Only use 10 u to make Bitcoin whales obediently work for retail investors. What happened to the 1,800 BTC whale sisters who fought for their rights? I haven't paid much attention, but this farce has made us small retail investors see clearly that while the colluding BTC staking whales are indeed detestable, they are also a vulnerable group. The staking protocol did not understand or design for the real needs of whales and institutions. Let’s dive in! ⬇️ In Bitcoin staking, most of what we encounter is "borrowing fake to repair the real," fake Bitcoin earning interest, and real token issuance for cashing out. So after that wave of enthusiasm, I only focus on two directions in this sector: real returns and infrastructure. Are you feeding sheep? The Emperor's New Clothes: Bitcoin holders are the group with the lowest risk appetite in the market, but while they have the lowest returns, they also face liquidation and confiscation risks. Who would play with you? Therefore, institutions and whales holding large amounts of Bitcoin would rather use decentralized institutions for collateralized lending than participate in so-called BTCFi. I have talked to many Bitcoin whales, and they first ask about security, such as whether it is self-custodied, whether there are liquidation and confiscation risks; only then do they ask where the returns come from, what they are, and what the annualized rate is. The market has been tarnished in recent years, so if you talk to whales about staking to earn new protocol points that can be exchanged for tokens later... goodbye to you. Self-custody + zero liquidation + native liquidity = the real needs of institutions/whales. Who can meet this? Yala @yalaorg. Yala claims to be the native liquidity layer for Bitcoin, allowing users to borrow stablecoins $YU by over-collateralizing BTC, which can then be used to earn money in DeFi and RWA protocols across multiple public chains like Ethereum and Solana. It seems quite ordinary and nothing special, right? The uniqueness lies in the details. Let me fully demonstrate how whales and retail investors are connected through $YU, so we can better understand the brilliance of Yala. / Step 1: Deposit into CDP CDP: Collateralized Debt Position, which is essentially a collateralized debt position. This is Yala's smart contract that allows users to borrow $YU stablecoins by collateralizing BTC or other Bitcoin assets. The requirement for CDP is over-collateralization, with a minimum of 110%. How to deposit? Time lock + multi-signature, deposit BTC into a self-custody wallet, retain private key control but need to co-sign with Yala's Notary Bridge to withdraw early. Step 2: Mint $YU $YU is a stablecoin pegged 1:1 to the US dollar, which can be used in various DeFi and RWA protocols across multiple chains. Minting $YU means borrowing money from the protocol, which will incur a Stability Fee. Once minted, $YU goes directly into the wallet. Go ahead, liquidity mining, lending protocols, and RWA investments are gradually supported. BTC is locked in the CDP, but liquidity is released. If the price rises, it's a double win; if the price falls, will it be liquidated? Not necessarily, I will explain how Yala achieves zero liquidation later. Step 3: Pay interest The Stability Fee is the interest that whales must pay to maintain their CDP borrowing position. It is 9% annualized, paid in $YU. 9% is not cheap; why would whales or institutions be willing to pay this interest? Safety and profit. Safety refers to Yala's use of self-custody and CRSM to ensure BTC security and zero liquidation risk, which is much better than centralized platforms or high-risk Restaking protocols; profit, $YU earns 12% to 20% in the ecosystem, so after covering the interest, there is still profit, plus early incentives, Yala offers a 12x interest subsidy reward for early CDP users. Wait, what is CRSM? CRSM: Collateral Ratio Self-Stability Module, this is a collateral ratio self-stabilizing module. When the CDP collateral ratio approaches the liquidation line, it automatically withdraws funds from $YU earnings to repay debts, thus dynamically maintaining the healthy collateral ratio of the CDP and preventing liquidation. Step 4: Retail investors get the soup Is it all whales playing? Not at all, retail investors are more important; if whales eat meat, retail investors must have soup to drink. As mentioned above, whales have to pay the Stability Fee, right? Who do they pay it to? 80% goes to retail investors. Retail investors can exchange USDC for $YU at a 1:1 ratio through the PSM module, depositing into the Stability Pool to provide the liquidity needed for the protocol's liquidation. When the collateral ratio < 110%, the protocol will activate the Stability Pool to repay the debts of unhealthy CDPs. So retail investors not only earn interest but can also receive 8% of the total debt as liquidation penalties. Feeling confused again 😧, isn't it zero liquidation? Why is there liquidation again? Yala's mechanism prioritizes CRSM intervention, with liquidation as a backup mechanism; in extreme cases, liquidation is still necessary. / To summarize, Yala is like a bank: Whales or institutions are the loan customers, pledging assets (BTC) to borrow money ($YU) from the bank, paying 9% annual interest (Stability Fee) to do business (DeFi, RWA). Retail investors are deposit customers, depositing money (USDC - $YU) into the bank's safe (Stability Pool), earning interest (80% of the Stability Fee), and if assets are liquidated, they can also gain additional income. $YU connects whales and retail investors, achieving a win-win situation: whales gain safe and efficient liquidity, while retail investors earn stable returns from the borrowing activities of whales, truly making retail investors the "creditors" of institutions. / Yala's mainnet is live, and there are multiple points rewards for minting $YU. Participate: If you don't know how to generate more returns with $YU, Yala has kindly organized it for you; Pendel and Komino have collaborations, and the head mine can reach 100% APY. Of course, you can also choose to deposit liquidity or directly select the Lite mode for a fixed return of 12% + multiple points like other DeFi. The most important thing I almost forgot: TGE is just around the corner. This is a soft-core popular science article. Through this article, you can have a basic understanding of the following knowledge: ▰ The staking dilemma of Bitcoin whales ▰ Yala activates the native liquidity layer ▰ How to make big whales work for me (not) Author: anymose | A soft-core popular science writer <End of full text>