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Introducing Yala Testnet V3

Introducing Yala Testnet V3! The next evolution of Yala brings you enhanced collateral mechanisms, earning opportunities & a more intuitive UX.

Yala 🏔️

• 4 min read
Introducing Yala Testnet V3

We’re excited to announce the launch of Yala Testnet V3, the next evolution of Yala!

This update brings enhanced collateral mechanisms, expanded earning opportunities, and a more intuitive user experience - paving the way for the future of Bitcoin DeFi. Whether you're a seasoned DeFi user or just getting started, there’s something for everyone in V3.

To get started with Yala Testnet V3, visit: app-testnet-v3.yala.org

For walkthroughs, guides & FAQs, visit: docs.yala.org/user-guide-v3 

Explore what’s new in Yala Testnet V3 below 👇

What’s New?

Earn Section: Stability Pool & Convert

To simplify navigation, the new “Earn” section brings together key earning opportunities:

  • Stability Pool (A reserve of Yala’s Stablecoin $YU)

The Stability Pool allows users to deposit $YU to earn liquidation gains and token rewards over time. This feature integrates with the liquidation mechanism, ensuring a robust risk management system and preserving the stability of the system while delivering attractive yields and efficient capital utilization to users 

Guide: docs.yala.org/user-guide-v3/earn 

  • Convert

The Convert feature enables seamless swaps between $YU and USDC at a predetermined rate, creating a clear arbitrage pathway. It leverages Peg Stability Module (PSM) for optimized liquidity management. This feature enhances price stability and usability of our stablecoin - $YU within the Yala ecosystem, making asset conversions more seamless than ever and without any trading cost such as slippage.

Guide: docs.yala.org/user-guide-v3/earn#convert 

NFT Launch & Giveaway 

Yala’s first-ever NFT collection debuts with Testnet V3. With the NFTs, mainnet users could earn additional Berries with a multiplier based on the NFT’s level. 

Plus, there will be exclusive NFT giveaways for active testnet participants. The higher your testnet berries ranking, the greater chances of claiming an NFT from Yala. More details soon! 

BerryBoard: Track & Earn More Berries

  • “Berries & Leaderboard” has been rebranded as “BerryBoard” for better clarity.
  • New Berries earning rules for Convert and Stability Pool participation.
    • For every 1 $YU you staked into the Stability Pool, you earn 0.03  berries / hour,  additional Token reward, and liquidation gains.  
    • For every 1 USDC you convert into $YU, you earn 1 berries.
  • 1.2x points will be enabled through improved reward mechanisms, encouraging a smooth transition from V2 to V3. Continue to read for more details in the “Earning More Berries in V3” section.
  • Competitive leaderboards to track top earners and community contributors

Multi-Collateral CDPs & Risk Parameter Enhancements

  • Yala has upgraded to a much more flexible and safer Multi-Collateral CDP model to improve system stability. 
  • Vault UI updates: New risk parameters including Total Collateral Ratio, Critical Collateral and Liquidation Cost Reserve to safeguard systemic health and ensure Yala’s long term resilience; and enhanced liquidation mechanism to further stabilize Yala system.
  • Please note, in Testnet V3, the minimum amount of $YU required in a vault will be updated to 2,000 $YU/vault. Retail users can also easily obtain $YU through the Convert and the Swap functions. 
  • The contract address for $YU will be updated in V3 and the YBTC contract address remains unchanged.
    • Updated $YU address: 0xe0232D625Ea3B94698F0a7DfF702931B704083c9

Cross-Chain Fee Incoming

A new fixed fee of 0.0003 BTC applies to all inbound and outbound cross-chain transactions, regardless of amount. This rolls out with V3 to enhance network sustainability, ensure seamless cross-chain swaps, and standardize the experience.

UI/UX Enhancements for a Better Experience

  • Faucet upgrade: New support for YUSDC test tokens in the testnet faucet. You can claim 500 YUSDC from the faucet every week.
  • New “Get Started” Page: Improved onboarding for first-time users.
  • Vault Detail Page Updates: Enhanced risk indicators and vault management tools.
  • Liquidation Display Improvements: Clearer breakdown of liquidation events in transaction history.

Earning More Berries in V3

Berries remain central to Yala’s testnet reward system. In Testnet V3, you can earn Berries through new actions, including:

  • Providing liquidity to the Stability Pool
  • Using the Convert function
  • Participating in upcoming NFT campaigns

The more Berries you earn, the higher your leaderboard ranking - and the greater your rewards in the Yala ecosystem!

To make your transition from V2 to V3 even more rewarding, we are also introducing 1.2x rewards, additional points incentives, and clear UI guidance for the following actions to help users transition smoothly:

  • Depositing BTC for YBTC: 
    • Earn 30 (instead of 24) Berries for every 0.001 BTC deposited, rewarded after 24 hours
  • Vault Creation
    • For first-time vault creators, we are offering an additional 50,000 Berries as a reward for your first successful vault creation in Yala.
    • Opening positions with YBTC: 
      • Earn 1.2 (instead of 1) Berries per hour per 0.001 YBTC.
    • MetaMint $YU: 
      • Earn 0.06 (instead of 0.05) Berries per $YU per hour.
  • Referral Bonus: 
    • When someone joins Yala using your referral link and starts earning Berries through regular tasks, you will automatically earn 18% (instead of 15%) of the Berries they earn.

Read more about Berries Rules here: docs.yala.org/user-guide-v3/berries-rule-yalas-reward-system

With the launch of testnet V3, all testnet V2 berries are frozen and will no longer count. However, your testnet V2 Berries will automatically move to testnet V3 and you can start earning more Berries in V3.

Transitioning from V2 to V3

For a typical user transitioning to V3, follow these steps:

  1. Go to your positions and close the vault(s) created on V2 at your convenience, and make sure you have enough $YU to repay the debt.
  2. Remove LP liquidity in Uniswap under Your positions and receive your YBTC and V2 YU tokens.
  3. Convert all V2 $YU into YBTC, so you can start minting new $YU in V3 (see Updated $YU address above under What's New) and earn Berries in V3 features.

Guide: https://docs.yala.org/user-guide-v3/migrating-from-v2-to-v3

After all is done, simply select V3 at the top of the page, and enjoy the new and improved version! Keep in mind that after switching, you’ll need to reconnect your wallet for smooth access.

Join the Yala Community

Yala is a Bitcoin-based asset protocol designed to channel Bitcoin liquidity into multiple ecosystems using $YU, a Bitcoin-collateralized stablecoin pegged to USD.