ERC-4626 tokenized vaults for Bitcoin yield generation
Sova Vaults are ERC-4626 compliant tokenized vaults that aggregate Bitcoin liquidity for cross-chain settlement operations. Depositors provide cbBTC and receive svBTC—a yield-bearing token representing proportional ownership of vault assets.
Yield derives from real economic activity: fees earned from solver operations executing cross-chain settlements. No token emissions. No inflationary rewards.
Fee Structure: 0% management fee. 10% performance fee on profits only.
Vault Standard
ERC-4626 Tokenized Vault
Deposit Asset
cbBTC (Coinbase Wrapped Bitcoin)
Vault Token
svBTC
Minimum Deposit
$500 USD equivalent
Network
Base Mainnet (Chain ID: 8453)
User deposits cbBTC to the Sova vault contract
Vault mints svBTC proportional to current exchange rate
cbBTC enters the capital pool available for solver operations
Yield accrues to the vault, increasing the svBTC:cbBTC exchange rate
Vault yield is generated from protocol revenue:
Settlement Fees
0.5% fee on cross-chain swap volume
Solver Activity
Fees from BTC/ZEC settlement execution
Future: Staking
$SOVA token staking rewards (see Roadmap)
Unlike inflationary DeFi yields, Sova vault returns are backed by actual transaction volume flowing through the protocol.
svBTC is a rebasing vault share token implementing the ERC-4626 standard:
Ownership
Proportional claim on underlying vault assets
Yield Accrual
Auto-compounding via exchange rate appreciation
Composability
Fully transferable, usable in external DeFi protocols
Transparency
On-chain NAV with verifiable exchange rates
The svBTC:cbBTC exchange rate increases over time as yield accrues:
Your svBTC balance remains constant. Its redemption value appreciates.
Management Fee
0%
No annual fee on AUM
Performance Fee
10%
Applied only to realized profits
Deposit Fee
0%
No entry cost
Withdrawal Fee
0%
No exit cost
All contracts deployed on Base Mainnet and verified on BaseScan:
ERC-4626 Standard — Battle-tested tokenized vault implementation
OpenZeppelin Base — Industry-standard contract libraries
Transparent Proxy — Upgradeable pattern for security patches
Role-Based Access — Granular permissions via Role Manager
Multi-Sig Admin — Critical functions require 2/3+ signatures
Smart Contract
Verified contracts, proxy upgradeability for patches
Solver Default
Collateralization requirements, insurance reserves
Oracle Failure
Multiple price feeds, staleness checks
Liquidity
Withdrawal queue system for large redemptions
For comprehensive vault architecture, strategy implementation, and integration details:
Last updated
Day 0: 1 svBTC = 1.0000 cbBTC (deposit)
Day 365: 1 svBTC = 1.0850 cbBTC (8.5% APY accrued)Vault gross yield: 10.0%
Performance fee: 1.0% (10% of 10%)
Net yield to LP: 9.0%