
Version: 1.0.0

Implements the credit evaluation engine. Calculates credit scores based on on-chain transaction history and maintains credit profiles for all participants.

Key Instructions:
initialize_profile - Creates credit profile
update_score - Recalculates credit score
get_evaluation - Returns credit assessment
record_event - Logs credit-affecting events

Loan Execution Program

Program ID: LoanGhi789...def
Version: 1.0.0

Handles loan origination, collateral management, repayment processing, and liquidation logic. Integrates with credit scoring and invoice registry programs.

Key Instructions:
request_loan - Initiates loan request
approve_loan - Approves and disburses loan
repay_loan - Processes loan repayment
liquidate - Executes collateral liquidation

Liquidity Pool Program

Program ID: PoolJkl012...ghi
Version: 1.0.0

Manages protocol liquidity pools that fund loans. Handles liquidity provider deposits, withdrawals, and fee distribution.

Key Instructions:
deposit_liquidity - Adds funds to pool
withdraw_liquidity - Removes funds from pool
distribute_fees - Distributes protocol fees
rebalance - Rebalances pool allocation

Account Structure

The protocol uses several account types to store state. All accounts are owned by their respective programs and include rent-exempt reserves.

Invoice Account

struct Invoice {
pub id: Pubkey,
pub issuer: Pubkey,
pub recipient: Pubkey,
pub amount: u64,
pub currency: Currency,
pub due_date: i64,
pub status: InvoiceStatus,
pub verified: bool,
pub created_at: i64,
pub metadata: Vec<u8>
}

Credit Profile Account

struct CreditProfile {
pub owner: Pubkey,
pub score: u16, // 0-1000
pub grade: CreditGrade,
pub total_borrowed: u64,
pub total_repaid: u64,
pub defaults: u8,
pub on_time_payments: u16,
pub late_payments: u16,
pub last_updated: i64
}

Loan Account

struct Loan {
pub id: Pubkey,
pub borrower: Pubkey,
pub invoice_id: Pubkey,
pub principal: u64,
pub interest_rate: u16, // Basis points
pub term: u32, // Days
pub disbursed_at: i64,
pub due_date: i64,
pub amount_paid: u64,
pub status: LoanStatus
}

Integration Patterns

Webhook Notifications

INVORA provides webhook endpoints for real-time notifications of protocol events. Configure webhooks to receive instant updates when invoices are created, paid, or when loans are approved or repaid.

Webhook Configuration

Register your webhook endpoint through the INVORA dashboard. All webhook payloads are signed with HMAC-SHA256 for security verification.

POST https://your-api.com/webhooks/invora

Headers:
X-Invora-Signature: <hmac_signature>
X-Invora-Event: invoice.created
Content-Type: application/json

Event Types

invoice.created- New invoice registered
invoice.verified- Invoice verification complete
invoice.paid- Invoice payment received
loan.requested- New loan request submitted
loan.approved- Loan approved and disbursed
loan.repaid- Loan fully repaid
credit.updated- Credit score recalculated

Payload Example

{
"event": "loan.approved",
"timestamp": 1735689600,
"data": {
"loan_id": "loan_abc123",
"borrower": "wallet_address",
"amount": 4000,
"interest_rate": 8.5,
"term_days": 30,
"invoice_id": "inv_xyz789"
}
}

Signature Verification

Always verify webhook signatures to ensure requests are from INVORA.

import crypto from 'crypto'

function verifyWebhook(payload, signature, secret) {
const hmac = crypto.createHmac('sha256', secret)
hmac.update(JSON.stringify(payload))
const expected = hmac.digest('hex')
return crypto.timingSafeEqual(
Buffer.from(signature),
Buffer.from(expected)
)
}

REST API

In addition to the SDK, INVORA provides a REST API for backend integrations and non-JavaScript environments.

Base URL

https://api.invora.finance/v1

Authentication

API requests require JWT tokens obtained through wallet signature verification.

Authorization: Bearer <jwt_token>

Key Endpoints

POST/invoices

Create a new invoice

GET/invoices/:id

Get invoice details

POST/credit/evaluate

Evaluate creditworthiness

GET/credit/score

Get credit score

POST/loans/request

Request a new loan

GET/loans/active

List active loans

Performance & Scalability

Transaction Performance

INVORA leverages Solana's high-performance architecture to provide fast transaction finality and low costs suitable for high-frequency trade financing operations.

~400ms
Average confirmation time
<$0.01
Transaction cost
65,000+
TPS capacity
99.99%
Uptime target

Scalability Considerations

Horizontal Scaling

The protocol is designed for horizontal scaling. As transaction volume grows, additional validator nodes and RPC endpoints can be added without protocol changes. The modular program architecture allows independent scaling of different system components.

State Management

Account data is optimized for minimal storage requirements. Historical data is archived off-chain while maintaining on-chain proof of existence. This approach keeps on-chain state lean while preserving full auditability.

Load Distribution

The protocol supports load distribution across multiple liquidity pools and credit scoring instances. This prevents single points of congestion and ensures consistent performance during peak usage periods.

Governance & Future Development

Protocol Governance

INVORA will transition to decentralized governance, allowing token holders to propose and vote on protocol upgrades, parameter changes, and feature additions.

Proposal System:Community members can submit proposals for protocol improvements
Voting Rights:Token-weighted voting on all protocol decisions
Parameter Adjustments:Interest rates, LTV ratios, and credit thresholds governed by community
Treasury Management:Community oversight of protocol treasury and fee allocation

Roadmap Highlights

Q1 2025: Enhanced Credit Models

Integration of advanced machine learning models for more accurate credit scoring. Support for additional data sources including cross-chain transaction history.

Q2 2025: Multi-Chain Expansion

Bridge functionality to enable cross-chain invoice financing. Initial support for Ethereum and Polygon with wrapped asset integration.

Q3 2025: Invoice Marketplace

Secondary market for trading invoice-backed securities. Allows investors to purchase loan positions and provides additional liquidity options for businesses.

Q4 2025: Institutional Features

White-label solutions for financial institutions. Enterprise-grade API with custom integration support, dedicated liquidity pools, and institutional custody integration.