What is Yala Stablecoin?

Yala Stablecoin ($YU) is part of Yala, a native Bitcoin liquidity protocol. The protocol routes BTC into yield opportunities across decentralized finance and real-world assets. Bitcoin holders can mint $YU to unlock capital via self-custodial, liquidation-free borrowing, creating a BTC-backed stablecoin intended to provide portable liquidity and access to yield.

$YU issuance is described as an exchange of BTC-backed exposure for liquidity. Users pay a stability fee to $YU depositors as part of the borrowing process. Yala's SmartVault module is stated to manage system risk and support efficient yield distribution.