Glossary & FAQ
Glossary
svBTC
Vault token received when depositing cbBTC. Represents your share of the vault and appreciates as yield accrues.
cbBTC
Coinbase Wrapped Bitcoin — the deposit asset for Sova vaults. 1:1 backed by Bitcoin.
Vault
ERC-4626 smart contract that accepts deposits, issues svBTC, and tracks yield via exchange rate.
Exchange Rate
Ratio of svBTC to cbBTC. Increases over time as settlement fees accrue.
Settlement Fee
0.5% fee captured when solvers use vault liquidity for cross-chain swaps.
Solver
Entity that fulfills cross-chain swap intents using vault liquidity.
Redemption Period
30-day waiting period for withdrawals.
Reporter
Smart contract that posts valuation updates on-chain.
Conduit
Smart contract that handles fund transfers into and out of the protocol.
Frequently Asked Questions
Deposits
What's the minimum deposit?
$500 USD equivalent in cbBTC.
How do I get cbBTC?
Purchase BTC on Coinbase and withdraw as cbBTC to Base
Use Sova Swap to convert any token to cbBTC
Swap on Base DEXs like Aerodrome
When do I start earning yield?
Immediately after your deposit confirms. Your svBTC begins appreciating as soon as it's minted.
Yield
How do I earn yield?
Yield accrues automatically as solvers use vault liquidity to settle cross-chain swaps. The 0.5% settlement fee flows to the vault, increasing the svBTC:cbBTC exchange rate.
Do I need to claim rewards?
No. Yield is reflected in the exchange rate — no claiming required.
What affects my yield?
Swap Volume
Higher volume = more settlement fees
Network Activity
More cross-chain demand = better utilization
Vault Size
Larger vaults can serve more settlements
Market Conditions
Volatility often increases swap activity
Is the yield sustainable?
Yes. Unlike token emissions, Sova yield comes from real transaction fees. Yield scales with protocol usage.
Withdrawals
How long does withdrawal take?
All withdrawals require a 30-day redemption period.
Request
Immediate
Processing
30 days
Claim
Immediate
Can I cancel a withdrawal?
Yes. Cancel anytime before the 30-day period completes. No penalties.
What if I need liquidity sooner?
svBTC is an ERC-4626 token. You may be able to trade it on secondary markets, though liquidity is not guaranteed.
Fees
What are the fees?
Management Fee
0%
Performance Fee
10% (on profits only)
Deposit Fee
0%
Withdrawal Fee
0%
Technical
Is this custodial?
No. Sova is non-custodial. You retain ownership of your svBTC tokens. The underlying cbBTC is held in the vault smart contract.
What chain is this on?
Base Mainnet (Chain ID: 8453).
Can I use svBTC in DeFi?
Yes. svBTC is ERC-4626 compliant and can integrate with lending markets, structured products, and portfolio dashboards.
Security
Is the vault audited?
Yes. See the Security page for audit reports.
Where can I verify transactions?
All vault operations are visible on BaseScan.
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