Product
1. What is the overcollateralization ratio and how are interest rates calculated? Are they the same for both native BTC and wBTC? (any other forms of BTC used?)
The Yala Foundation sets the over-collateralization ratio, currently at 75%, while interest rates are determined by market dynamics, driven by supply and demand. Collateralization ratios vary by asset type, reflecting different risk factors and stability fees. Yala governance will regularly assess and adjust minimum collateral ratios to ensure they align with market conditions and accurately reflect the risks associated with various BTC assets.
2. How much time would it take to either collateralize assets or stake on different DeFi protocols across ecosystems?
Depositing and withdrawing the native BTC depend on the Bitcoin block time, so 10 minutes. However, generating stablecoins and various calculations rely on the target VM chain's block time.
3. What are the sources of income for the protocol?
Our revenue stream comprises the following sources:
DeFi
Staking on nodes on partners protocol: 5-17% APY
DeFi pools: 5-10% APY
Liquidity mining on early blockchain launch: 10-67% APY
Restaking rewards (with the same collateral): TBD APY
Yala Savings Rate (YSR) - similar to DSR: 5% APY
Yala tradFi offering - including RWA (see our post): : 6-8% APY
Yala token rewards: APY TBD
Borrowing costs: 5-7% compounded daily.
Net margins = 7-60% APY
4. How do you source risk models?
Sourcing effective risk models requires blending traditional financial approaches with DeFi's unique characteristics. The main avenues to source and develop risk models are as follows:
On-chain activity monitoring: data aggregation of the activities on-chain, from individual wallets to DeFi protocols, allows us to create real-time risk profiles.
Backtesting: Leveraging simulation and machine learning models based on historical data (whole trading volumes at the minute ticker) helps Yala understand the implications of a given event and adjust the risk parameters accordingly.
Audit & vulnerability analysis: By undergoing audits and analyzing the audit reports from other partner protocols mitigates risks when implementing a risk model
Anti-Sybil attack - Trusta labs
Anti crypto crime - TRM labs
5. Who do you see as the ideal user of Yala?
We have segmented our ideal user profile into three sub-categories:
BTC miners/whales (40%): This group of people was reluctant to engage their BTC as they don’t trust the wrapping protocols nor bridges because of the centralization and complexity risks that could lead to the loss/hack of their assets.
Retail investors (15%): These people are long-time believers in Bitcoin and would love to leverage their dormant BTC to earn extra yields safely.
Crypto asset management firms (45%) (more Asia-based now, such as Hashkey or Amber Group, but Western funds would also come into the picture over time): Those firms offer stablecoin staking rewards and have some pressure to generate those yields that are often coming from part of the transaction fees they earn or revenue from trading strategies. Both sources are variable, and trading strategies, if not executed correctly, could even result in losses. Those firms are actively looking for “risk-free” yields, aka those generated by other DeFi platforms.
6. What is your GTM strategy?
Our go-to-market strategy focuses on:
Pre-launch Stage: Build recognition for the Yala Protocol, aiming to partner with 10-15 key projects and grow our community to 50,000 members.
Launch Stage: Achieve widespread adoption of our architecture, lending protocol, and stablecoin. Success will be measured by the ecosystem's Total Value Locked (TVL) and establishing around 10 distribution channels with exchanges, wallets, and payment platforms for user accessibility.
Post-launch, Develop a decentralized governance framework, aiming for a foundation governed by and belonging to the DAO.
This strategy leverages the network effect, with partners, community, and developers as vital stakeholders. The token will catalyze network growth, enabling decentralized collaboration. Additionally, decentralized governance ensures fair revenue allocation among participants.
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