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Hello,
For the managed databases, Data is encrypted at rest with LUKS and in transit with SSL. You might be interested to have a look at the below Product docs which talks more about the Managed Databases:
https://www.digitalocean.com/docs/databases/
If you have any further questions you could share it here or you may write to DigitalOcean support as well.
Was looking for the same info and found the answer here: https://www.digitalocean.com/blog/just-how-managed-are-digitaloceans-managed-databases
Under security section, it mentions “we encrypt data at rest with LUKS and in transit with SSL”