Sova Prime

Introduction

Sova Prime is the flagship yield layer of the Sova Chain, built to make Bitcoin productive. It is fully permissionless, meaning any BTC allocator — individuals, DATs (DAOs, Allocators, Treasuries), corporates, or funds — can participate.

Depositors bridge Bitcoin into sovaBTC, the unified settlement asset of the Sova Chain, and allocate it into Prime vaults to mint spBTC. spBTC is an ERC-4626 vault token that automatically accrues BTC-denominated yield from market-neutral, institutional-grade strategies.

Prime is simple: BTC in, yield out.

Supported Assets

Sova Prime supports Bitcoin as its core asset, with sovaBTC acting as the gateway into the protocol.

• ₿ Bitcoin (via sovaBTC, cbBTC, wBTC)

  • 1:1 backed by native Bitcoin

  • Acts as the base collateral and settlement layer

  • Redeemable into native BTC at any time

  • Used to mint spBTC for yield exposure

Vault Token: spBTC

When you deposit BTC into Prime, you receive spBTC, an ERC-4626 compatible vault token.

Key Properties:

• Tracks your proportional share of vault Net Asset Value (NAV)

• Increases in value as the vault generates yield

• Fully redeemable for sovaBTC → native BTC

• Interoperable with other on-chain protocols

💡 Think of spBTC as a Digital Yield Certificate — a tokenized claim on BTC plus continuously accruing yield.

Yield Strategy Overview

Sova Prime allocates pooled BTC into market-neutral, risk-controlled strategies, such as:

• Basis trades (spot vs. futures arbitrage)

• Funding rate capture on derivatives venues

• Cash-equivalent rotations for stable, short-duration returns

Strategies are managed by policy guardrails:

• Leverage caps

• Venue diversification

• Circuit breakers

• Automated monitoring

This ensures BTC yield remains sustainable, transparent, and risk-aware.