I previously invested some money in Yala, so I was invited to share Yala's technical details, including some exclusive content obtained through verification that was not mentioned in the official documentation. First of all, Yala is a purer version of Bitcoin MakerDAO/SKY that supports printing stablecoins Yu with BTC collateral. Their team is led by Polychain and includes former core members of MakerDAO. A very easy to understand example, based on the current parameters, pledging $110 of Bitcoin can print up to $100 of stablecoin Yu, which can be used as collateral to obtain liquidity. PS: It is similar to yesterday's request by Bill, the director of the US Housing Finance Bureau, for real estate companies to support Bitcoin as collateral 😂 Next, many people will ask a question: Since MakerDAO also supports collateralizing WBTC to print DAI, why would people consider printing BTC as $Yu through Yala? We need to talk about some details now. All BTC staking and printing coins in the world is a two-step process: Step 1: Where does BTC exist? Step 2: How to print stablecoins? The second step is very mature, but the difficulty lies in the first step. For MakerDAO, the true underlying BTC of WBTC is BitGO, a licensed custodian institution located in the United States. This is an independent organization, in a sense 1/1, which has also been criticized by many people in the past, and will not be repeated here. Then, especially after rumors of the BitGO acquisition surfaced, MakerDAO voted to prohibit the deposit of new WBTC within the system. This asset is classified as "secondary custodial collateral" under the Endgame framework and will be gradually phased out unless it regains a fully trusted minimal custodial structure. This is equivalent to Longda voluntarily giving up some market space. For Yala, the first step is as follows: BTC is directly mapped from the Bitcoin mainnet to Ethereum through a cross chain bridge, becoming YBTC. All mapping class cross chain bridges involve two fatal issues, which are who manages the two ends of the bridge. Who will manage BTC on the Bitcoin network? This is further divided into two situations: ordinary users and large users. 1.1 Ordinary users' Bitcoin ultimately entered a 3/5 multi sign. Then, on the basis of multiple signatures, Yala also used Cubist's security hardware. Note that the funds are not held in custody in Cubist. Cubist is a provider of private key management security solutions, and they have a technology that restricts notaries' keys to only sign certain types of signatures, making multi signature more secure. 1.2 The Bitcoin of large investors enters a Bitcoin lock script built using P2WSH, which can be considered as self custody or 2/2 multi signature. During the time lock period, these BTC require signatures from both the major players and Yala in order to be withdrawn; After the time lock deadline, large investors can also withdraw separately. Meanwhile, the YBTC printed by the large investors is managed and managed by Yala. PS: Yala is quite honest here because almost all BTCfi will reach private deals with big players. This is an already public secret, and it is obviously better for Yala to directly bring it to the table. In addition, these BTC are not just lying flat. These YBTCs have also borrowed and printed Yu, which actually increases the liquidity of the protocol. In addition, the P2WSH technology is also very interesting, and there is an opportunity to share it in a separate post. Who will print YBTC on the Ethereum network? Currently, we are using a 9/11 multi signature policy. These 11 people are the 11 notaries of the bridge. According to Yala's description, these notaries are generated from large institutions, investors, node operators, customers, custodians, and centralized exchanges, mainly to verify transactions, such as whether Bitcoin has been received in 6 blocks, and then approve the printing of YBTC. At present, this notary bridge does not have a reward and punishment mechanism and is still in the stage of voluntary operation. However, in the future, Yala Bridge has plans to evolve into a more Permissionless and Trustless cross chain solution, which also includes selection/reward and punishment mechanisms based on economic security. The second step is how stablecoins are printed. Because through the first step, BTC has become YBTC and arrived on Ethereum, so Ethereum's Turing complete EVM can now achieve all remaining functions. Considering that this part of the code itself is Fork to MakerDAO, after code auditing, it can be considered that its second step security is equivalent to MakerDAO. The clearing module also clears YBTC, an ERC-20 token, without moving BTC itself on the Bitcoin chain. ----Dividing line---- This is the entire technical framework of the Yala project. After sorting it out like this, it should be much clearer. At present, Yala's TVL has approximately 1200 BTC and has also launched a corresponding points program. Interested friends can learn about @ yalaorg.