Where does the yield come from?
From borrowers. When you use Earn, your dollars move from your wallet into a lending vault called Steakhouse Prime, built on Morpho, one of the largest lending networks in the world. Borrowers pay interest to borrow the dollars in the vault, and that interest is what you earn.
Who is borrowing my dollars?
People and institutions who put up collateral and pay interest for dollar loans. That interest flows back to lenders like you. It is not a promotional rate and it is not paid by Sovra. It is real lending income, and you can verify it on-chain at any time.
What happens if a borrower doesn't pay back?
Every borrower must lock up collateral worth more than what they borrow. If the value of their collateral falls too close to their loan, it is automatically sold to repay the loan. This happens by code, not by a manual process, and it means lenders are repaid before a borrower can default on them.
Why does the rate move, and is it guaranteed?
The rate is variable, and it is not guaranteed. It moves with lending demand: when more people borrow, the rate goes up; when fewer borrow, it goes down. The rate you see in the app is always the current live rate.
Can my balance go down while earning?
Your Earn balance does not swing with markets the way an investment does. It grows as interest accrues. But earning is not risk free: the vault runs on software, and lending carries risk. Entry 9 explains each risk plainly.
What is Sovra's role: does Sovra run these markets or connect me to them?
Sovra connects you to them, it does not run them. Your dollars move directly from your wallet into the vault, and Sovra never holds them at any point. The vault is managed by Steakhouse Financial, a risk specialist that curates which lending markets your dollars go into.
Is my balance still only mine while it is lent out?
Yes. Your share of the vault is held in your wallet, and only you can withdraw it. There are no lock ups, no notice periods, and no penalties. You can move your money back to your wallet whenever you want, and your earnings come with it.
