Yala, a Bitcoin liquidity protocol and stablecoin issuer, has successfully completed its seed funding round which was 3x oversubscribed. The round was co-led by Polychain Capital and Ethereal Ventures, with participation from several other prominent investors. The funds will be used to expand Yala’s engineering, growth, and security teams in anticipation of its mainnet launch.
Yala’s goal is to unlock Bitcoin liquidity by creating a protocol that combines stablecoin issuance with multi-chain ecosystems. Its modular architecture supports cross-chain deployments on EVM-compatible platforms like Ethereum, as well as non-EVM systems such as Solana. This enables greater Bitcoin composability and drives a connected Bitcoin DeFi ecosystem.
Several key investors have expressed their support for Yala’s vision, stating that the protocol will bridge the liquidity gap in the Bitcoin ecosystem and unlock new opportunities for Bitcoin-related DeFi innovation. The Yala protocol features three main components: an overcollateralized stablecoin protocol, MetaMint for minting stablecoins directly from the Bitcoin mainnet on the destination chain, and an insurance derivatives service providing comprehensive insurance solutions within the DeFi ecosystem.
Yala’s multi-token system aims to boost Bitcoin cross-chain liquidity, featuring $YU (a Bitcoin-backed stablecoin) and $YALA (the governance token of the Yala ecosystem). $YU allows Bitcoin holders to potentially earn yields across various cross-chain DeFi protocols while maintaining the security and stability of the Bitcoin network.
Yala is set to release its testnet in the coming weeks, with several key developments planned, including testnet V0 featuring $YU stablecoin issuance and Pro Mode, testnet V1 featuring $YU stablecoin Lite Mode with meta yield, and the V1 release including an insurance module and security upgrades.
The team behind Yala is working towards building a robust liquidity layer that connects Bitcoin to major Layer 1 and Layer 2 ecosystems. As they progress towards their mainnet launch, they encourage the community to participate in the upcoming testnet. For more information and to stay updated on Yala’s progress, users can visit the Yala website.
Source: Yala