Future and Conclusions


While Yala has considered implementing native DeFi solutions for BTC assets, there remain several challenges in ensuring interoperability between BTC and other blockchain networks. The initial approach of directly implementing atomic swaps and locks to facilitate two-way communication between BTC and other assets faces issues such as the lack of guaranteed counterparties, long cross-chain latency, value-blindness, and the risk of fraud.

The common approach adopted by most cross-chain bridges, involving multiple signatures from trusted organizations, could be considered as a potential solution. However, this raises significant security concerns, as it is well-known that many DeFi and cross-chain bridge projects have been subject to insider theft, where the custodians of the managed assets were responsible for the theft of funds. Decentralized asset management requires a higher level of security in cross-chain asset mapping from BTC to other blockchains.

Yala needs to address the problem of how to tolerate untrustworthy multi-signatory parties in decentralized asset management, as well as how to increase the speed of cross-chain transactions. One potential solution could be to decouple transaction confirmation from transaction execution and improve the efficiency of multisignatures, which could significantly increase the speed of cross-chain transactions. Additionally, it might be possible to prevent malicious behavior by ensuring that the benefits of an untrustworthy multi-signatory attacking the managed assets are outweighed by the costs.

Overall, Yala recognizes the need to develop robust and secure cross-chain interoperability solutions to enable the seamless integration of BTC assets with other blockchain ecosystems while ensuring a high level of decentralization and trust in the asset management process.


Yala Protocol is dedicated to building a Defi and programmability infrastructure based on BTC assets. We have designed a native asset interaction protocol based on the BTC mainchain and interoperability mechanisms from BTC to other blockchains. The native operability of BTC assets is implemented based on Modular BRC20, based on overcollateralized stabilization inscriptions, providing a full suite of Vaults module, liquidation algorithm, automatic stabilizer, and Yala Foundation services. Automatic stabilizer and Yala Foundation services. Due to the risk of BTC assets and the long time between BTC blocks, we added an insurance derivatives module, which not only reduces the risk of collateralized lending users but also allows users to use the insurance module to make interest-bearing profits. At the interoperability level, we use atomic exchange to complete the 2-way peg of BTC to other blockchains and utilize the Turing-complete smart contracts of other blockchains to realize the complex logic of operating BTC assets.

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