YU

YU turns idle Bitcoin into a spendable dollar without selling it. Built by Yala Labs, whose founders include alumni of MakerDAO and Circle, the token is minted when a user locks BTC, converts it to the protocol's yBTC representation, and draws YU against a vault requiring at least 200 percent collateral, with automated liquidation if the ratio slips. It is a collateral claim redeemed by repaying the loan through the protocol rather than from a company, and holders can stake it for yield. The design lets Bitcoin holders tap liquidity across chains such as Ethereum, BNB Chain, Solana and Base while keeping their BTC exposure. As an over-collateralized token soft-pegged to the dollar, YU depends on Bitcoin's price and the protocol's liquidations to hold par, and it has faced peg pressure that it works to unwind through those mechanisms.