Singapore, April 12, 2024 (GLOBE NEWSWIRE) --
Yala, a liquidity and stablecoin protocol, is excited to unveil its new vision for the future “to create a thriving, open ecosystem that unlocks the full potential of DeFi on Bitcoin”. This ambition reflects Yala's dedication to catalyzing mass adoption of decentralized finance on the world's most resilient blockchain, Bitcoin while upholding its core principles of security and decentralization.
Yala achieves this by issuing its stablecoin $YU on Bitcoin and weaving it into a decentralized indexer network and Oracle through innovative meta protocols. This integration facilitates a direct linkage of Bitcoin assets with various blockchain environments, encouraging robust participation in the DeFi domain.
“Bitcoin faced challenges in meeting the rapidly evolving demands of DeFi applications due to its architectural constraints, such as block size and throughput limitations." said Vicky Fu, co-founder of Yala Labs.
To capitalize on DeFi opportunities without compromising security and decentralization, Yala has adopted advanced scalability techniques, similar to how sharding and rollups have enhanced scalability on Ethereum. Meanwhile, Yala's adoption of modular design has enabled the seamless integration of DeFi-specific functionalities into Bitcoin. Acknowledging the complexities and dependencies of existing Bitcoin layer 2 solutions, Yala pledges to pursue more integrated and user-friendly alternatives in close collaboration with the community.
Guided by architectural considerations, Yala has adopted a modular approach founded on the Ordinals protocol's groundbreaking inscriptions. The modular approach allows Yala to deploy modules on various environments, including EVM-compatible platforms like Ethereum and non-EVM systems like Solana. This pioneering move has allowed Yala to bring programmable smart contracts and DeFi applications to the Bitcoin blockchain for the first time. Thus, the stablecoin $YU issued by Yala offering will incorporate lending/borrowing protocol, liquidity pools, and governance contracts, all backed by formal verification to ensure mathematical correctness.
To ensure a robust and trustworthy system, Yala is developing a decentralized indexer network supported by federated voting. This approach aims to mitigate the risks of centralization inherent in centralized BRC-20 indexing. Simultaneously, stringent data verification and consensus protocols are being implemented to guarantee the accuracy and integrity of token balance information. At the execution layer, Bitcoin asset management leverages Bitcoin vaults using threshold signatures for robust security without single points of failure. Furthermore, Yala's decentralized Oracle network also provides tamper-resistant real-time price data, which is critical for managing liquidations and maintaining the stablecoin peg.
“At Yala, our vision is to create a thriving, open ecosystem that unlocks the full potential of DeFi on Bitcoin.” said Vicky Fu, Co-Founder and CTO of Yala, "Looking ahead, we are excited about the path we are forging. Our vision is ambitious, but with our talented team, supportive partners, and the trust of our customers, we are confident in our ability to achieve it."
Yala extends a warm invitation to all stakeholders to join this groundbreaking exploration of DeFi possibilities on Bitcoin.
About Yala
Yala connects Bitcoin liquidity with a meta-yield stablecoin. Designed as both a potent asset and a liquidity enhancer, the stablecoin $YU operates across various ecosystems, increasing efficiency without the need for bridges or relocating the underlying Bitcoin. Yala empowers Bitcoin holders and ecosystem participants with expanded utility while maintaining the security of Bitcoin's infrastructure.
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