.jpg "Bitcoin Stablecoin Yala Secures $8M in Seed Funding")
October 10, 2024 – Yala, a pioneering DeFi protocol focused on developing Bitcoin-backed stablecoins, has successfully closed an oversubscribed $8 million seed funding round. The round, co-led by prominent blockchain investment firms Polychain Capital and Ethereal Ventures, saw enthusiastic participation from a diverse range of investors, including Galaxy Vision Hill, Anagram, Amber Group, ABCDE, Ambush Capital, GeekCartel, HashKey Capital, L2 Iterative Ventures (L2IV), SatoshiLab, UpHonest Capital, UTXO Management, and 280 Capital. This significant investment, achieved at a 3x oversubscription rate and following over 2,000 BTC in committed deposits from investors, will fuel Yala's mission to seamlessly integrate Bitcoin liquidity into the broader DeFi ecosystem.
Unlocking Bitcoin's Potential Through a Multi-Chain Stablecoin Ecosystem
Yala's core offering is $YU, a Bitcoin-collateralized stablecoin soft-pegged to the US dollar. $YU provides stability for transactions and enables yield generation within DeFi, addressing the current liquidity gap in the Bitcoin ecosystem. By leveraging Yala's innovative protocol, Bitcoin holders can actively participate in DeFi platforms across various Layer 1 and Layer 2 ecosystems without selling their Bitcoin holdings.
Yala's modular architecture is designed for cross-chain deployments, supporting both EVM-compatible platforms like Ethereum and non-EVM systems like Solana. This interoperability enhances Bitcoin composability and fosters a connected Bitcoin DeFi ecosystem, driving innovation and growth within the space.
Key Investors Voice Strong Support for Yala's Vision
The investment from industry giants Polychain Capital and Ethereal Ventures underscores the confidence in Yala's potential. Polychain Capital stated, "Our strategy is to invest in and support founders building an ecosystem driven by strong synergies. Through its stablecoin, Yala will bridge the gaps, enabling our Bitcoin ecosystem to thrive with robust liquidity."
Min Teo, Managing Partner & Co-founder at Ethereal Ventures, echoed this sentiment: "Yala's approach addresses the current liquidity gap in the Bitcoin ecosystem. Their first-mover advantage, paired with the excellent execution speed of the team, will unlock new opportunities in BTC-related DeFi innovation. EV is thrilled to be supporting their journey."
Yala's Multi-Faceted Approach to Bitcoin Liquidity
Yala's protocol comprises several key components:
- Overcollateralized Stablecoin Protocol: $YU, the Bitcoin-backed stablecoin, ensures security and stability by maintaining a collateralization ratio greater than 100%.
- MetaMint: This innovative feature allows for the direct minting of $YU stablecoins from the Bitcoin mainnet onto the destination chain, streamlining the process and enhancing efficiency.
- Insurance Derivatives Service: Yala is developing a comprehensive insurance solution to mitigate risks within the DeFi ecosystem, further bolstering confidence and security for users.
Yala's dual-token system, featuring $YU and the governance token $YALA, is designed to maximize Bitcoin cross-chain liquidity. $YU allows Bitcoin holders to potentially earn yields across various DeFi protocols while benefiting from the security and stability of the Bitcoin network. $YALA will empower the community to participate in the governance of the Yala ecosystem.
Roadmap to Mainnet and Beyond
Yala is poised for its testnet launch next week, with a phased rollout planned:
- Testnet V0: $YU stablecoin issuance and Pro Mode.
- Testnet V1: $YU stablecoin Lite Mode with meta yield.
- V1 Release: Insurance module and security upgrades.
- V2 Launch: Governance framework initiation.
"Yala is revolutionizing Bitcoin's role in decentralized finance," said Vicky Fu, Yala Co-founder and CTO. "By issuing Bitcoin-backed stablecoins and creating programmable cross-chain modules, we're not just enhancing liquidity, but we're building a bridge that connects Bitcoin to the wider DeFi ecosystem, unlocking unprecedented opportunities for innovation and growth."
About Yala
Yala is building a Bitcoin liquidity layer to connect Bitcoin to multi-chain ecosystems, unlocking its full potential. The protocol's modular design supports deployments across both EVM and non-EVM compatible chains, fostering a robust and interconnected Bitcoin DeFi ecosystem. Yala's key features include an overcollateralized stablecoin protocol, an insurance derivatives service, and MetaMint functionality, enabling seamless liquidity between Bitcoin and other blockchain ecosystems.
About Polychain Capital
Polychain Capital is a leading investment firm focused on blockchain technology and digital assets. They invest in and support projects that are building the future of the decentralized web.
About Ethereal Ventures
Ethereal Ventures is a global venture capital firm focused on supporting early-stage blockchain projects. They invest in innovative teams building decentralized applications and protocols.
Compiled by CMO Intern team
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