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Sova Labs
February 10, 2025
Powering the next era of financial products built on Bitcoin’s strongest foundation
Sova is the first Bitcoin-native treasury chain that turns idle BTC into productive, yield-generating assets by unifying holdings, infrastructure, and liquidity in a single code-driven system.
At its core, Sova Prime is the flagship BTC yield vault that allocates deposits into institutional-grade, market-neutral strategies - delta-neutral funding capture, futures basis trading, and market-neutral lending.
These are the same strategies used by top funds and trading desks - now making institutional-grade BTC yield transparent, open and accessible to everyone.
Despite over $2 trillion in market value - much of it held passively by long-term investors - Bitcoin remains largely underutilized in institutional yield strategies. The dominant asset in crypto is often treated as a static store of value, rather than a productive component of portfolio construction.
Yield-bearing options for BTC have historically been limited, typically requiring:
Lending to opaque counterparties
Wrapping assets into non-native formats
Accepting rewards in tokens or points instead of BTC
For allocators who demand real BTC yield, with transparent risk and institutional design, the market has offered few credible options - until now.
Digital Asset Treasuries (DATs) like MicroStrategy proved that corporations can hold Bitcoin as a reserve asset, amassing ~$115B through equity and debt financing. This validated the model, but also revealed its flaws: access is gated to insiders, most BTC sits idle earning no yield, and operations depend on equity dilution or asset sales in downturns.
The result: billions in foregone earnings and persistent discounts to NAV. DATs showed what’s possible, but their legacy structure isn’t built for Bitcoin.
Bitcoin is the most secure asset in the world, but in practice it sits idle. Less than 2% of BTC supply touches DeFi, and most of that is wrapped through trusted third parties.
Sova changes this by turning Bitcoin into a programmable, yield-bearing asset class. Developers can build apps that use BTC-backed institutional-grade strategies as collateral, custody, or settlement - without giving up security or transparency.
The Sova Network serves as the essential tooling that enables native BTC to be brought into an EVM-compatible environment and put to work - mint sovaBTC, allocate to Sova Prime, and earn BTC-denominated yield - achieving not only value preservation but also value appreciation via the Sova Prime vault.
The architecture accumulates Bitcoin through fees from our product suite (Sova Prime and Sova Network) while operating a rules-based treasury at network scale. This activates the $SOVA Buyback Engine: broadening access while running a dedicated revenue engine that funds further BTC accumulation and executes $SOVA buybacks to ensure token-treasury alignment.
Sova solves the DAT problem by replacing brokerage-gated, dilution-prone corporate wrappers with open, onchain participation and real BTC yield. Tokenized access via sovaBTC and spBTC lets eligible users allocate BTC into Sova Prime’s institutional, market-neutral strategies targeting ~8 to 10 percent net APY, while treasury operations run as code for transparent, non-discretionary management.
The SOVA Buyback Engine recycles protocol fees into BTC accumulation and $SOVA buybacks, increasing BTC per $SOVA and aligning all participants. A unified BTC clearing layer standardizes minting, redemption, and routing across BTC and qualified wrappers with a native path back to BTC, turning idle reserves into productive, globally
Tokenized participation - users hold sovaBTC and spBTC instead of brokerage shares, with permissionless transfer and composability across DeFi
Global reach - mint and redeem across supported chains, no brokerage or jurisdictional gatekeeping for secondary transfers, deposits routed through policy-bounded gateways where eligible
Native BTC path - redeem sovaBTC for native BTC, avoiding custodial bottlenecks and equity market hours
Institutional strategies - Sova Prime channels deposits into delta-neutral funding capture, futures basis trading, and market-neutral lending
Real BTC yield - returns accrue via spBTC share price appreciation in BTC terms, not points or substitute tokens
Risk framework - MLA-backed sleeves, borrower whitelists, concentration caps, tenor and LTV limits, onchain telemetry, and audited ERC-4626 vaults
Liquidity with discipline - predictable deposit and redemption mechanics with safeguards and monitoring
Target returns - ~8 to 10 percent net APY, market dependent and not guaranteed
Treasury-as-code - deposits, allocations, redemptions, and custody are executed by contracts with preset limits and controls
Fixed supply alignment - 21 billion SOVA, no dilution, transparent onchain governance parameters
SOVA Buyback Engine - protocol fees are automatically routed by policy into BTC accumulation and $SOVA buybacks, increasing BTC per $SOVA over time
Full transparency - onchain reporting for reserves, vault NAV, fee capture, and buyback execution
Sova turns a Bitcoin treasury into an onchain economy - powered by immutable code, not discretionary management. BTC evolves from a static reserve into a productive, yield-bearing asset class - with sovaBTC as the standard unit and Sova Prime as the institutional yield rail, treasuries deploy capital with transparent policy and redeem natively to BTC.
The SOVA Buyback Engine routes protocol fees into BTC accumulation and $SOVA buybacks - increasing BTC per $SOVA as usage grows and hardens token-treasury alignment.
Even a modest shift can matter - if 5 percent of corporate BTC treasuries route through Sova, about 50,000 BTC could begin earning yield, which at an 8 percent target translates to roughly $440 million in annual BTC-denominated earnings. Targets are illustrative and market dependent - yield is not guaranteed.
This is the Bitcoin Treasury Chain - a rules-based network, not a corporation holding Bitcoin - open globally to eligible participants. Sova = Store of Value Accelerator.