Risk Framework
Our approach to safety, risk management, and non-custodial security.
At SovaBase, we believe that steady wisdom beats impulsive chasing. Our risk framework is designed to protect your capital while generating sustainable yield. We prioritize "boring" reliability over flashy, high-risk returns.
The Three Wisdoms
Our philosophy is built on three core pillars:
See Clearly (Due Diligence)
We don't just jump into protocols. We rigorously evaluate over DeFi protocols based on strict safety metrics. You don't need to spend your weekends reading reports—we do it for you.
Key Metrics:
- Audits: Number and quality of audits from reputable firms.
- Time-in-Market: Proven track record without major exploits.
- Liquidity Depth: Ability to handle large withdrawals without slippage.
- Exploit History: Analysis of past incidents and team responses.
Move Quietly (Automated Rebalancing)
Markets change. Rates shift. Risks emerge. SovaBase acts as a silent guardian, automatically rebalancing your portfolio to optimize yield and mitigate risk.
- No Gas Fees for You: We handle the transaction costs of rebalancing.
- No Manual Transactions: No need to sign transactions every time a rate changes.
- No 2 AM Panic: We monitor the markets 24/7 so you can sleep.
Hold Tightly (Non-Custodial Security)
We never take custody of your funds. SovaBase is built on non-custodial smart contracts.
- Your Keys, Your Crypto: Funds never leave your control.
- Withdraw Anytime: You are not locked in.
- Censorship Resistance: Even if SovaBase (the company) disappears, your assets remain in the smart contracts, accessible directly by you.
Monitoring & Response
Our "Wise Owl" system provides continuous monitoring:
- Real-time Alerts: We track on-chain data for liquidity crunches, de-pegging events, and suspicious contract activity.
- Automated Defense: In extreme market conditions, the system can pause deposits or trigger defensive rebalancing to protect capital.
- Quarterly Reviews: Our team of treasury operators reviews the entire strategy and protocol list every quarter.
Important Note
While we strive to minimize risk, all DeFi activities carry inherent risks, including smart contract bugs and systemic market failures. Never invest more than you can afford to lose.