Frequently Asked Questions (FAQ)
General
What is Sova Sova is the first Bitcoin-native treasury chain. It turns idle BTC into productive, yield-generating assets by unifying holdings, infrastructure, and liquidity in a single code-driven system.
What problems does Sova solve
Idle BTC that earns no yield
Bridge and wrapper fragmentation for BTC in DeFi
DAT models that rely on equity dilution and boardroom decisions
Lack of transparent, BTC-denominated yield with institutional controls
Who is Sova for Institutional allocators, corporate treasuries, funds, miners, DAOs, and sophisticated retail users who want BTC-denominated yield with onchain transparency and policy controls.
Core assets and vaults
What is sovaBTC The canonical 1 to 1 Bitcoin-backed token on Sova. It is fully redeemable for native BTC and is the standard unit of account for deposits, settlement, and integrations.
What is Sova Prime Sova Prime is the flagship BTC yield vault. Users deposit sovaBTC and receive spBTC shares under the ERC-4626 standard.
What is spBTC spBTC is the ERC-4626 vault share for Sova Prime. It represents a pro-rata claim on vault assets and accrues yield via share price appreciation in BTC terms.
Which strategies does Sova Prime use Institutional, market-neutral sleeves - delta-neutral funding capture, futures basis trading, and market-neutral lending under Master Loan Agreements.
What returns should users expect Sova Prime targets approximately 8 to 10 percent net APY in BTC terms. Returns are market dependent and not guaranteed.
Is yield paid in points or tokens No - yield accrues in BTC terms through spBTC share price appreciation.
Deposits, redemptions, and liquidity
What can I deposit to mint sovaBTC Native BTC and accepted 1 to 1 BTC tokens such as WBTC and cbBTC. Policy-bounded gateways apply where eligibility is required.
How do redemptions work Burn sovaBTC to redeem native BTC. Redemptions follow policy and safety windows to protect users and system integrity.
Is there a lockup Standard vault usage is designed for on-demand deposits and redemptions under policy. Specific incentive programs may offer optional lockups.
Where can I use sovaBTC and spBTC Across the Sova Network and EVM venues that integrate ERC-20 and ERC-4626 tokens. sovaBTC serves as the standard BTC interface for DeFi integrations.
Architecture and security
What makes Sova Bitcoin-native Contracts can treat BTC as a first-class asset - read UTXOs, verify L1 transactions, and program BTC flows directly through Bitcoin-aware precompiles and a Sentinel that syncs finalized BTC events.
How is custody handled Programmatic custody with distributed multi-sig, timelocks, and challenge windows. Policies are enforced by contracts to reduce discretionary risk.
How is risk managed in Sova Prime
Master Loan Agreements and approved counterparties
Concentration limits by borrower, venue, and strategy
Tenor and LTV constraints where applicable
Real-time onchain telemetry and staged capacity
Has Sova been audited Yes - core contracts have been independently audited by Omniscia and Zokyo. The audit scope covered the Sova Prime ERC-4626 vault, sovaBTC mint and redemption flows, custody and withdrawal safeguards, fee collection and the SOVA Buyback Engine, and L2 integration contracts. Findings were remediated and re-verified. Staged deployments and capacity caps remain in place, and additional audits will be commissioned as new modules ship.
Fees and economics
What fees apply Vault fees of approximately 1 to 2 percent of TVL, bridge fees around 0.1 percent, and standard L2 usage fees. Exact parameters are set by policy and may evolve.
What is the SOVA Buyback Engine An onchain policy that routes protocol fees into BTC accumulation and $SOVA buybacks. The aim is to increase BTC per $SOVA over time and strengthen alignment.
How does value accrue to the token $SOVA has a fixed supply of 21 billion. As fees are recycled into BTC accumulation and buybacks, BTC per $SOVA is designed to rise with usage.
Is there dilution No - supply is fixed at 21 billion tokens.
Access and compliance
Who can participate Eligibility depends on jurisdiction and product. Token transfers in secondary markets are permissionless, while deposit and redemption gateways may apply policy checks.
Is Sova a bridge or a wrapper service Sova is a Bitcoin-native treasury chain with a unified BTC interface. sovaBTC is the canonical 1 to 1 token for accounting and settlement with a native path back to L1 BTC.
Does Sova replace corporate DATs No - Sova upgrades them. Treasuries can route BTC through Sova to capture yield with transparent, onchain policy and a native redemption path.
Operations and transparency
How do I track performance Onchain reporting for vault NAV, reserves, fee capture, and buyback execution. spBTC share price reflects accrued BTC-denominated returns.
What happens during market stress Policy and circuit breakers manage liquidity and risk - caps, queues, or safety windows can be applied to protect users and maintain orderly operations.
How are parameters changed Governance parameters and policy rails are set onchain. Changes follow transparent processes and are visible to participants.
Getting started
Quick path
Deposit BTC or accepted 1 to 1 BTC tokens
Mint sovaBTC
Allocate to Sova Prime to receive spBTC
Track onchain reporting and redeem to L1 BTC when needed
Where to learn more
Website - sova.io
X - x.com/SovaBTC
Telegram - t.me/sova_btc
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