💰EARN with bvUSD
How sbvUSD generates yield and other earning paths
BitVault offers yield via bvUSD and sbvUSD. Yield targets come from market-neutral execution. They do not rely on inflationary emissions.
Ways to earn
Institutional earning paths
sbvUSD (staked bvUSD)
DEX revenue (LP fees in approved pools)
Third-party rewards (partner and ecosystem programs)
Retail earning paths
Buy or mint bvUSD
Stake into sbvUSD
Provide liquidity where available
Earn Bits through the rewards program
sbvUSD (staked bvUSD)
sbvUSD is a yield-bearing structured product. It is managed by BV Labs Ltd.
What sbvUSD is
sbvUSD is not a rebasing token. It is not a passive wrapper.
sbvUSD:
Deploys capital into delta-neutral, market-neutral strategies
Maintains economic exposure to protocol collateral (BTC + tokenized equities)
Targets 12% APY
Uses ERC-4626 vault shares (VaultCraft implementation)
Reports performance on-chain
Product parameters
Underlying
bvUSD
Manager
BV Labs Ltd.
Strategy type
Delta-neutral / market-neutral
Target yield
12% APY
Token standard
ERC-4626
Transparency
On-chain accounting
Where sbvUSD yield comes from
Yield comes from real market activity:
Basis and funding rate trades (spot vs perpetuals)
Delta-neutral hedging across BTC, ETH, SOL
Cross-exchange arbitrage (CEX/DEX inefficiencies)
Tokenized equity strategies (lending and arbitrage)
Market making on liquid perp venues via institutional partners
Governance may add incentives. These may be in bvUSD or BVAULT.
Strategy design principles
sbvUSD is built to feel like a market-neutral liquid-yield vehicle.
That means:
Minimize directional exposure. Prefer hedged, cash-and-carry style risk.
Prioritize capital preservation. Reduce risk fast in stressed markets.
Stay liquid. Use instruments that can be rebalanced quickly.
Limit concentration. Cap exposure per venue, asset, and counterparty.
Run defensive operations. Use strict due diligence and custody controls.
Institutional execution partners
BV Labs Ltd. executes through institutional partners:
GSR: regulated liquidity and cross-market arbitrage
Auros: HFT execution and market making
Anti Capital: inventory-aware perp market making
LM5: diversified, defensive market-neutral liquid-yield exposure
Counterparty allocations are monitored. Partners are reviewed on an ongoing basis.
Strategy details
Perp market making (U-perp style)
This strategy captures yield by providing liquidity on liquid perpetual markets.
Core mechanics:
Quote both sides. Capture bid/ask spread and micro-inefficiencies.
Keep inventory tight. Hedge to stay near delta-neutral.
Adjust quotes using a fair-price model. Widen spreads in stress.
Detect adverse selection. Scale down when flows turn toxic.
Reduce or pause quoting when directional risk spikes.
This is designed to produce a smoother return profile than directional trading.
Market-neutral liquid yield (DeFi style)
This strategy targets steady returns while minimizing price risk and volatility.
Typical legs:
Cash-and-carry basis trades (spot vs perp).
Funding rate capture with neutral hedges.
Liquidity provision and short-duration lending where risk is priced well.
Cross-venue arbitrage in liquid markets.
The focus is conservative deployment and fast deleveraging in stress.
Positive funding rate arbitrage
Short perpetuals when funding is positive.
Buy the spot asset at the same time.
Collect funding while staying delta-neutral.
Optimizations can include:
Preferential borrow terms on venues
Lending spot in money markets
Rotating into assets with better funding
Swapping spot for LSTs to add staking yield
Negative funding rate arbitrage
Go long discounted perpetuals.
Hedge with short spot (or equivalent).
Capture funding paid from shorts to longs.
Cross-exchange arbitrage
Monitor spreads across venues.
Execute buy/sell simultaneously.
Capture small spreads at high frequency.
Base yield overlays (BTC LSTs)
Hold BTC LSTs for base yield.
Layer delta-neutral strategies on top.
Preserve BTC-linked exposure.
Tokenized equity strategies
Securities lending
Equity venue arbitrage
RWA yield and short-duration credit exposure
DEX revenue
Liquidity providers can earn trading fees. Approved pools include:
bvUSD/USDC (Uniswap V3)
bvUSD/ETH (Uniswap V3)
sbvUSD/bvUSD (Curve)
Third-party rewards
Ecosystem incentives may be available during expansions. This can include chain programs and partner campaigns.
Risk disclosure
Target yields are not guaranteed.
sbvUSD can experience losses, including rapid losses during volatility. Liquidity can degrade in stressed markets.
Risks include strategy drawdowns, counterparty risk, custody risk, smart contract risk, market risk, liquidity risk, operational risk (venue outages, execution errors), and regulatory risk. Past performance is not a reliable indicator of future results. BitVault is not a bank. sbvUSD is a structured product, not a deposit account.
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