Flow of Funds

From deposit to yield: how your capital works.

Sova provides a transparent, on-chain path for your cbBTC to generate yield through cross-chain settlement activity.

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Overview

Stage	What Happens
Deposit	cbBTC transferred to vault contract
Mint	svBTC tokens issued to your wallet
Yield	Settlement fees increase exchange rate
Redeem	Burn svBTC, receive cbBTC + yield

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1. Deposit cbBTC

You begin by depositing cbBTC into the Sova vault on Base.

Detail	Description
Contract	Vault smart contract on Base
Verification	Transaction confirmed on-chain
Activation	Deposit immediately active

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2. Receive svBTC

In return for your deposit, you receive svBTC tokens.

Detail	Description
Token Type	ERC-4626 vault shares
Exchange Rate	svBTC minted at current rate
Tracking	Position tracked entirely on-chain

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3. Yield Generation

While your cbBTC is in the vault, solvers access vault liquidity to settle cross-chain swaps. A 0.5% fee is captured on each transaction and flows back to the vault, increasing the svBTC:cbBTC exchange rate.

Continuous Yield

Capital cycles through settlements continuously. More swap volume = more fees = higher yield.

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4. Exchange Rate Appreciation

Your yield is reflected in the svBTC:cbBTC exchange rate:

Aspect	Description
Balance	Your svBTC balance stays constant
Value	cbBTC redemption value increases over time
Action	No claiming or compounding required

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5. Redemption

When you're ready to exit:

Step	Description
Request	Submit withdrawal in the Sova app
Wait	30-day redemption period
Receive	cbBTC at current exchange rate

30-Day Redemption

All withdrawals are subject to a 30-day redemption period to ensure orderly liquidity management.

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Next Steps

• Deposit Flow — Step-by-step deposit guide

• Redemption Flow — How withdrawals work