Strategies
Yield from cross-chain settlement activity.
Sova Vaults generate yield through cross-chain settlement fees. Unlike typical DeFi yield farms relying on token emissions, Sova yield is derived from real economic activity.
How It Works
Vault capital is deployed to fund solver operations that settle cross-chain swap intents. Users deposit cbBTC, solvers access this liquidity to fulfill swaps, and the vault earns settlement fees.
The Yield Loop
1. Deposit
Users deposit cbBTC into the vault
2. Access
Solvers access vault liquidity for cross-chain intents
3. Settle
Settlement fees (0.5%) captured on each swap
4. Accrue
Fees flow to vault, increasing svBTC exchange rate
5. Earn
Depositors earn yield proportional to vault share
Yield Sources
Settlement Fees
0.5% fee on all cross-chain swap volume
Solver Spreads
Competitive pricing margins from solver auctions
Capital Efficiency
Optimized liquidity deployment across routes
Real Yield
All returns originate from actual transaction fees — no inflationary token rewards.
Vault Structure
The svBTC vault is deployed as an ERC-4626 compliant smart contract.
Deposit Asset
cbBTC
Vault Token
svBTC (ERC-4626)
Yield Source
Settlement fees
Exchange Rate
Increases with fees
Vault Lifecycle
1. Deposit
Deposit cbBTC into the vault on Base.
2. Token Issuance
Receive svBTC tokens representing your proportional vault share.
3. Capital Deployment
Vault liquidity funds solver operations for cross-chain settlements.
4. Yield Accrual
Settlement fees increase the svBTC:cbBTC exchange rate.
5. Redemption
Redeem svBTC for cbBTC plus accumulated yield after the 30-day redemption period.
Parameters
Deposit Asset
cbBTC
Vault Token
svBTC (ERC-4626)
Minimum Deposit
$500 USD equivalent
Management Fee
0%
Performance Fee
10% (on profits only)
Redemption Period
30 days
Risk Factors
Smart Contract
ERC-4626 standard, audited contracts
Solver Default
Collateralization requirements, bonding
Liquidity
30-day redemption period for orderly exits
Market
Yield varies with cross-chain swap volume
Transparent Operations
All vault operations are on-chain and verifiable on BaseScan.
Learn More
Yield Mechanics — Detailed breakdown of fee generation
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