Altcoin Arena: Yala

What Is Yala?

1. What Is Yala?

Yala is a Bitcoin-native liquidity protocol that allows BTC holders to earn yield from decentralized finance (DeFi) and real-world assets (RWAs) without losing custody of their Bitcoin. Users can over-collateralize BTC to mint $YU, a USD-pegged stablecoin, enabling cross-chain liquidity and yield generation while preserving Bitcoin exposure.

2. Why Yala Was Created

Bitcoin is the largest store of value in crypto but has limited utility in DeFi due to its lack of programmability. Yala was created to unlock Bitcoin's liquidity and allow it to earn yields in DeFi and RWA markets, improving capital efficiency while maintaining Bitcoin’s security and decentralization.

3. How Yala Works

1. Deposit BTC into the Yala protocol.
2. Mint $YU, a stablecoin over-collateralized by BTC.
3. Deploy $YU into DeFi protocols or tokenized real-world assets such as treasuries, real estate, and corporate bonds.
4. Earn yield from these deployments while retaining Bitcoin exposure.
5. Manage risk via liquidation systems and a Peg Stability Module (PSM) to maintain $YU's USD peg.
6. Participate in governance with $YALA token voting on collateral ratios, fees, and collateral types.

4. Key Features of Yala

• Bitcoin-collateralized stablecoin ($YU) enabling yield without losing BTC custody
• Cross-chain liquidity via a decentralized Notary Bridge system
• Self-sovereignty, letting users retain full control of Bitcoin
• Low liquidation risk with a liquidation-free borrowing model
• Access to institutional-grade real-world asset yield opportunities
• Transparent and auditable risk management strategies

5. Who Can Use Yala?

• Retail users seeking yield on Bitcoin without giving up custody
• DeFi enthusiasts deploying assets across multiple protocols
• Institutional investors accessing real-world asset yields
• Developers building on or integrating with the Yala protocol

6. What Is the $YALA Token?

$YALA is the governance and utility token of the Yala ecosystem. It allows holders to vote on protocol decisions, including collateral ratios, fees, and types of collateral.

Staking $YALA secures validator nodes and supports decentralized verifier networks, enhancing system stability. Users can also earn $YALA via stability pool rewards by depositing $YU to absorb system debt. The token has a fixed supply of 1 billion, with vesting schedules to prevent supply shocks.