YU, issued by YALA LABS, is a Bitcoin-backed, over-collateralized stablecoin pegged to the U.S. dollar (USD) at a 1:1 ratio, minted against collateral through self-custodial smart contracts rather than against a centralized fiat reserve [S1][S2].

Holders obtain YU by staking Bitcoin into wrapped YBTC, depositing YBTC as vault collateral, and minting YU, or by converting USDC to YU at a 1:1 zero-slippage ratio [S1][S3][S4]. Each YU references one USD. Vault minters bear a Stability Fee, a Liquidation Cost Reserve of 200 YU plus min(0.5% of YBTC, 0.05 YBTC), and a staking fee of 0.0003 BTC per transaction [S1][S3]. Optional sYU savings, Stability Pool staking, and DeFi strategies accrue yield [S5].

YALA LABS operates the protocol under the laws of the Cayman Islands, with disputes resolved by binding arbitration in George Town under ICC rules [S2]. YALA LABS states it is not currently regulated or subject to the supervision of any regulatory body and is not registered as any type of regulated financial institution [S2]. The Terms neither guarantee nor represent that holding YU entitles holders to any rights [S2]. Access is barred to persons under 18, sanctioned persons, and residents of Belarus, Cuba, Iran, North Korea, the People's Republic of China, the Russian Federation, Syria, and Venezuela [S1][S2]. YU converts back to USDC at 1:1; collateral is non-custodial [S4][S2].

YU is issued onchain natively on Ethereum and Solana, with references to BSC, and cross-chain transfers run bidirectionally between Ethereum and Solana through LayerZero bridging, incurring bridge and gas fees [S1][S6]. Minting deposits YBTC collateral into a vault with an effective minimum near 2,000 YU; redemption converts YU to USDC or repays debt to unstake YBTC [S1][S3][S4][S7].

<Sources
  retrievedAt="2026-06-24"
  items={[
    { id: "S1", url: "https://docs.yala.org/llms-full.txt" },
    { id: "S2", url: "https://docs.yala.org/legals/terms-of-use.md" },
    { id: "S3", url: "https://docs.yala.org/user-guide-mainnet/key-terms.md" },
    { id: "S4", url: "https://docs.yala.org/user-guide-mainnet/convert.md" },
    { id: "S5", url: "https://docs.yala.org/user-guide-mainnet/earn.md" },
    { id: "S6", url: "https://docs.yala.org/user-guide-mainnet/bridge-tool.md" },
    { id: "S7", url: "https://docs.yala.org/user-guide-mainnet/redeem.md" },
  ]}
/>


Stablecoins

Yala allows Bitcoin holders to mint an overcollateralized stablecoin ($YU) against BTC and deploy it across DeFi and RWA strategies to earn yield, charging borrowing and liquidation fees.

Yala is a Bitcoin-native DeFi protocol issuing YU, a Bitcoin-collateralized stablecoin that unlocks BTC liquidity across Ethereum, Solana, and Base ecosystems.

Yala was co-founded by Kaitai Chang (ex-Binance Labs), Bin Liu (co-founder of Alchemy Pay), and Vicky Fu (ex-Circle), with $8M in seed funding from Polychain Capital.

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Stablecoin issuers

Yala

Yala Stablecoin (YU) is a U.S. dollar stablecoin issued by Yala.

Holders can mint and redeem directly with Yala in USDC, and holders have a contractual right to redeem at par.

YU has been issued on public blockchains since May 2025 and is native to Ethereum, Solana, Base, and BNB Chain.

Yala StablecoinYU

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