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.
Overview
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
1. Deposit cbBTC
You begin by depositing cbBTC into the Sova vault on Base.
Contract
Vault smart contract on Base
Verification
Transaction confirmed on-chain
Activation
Deposit immediately active
2. Receive svBTC
In return for your deposit, you receive svBTC tokens.
Token Type
ERC-4626 vault shares
Exchange Rate
svBTC minted at current rate
Tracking
Position tracked entirely on-chain
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.
4. Exchange Rate Appreciation
Your yield is reflected in the svBTC:cbBTC exchange rate:
Balance
Your svBTC balance stays constant
Value
cbBTC redemption value increases over time
Action
No claiming or compounding required
5. Redemption
When you're ready to exit:
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.
Next Steps
Deposit Flow — Step-by-step deposit guide
Redemption Flow — How withdrawals work
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