Yala Updates: October

This October has been nothing short of monumental for Yala. We achieved two major milestones: Successful launch of Testnet V1 and the completion of our seed round fundraising. These achievements have not only introduced our community to Yala’s initial product suite but have also fueled excitement and engagement as we prepare for our next leap forward: Testnet V2, which promises expanded functionality and innovative features.

As a DeFi protocol on Bitcoin, Yala aims to bridge Bitcoin’s liquidity across blockchains. Our users are not just participants; they are vital channels for this liquidity. The testnet serves as the initial platform for users to interact with, understand, and ultimately believe in our vision, joining us in our mission.

In this update, we’ll cover key developments, including:

• Yala Protocol Updates
• A Recap of Our Fundraising Announcements
• Community Initiatives and Growth Highlights

Yala Protocol Development

Our guiding principle at Yala is to onboard users progressively through direct interaction with our product. With this in mind, our product and development team launched Testnet V1 on October 15th, focusing on delivering essential functionalities while ensuring an unparalleled user experience:

• Deposit Bitcoin and Mint $YU
• Stake $YU to Earn Berries – Yala Testnet Points
• Repay Stablecoins and Withdraw Collateral

This testnet is a crucial milestone, taking the first step towards integrating Bitcoin's liquidity into a wider blockchain ecosystem via $YU. More than just an asset, $YU serves as a vital conduit for bringing Bitcoin's liquidity into non-Bitcoin environments.

1. Dashboard with Key Metrics: Understanding the importance of financial oversight in DeFi, we've crafted a user-friendly Key Metrics Dashboard. It displays critical statistics such as liquidation price, collateralization ratio, $YU debt, and more, all dynamically calculated based on your deposited collateral and borrowed stablecoins. This dashboard empowers users with real-time data for confident decision-making.
2. MetaMint $YU: In our initial phase, Yala facilitates direct deposits of Bitcoin from a Taproot address to mint $YU on Ethereum. We've bypassed the conventional, cumbersome process of wrapping native BTC into tokenized forms before minting stablecoins. Our "one-click" MetaMint solution reduces complexity and risk, enhancing both user experience and security in integrating Bitcoin into DeFi.
3. Portfolio Management: This functionality allows users to seamlessly manage their portfolios through key actions: minting additional $YU, withdrawing BTC by repaying debt to free up collateral, closing vaults with one click to settle debt and reclaim collateral, and staking or unstaking $YU.
4. Asset return: We ensure user collateral is always safe. If collateral assets on Yala remain unused in any vault due to errors or failures on destination chains, users can reclaim them from the Unclaimed Collateral section.
5. Liquidation: Yala ensures the safety of the system by implementing a liquidation process. Liquidation is triggered if the value of a user's collateral falls below the required collateral price.
6. Team-Up Function: We believe community is the foundation of growth. Rather than spending on traditional advertising for user acquisition, we're sharing those rewards with members who actively contribute to our growth. This is why we created the "Team-Up" function. When members refer new users, they receive a portion of the Berries earned by their referrals.

All these advancements were introduced in Testnet V1, serving as the final rehearsal before our mainnet launch and showcasing the core features of our protocol.

Fundraising Announcements

Milestone announcements are crucial for building cohesion and increasing engagement within a community. In October, we announced the successful completion of our seed funding round, co-led by Polychain Capital and Ethereal Ventures. The round also saw participation from Galaxy Vision Hill, Anagram, Amber Group, ABCDE, Ambush Capital, GeekCartel, Hashkey Capital, L2 Iterative Ventures (L2IV), SatoshiLab, UpHonest Capital, UTXO Management, 280 Capital, and more.

This backing not only validates our innovative approach but also strengthens community trust, setting the stage for developing a dynamic liquidity layer linking Bitcoin with other blockchain ecosystems.

Yala's Community Initiatives & Growth

To enrich our community's understanding and engagement with the DeFi landscape, we introduced Yala’s Space: "The Bitcoin Liquidity Series". This initiative brought together thought leaders from across the industry to delve into the complexities of technology and economic design. In October, we were honored to have speakers from Nubit and Botanix, with each session drawing an impressive average of 9K~10K listeners.

Our efforts to connect with and expand our community have paid off significantly. A particularly successful week on Twitter saw our follower count surge by 15.5% between October 21–28, thanks to targeted campaigns and engaging content.

The launch of Testnet V1 has been a testament to the community's enthusiasm and belief in Yala's vision. By the end of October, the engagement statistics were remarkable:

• 85,350 testnet BTC deposited
• $4.15 billion $YU minted
• 85,000 community members actively participating

These achievements reflect the enthusiasm of our community and the immense potential of Yala as we approach our next step.

What's Next: November

Building on Testnet V1's momentum, we're thrilled to announce the launch of Testnet V2 this November. This next phase introduces advanced functionalities, including new yield-bearing structures and refined product features—all designed to enhance the user experience.

We're excited to meet our community at Devcon in Bangkok this November. If you're in the area, join us to explore the future of Bitcoin liquidity integration and connect with our team.

October has set the stage for Yala’s transformative journey. With the successful completion of Testnet V1, a strong community foundation, and solid backing from leading industry investors, Yala is poised to redefine Bitcoin’s role in DeFi.

Stay tuned as we take the next step with Testnet V2 and continue building toward our vision of bridging Bitcoin liquidity across blockchains. Let’s grow together!