Yala Protocol is a framework designed to enable programmable assets and DeFi infrastructure on Bitcoin. It addresses Bitcoin's scripting limitations and scalability through a modular architecture with distinct layers for consensus, data, execution, and settlement. This preserves Bitcoin's security while enabling complex transactions.

The protocol utilizes over-collateralized BTC-backed assets and atomic swaps for cross-chain interoperability. This transforms Bitcoin into a foundation for sophisticated financial applications, facilitating yield generation and expanding its utility beyond a simple store of value.