Why $YU Stablecoin?

Revenue and Profit Model

Problem with Other Stablecoins: Many stablecoins rely on centralized entities to maintain their peg and generate revenue, often through transaction fees or interest on allocation of underlying stablecoin reserves. This model can be limited and heavily dependent on the centralized infrastructure and third-party custodians. Traditionally, these fiat-pegged stablecoin providers allocate their reserves to cash and cash-equivalent assets e.g. short-term t-bills and money-market instruments. These centralised entities keep the full profits on those allocations, while stablecoin users are left with a non-yield bearing stablecoin and counterparty risks.

$YU's Solution:

• Yield Generation: $YU stablecoin protocol enables users to generate revenue by engaging in various DeFi activities, such as lending, liquidity provision, and yield farming. This decentralized approach allows $YU to earn consistent returns, which can be distributed to users.

• Fee Structure: The Yala protocol charges fees on vault creation and maintenance, which are then used to fund the Yala Savings Rate (YSR) payouts. This model ensures that the platform remains profitable while providing sustainable yields to $YU holders, by passing on system generated fees back to its core $YU holders.

Integration and Scalability

Problem with Other Stablecoins: Many stablecoins are limited to specific blockchain networks, which can hinder their scalability and integration into different DeFi ecosystems.These stablecoins are either focused on a single blockchain (e.g. Ethereum) or compatible sets of chains (e.g. EVM-compatible). However, they rarely tap into the biggest and most liquid network i.e. Bitcoin or growing Bitcoin-linked networks e.g. Bitcoin L2s chains.

$YU's Solution:

• Multi-Blockchain Compatibility: $YU is designed to be compatible across multiple blockchain networks, reducing friction and expanding its usability. This compatibility allows $YU to tap into larger pools of liquidity and users, making it more scalable and versatile compared to other stablecoins.

• Integration with DeFi Protocols: The Yala protocol actively integrates $YU with various DeFi protocols, enhancing $YU stablecoin liquidity and ensuring that it can be used across a wide range of DeFi products and strategies. This integration is key to $YU's scalability and widespread adoption in the DeFi space.