# Welcome to Sova Vaults

> **Yield-bearing Bitcoin exposure through cross-chain settlement activity.**

Deposit **cbBTC** and receive **svBTC** — a tokenized vault share that automatically appreciates as the protocol earns fees from solving cross-chain swaps.

***

## Why Sova Vaults

| Benefit              | Description                                                   |
| -------------------- | ------------------------------------------------------------- |
| **Real Yield**       | Fees from actual cross-chain swap volume, not token emissions |
| **Fully On-chain**   | Transparent ownership via ERC-4626 vault tokens               |
| **Permissionless**   | Connect your wallet and deposit — no sign-ups or verification |
| **Auto-compounding** | Yield accrues directly to the exchange rate                   |

> **Sustainable Yield Model**
>
> Unlike inflationary DeFi rewards, Sova yield is backed by real transaction volume. More swaps = more settlement fees = higher returns.

***

## How It Works

### 1. Deposit cbBTC

Connect your wallet on Base and deposit **cbBTC** into the Sova vault.

### 2. Receive svBTC

Immediately receive **svBTC tokens** representing your proportional share of the vault.

### 3. Yield Accrual

As solvers use vault liquidity to settle cross-chain swaps:

* 0.5% settlement fee is captured on each transaction
* Fees flow back to the vault
* The svBTC:cbBTC exchange rate increases

### 4. Redeem

When you're ready to exit:

* Submit a withdrawal request
* Wait for the 30-day redemption period
* Receive cbBTC plus accumulated yield

***

## Vault Parameters

| Parameter             | Value                 |
| --------------------- | --------------------- |
| **Deposit Asset**     | cbBTC                 |
| **Vault Token**       | svBTC (ERC-4626)      |
| **Network**           | Base Mainnet          |
| **Minimum Deposit**   | $500 USD equivalent   |
| **Redemption Period** | 30 days               |
| **Management Fee**    | 0%                    |
| **Performance Fee**   | 10% (on profits only) |

***

## Comparison

| Feature                | Sova Vaults         | DeFi Yield Farms | CEX Lending       |
| ---------------------- | ------------------- | ---------------- | ----------------- |
| **Yield Source**       | Settlement fees     | Token emissions  | Rehypothecation   |
| **Sustainability**     | Scales with usage   | Dilutive         | Counterparty risk |
| **On-chain Ownership** | ✓                   | ✓                | ✗                 |
| **Self-custody**       | ✓                   | ✓                | ✗                 |
| **Transparency**       | Verifiable on-chain | Varies           | Opaque            |

***

## Getting Started

| <p><strong>Step 1</strong></p><p><a href="/pages/VxOM8DqfJgfZu1veCFFk">Connect your wallet</a> on Base Mainnet</p> | <p><strong>Step 2</strong></p><p><a href="/pages/EoNFjtKfzoJ75PdO0jNV">Deposit cbBTC</a> to receive svBTC</p>     |
| ------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------- |
| <p><strong>Step 3</strong></p><p>Track your position as yield accrues</p>                                          | <p><strong>Step 4</strong></p><p><a href="/pages/jSU2C8gMOv4IWvSCauYZ">Redeem</a> after the redemption period</p> |

***

## Learn More

* [Yield Mechanics](/sova-for-users/strategies/yield-mechanics.md) — How settlement fees generate returns
* [Flow of Funds](/sova-for-users/flow-of-funds.md) — From deposit to redemption
* [Glossary & FAQ](/sova-for-users/glossary-and-faq.md) — Common questions answered


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