Yala Updates: September

September was a big month for Yala with a number of significant protocol developments, fantastic events across Korea & Singapore, and final preparations for the launch of the upcoming Yala testnet. Amongst all of this, the unwavering mission of the Yala team to unify and expand Bitcoin liquidity remains, and we are excited to unveil all our hard work over the coming weeks.

In this update we will cover a number of things including:

• Yala Protocol Development
• Explainer: How Does Yala Work?
• KBW & TOKEN2049 Recap 🇰🇷🇸🇬
• What's Next: October

As the Bitcoin DeFi ecosystem continues to evolve, it is poised to unlock new levels of financial empowerment and innovation.

With Bitcoin's unmatched security and decentralization at its core, protocols like Yala are at the forefront of this transformation. The future holds a landscape where users can seamlessly access lending, borrowing, and yield generation without intermediaries, all while maintaining the robust trust of Bitcoin's network.

As we move forward, the growing integration of Bitcoin into DeFi presents a unique opportunity to reshape traditional finance and expand decentralized access to financial services globally.

Yala is committed to leading this charge, fostering a thriving and inclusive financial future.

Yala Protocol Development

In this section, we dive into the latest technical updates and enhancements to the Yala protocol.

Our team has been hard at work refining the underlying infrastructure to ensure a seamless, secure, and efficient user experience for the upcoming Yala testnet. From upgrades in smart contract functionality to improved performance and scalability, these updates are designed to optimize your interactions with Yala and empower a more decentralized future.

Here's a breakdown of the key developments:

1. Cross-Chain Bridge: The new cross-bridge function will allow users to safely bridge native BTC to destination chains and convert it into YU. In the future, we plan to integrate a notary bridge alongside @FireblocksHQ, tailored to meet evolving user needs.
2. Vault Creation: Development to allow users to create vaults to deposit BTC and mint YU, unlocking a new level of flexibility. Each vault holds both BTC and YU, and users will be able to create multiple vaults for their assets, enabling more control over their YU allocation and usage.
3. Vault Adjustment: The ability to adjust vaults, allowing users to deposit more BTC and mint additional YU or withdraw BTC and repay YU. As long as the vault maintains a safe collateralization ratio, users can freely manage their assets within the vault.
4. Vault Closure: When users wish to close a vault, they can repay the YU amount (along with any interest fees) and withdraw all the BTC. Afterward, the vault will be completely emptied.
5. Liquidation Mechanism: Vaults with collateralization ratios that fall below the minimum threshold will be subject to liquidation. This safeguard kicks in if the value of BTC drops and hits the liquidation price, ensuring the protocol remains stable and secure.
6. Points & Leaderboard System: A point-based system to reward users for their activity on the platform. Through 'Berries', users can position themselves for future Yala airdrops. The leaderboard tracks user rankings based on their earned points.
7. BTC Wallet Support: In Phase 1, Yala will support the OKX and Unisat wallets for BTC, with plans to expand support to additional BTC wallets in the future.
8. YU Staking: Functionality for users to stake YU to earn Berries as rewards. This staking feature is designed to encourage greater participation while offering incentives for contributing to the ecosystem.
9. Functional Testing & Code Review: Our tech team is rigorously testing these new features and conducting comprehensive code reviews to ensure everything is functioning smoothly and is ready for the official testnet launch.

These updates are setting the foundation for a robust and secure experience within the Yala ecosystem, driving us toward an exciting launch.

Stay tuned for more updates as we continue to refine and optimize the protocol!

Explainer: How Does Yala Work?

Yala is a Bitcoin-based asset protocol designed to channel Bitcoin liquidity into multiple ecosystems using $YU, a Bitcoin-collateralized stablecoin pegged to the USD. With Yala, users can deposit BTC and mint $YU, which can then be used across the broader DeFi space to earn yield and secure the underlying network.

So, how does Yala actually work?

Yala’s integrated lending protocol allows users to generate $YU by locking collateral, including Bitcoin and LRT/LSD assets:

1. Deposit Collateral: Deposit BTC or other accepted assets into Yala to create a CDP.
2. Mint $YU: The collateral is used to mint $YU, an over-collateralized stablecoin pegged to the USD.
3. Generate Yields: Earn yields with $YU through DeFi activities incl lending, staking, LPing, quant trading strategies and more.

KBW & TOKEN2049 Recap 🇰🇷🇸🇬

The Yala team recently wrapped up an exciting two weeks attending Korea Blockchain Week in Seoul and TOKEN2049 in Singapore.

These events provided a unique opportunity for us to present our vision for the future of Bitcoin DeFi and connect with key players in the global blockchain community. From insightful panel discussions to productive networking sessions with other leading DeFi protocols, we forged new partnerships, gathered valuable insights, and showcased Yala’s innovations.

Panels from the Yala team included:

• Connecting Bitcoin liquidity with a meta yield stablecoin YU.
• Velocity Unleashed: Maximizing Bitcoin Liquidity Potential
• Unlocking Bitcoin’s Liquidity: Meta Protocols, Stablecoins, and Advancing Path
• Evolving Bitcoin: Scaling and Innovating beyond Store of Value
• The Future of Liquid Restaking Tokens (LRTs) and Their Impact on DeFi
• & many more.

For a full recap of Yala's trip, check out our post below:

What's Next: October

October is set to be a monumental month for Yala, with several key developments that will shape the future of our protocol. We’re excited to share more about the technical progress made in September, including the introduction of our cross-chain bridge, vault management features, and YU staking rewards.

These updates have laid the foundation for our next big step: The launch of the highly anticipated Yala testnet.

The Yala testnet will give users the chance to interact with the protocol, create and adjust vaults, stake YU, and experience firsthand the innovative features we’ve developed. This is a crucial phase as we prepare for the full mainnet release, and your feedback will help us refine the platform to ensure a seamless experience.

In addition to the testnet, we’ll also be announcing an exciting new fundraising round that will help accelerate Yala’s growth and expand our ecosystem.

We’re thrilled to have new partners joining us on this journey as we continue to push the boundaries of Bitcoin DeFi.October marks the beginning of an exciting chapter for Yala, and we’re looking forward to sharing more as we drive toward our full launch.

Stay tuned for more updates and announcements as we enter this pivotal phase!