Historically, the development of the economy and finance has gone hand in hand with credit creation. Bitcoin as an asset is gradually solidifying its status as a store of value, but from the perspective of credit creation only about one to two percent of BTC is being utilized for additional yield activities, leaving a large scale of liquidity locked.

Bitcoin, due to its fundamental Turing incompleteness and low scalability, makes it difficult to freely enable additional economic activities. There have been numerous attempts to unlock Bitcoin’s liquidity such as BitVM and OP_CAT, but various technical limitations still remain.

Yala is a liquidity layer for Bitcoin. Users can natively deposit BTC on the Bitcoin network and mint YBTC in other ecosystems. They can then issue stablecoins using it as collateral and deploy them in DeFi, RWA, and various applications to generate additional returns.

If the vast dormant liquidity of Bitcoin and the RWA sector meet to create synergy, the DeFi ecosystem will grow to an unprecedented scale. In this market environment, Yala’s positioning can be considered highly attractive.