Yala and Stacks Join Forces to Bring Velocity to the Bitcoin DeFi Ecosystem
Yala, a project that connects Bitcoin liquidity with a meta yield stablecoin, is thrilled to announce a strategic collaboration with Stacks, the leading Layer 2 solution renowned for introducing smart contract capabilities and programmability to the Bitcoin ecosystem. This partnership is poised to significantly boost the liquidity within the Bitcoin DeFi ecosystem, heralding a new era of enhanced functionality and expanded possibilities in Defi.
Stacks is an innovative Layer 2 solution, which enables smart contracts and decentralized applications to use Bitcoin as an asset and settle transactions on the Bitcoin blockchain. Since its inception, Stacks has fostered the development of a comprehensive suite of DeFi protocols, establishing itself as a leader in the Bitcoin DeFi sector. On April 22, 2024, Stacks began rolling out the Nakamoto upgrade, a significant hard fork designed to enhance network capabilities, including increased transaction throughput and full Bitcoin finality. This upgrade will further bolster the DeFi ecosystem infrastructure on Stacks.
Yala’s offerings include a programmable module that supports lending protocols, facilitates stablecoin issuance, and addresses interoperability challenges within Bitcoin’s DeFi ecosystem. Committed to innovation, Yala provides the infrastructure necessary for a comprehensive range of DeFi applications. These include borrowing, staking, and insurance, as well as $YU — a stablecoin backed by Bitcoin and based on an inscription protocol. Yala’s approach not only enhances utility but also paves the way for a more cohesive and interconnected DeFi ecosystem.
The initial partnership centers on the integration of $YU with a selection of Stacks DeFi protocols, including but not limited to Bitflow, Alex, Velar, and Zest. This collaboration encompasses a variety of services from Bitcoin exchanges, order books, and Automated Market Makers (AMM) to swaps and lending protocols. As a Bitcoin-native stablecoin, $YU, backed by Bitcoin and minted on Bitcoin, aims to bring stability and liquidity to the Stacks DeFi ecosystem through a decentralized and secure approach. Simultaneously, these protocols are poised to significantly amplify $YU’s adoption and utility, which not only introduce new use cases and accessibility but also bring a sophisticated community of Bitcoin DeFi enthusiasts to $YU.
In the future, we aim to further our collaboration by exploring architectural innovations and other potential opportunities, promising to drive innovation in the Bitcoin ecosystem.
About Stacks
Stacks is a Bitcoin L2 that enables smart contracts and decentralized applications to use Bitcoin as a secure base layer. The 2024 Nakamoto and sBTC releases will bring faster speeds and transactions backed by 100% Bitcoin finality. Stacks is the current leading Bitcoin L2 by developer traction and market cap and is poised to help unlock Bitcoin and its $500B in passive capital as a fully programmable, productive asset. The Stacks (STX) token, used as gas on the L2, was the first to undergo an SEC-qualified sale in the United States. The project explicitly decentralized with the mainnet launch in 2021. In the Stacks ecosystem, there are currently 30+ contributing entities including a non-profit Stacks Foundation, a developer tooling company Hiro, Xverse, Trust Machines, Mechanism, Bitcoin L2 Labs, ALEX, Bitcoin Frontier Fund, and more.
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, all while maintaining the security of Bitcoin’s infrastructure.
