The Yala Protocol proposes a novel approach to unlock the programmability of BTC assets, focusing on developing a DeFi layer within the Bitcoin ecosystem. The protocol aims to overcome the challenges of implementing complex transactions using Bitcoin's native assets, such as its limited scripting language and scalability issues. Yala's architecture includes an Application Layer, Consensus & Data Availability Layer, Execution Layer, and Settlement Layer, enabling native DeFi transactions for BTC assets while maintaining the security and consensus of the Bitcoin network. The protocol incorporates an overcollateralized stablecoin protocol, an insurance derivatives service, and atomic swap functionality to facilitate seamless interactions between BTC and other blockchain systems. The Yala Finance system features essential components like Vaults, a liquidation algorithm, an automatic stabilizer, and an insurance module to provide a comprehensive DeFi ecosystem for BTC assets. The Yala Protocol's innovative approach aims to unlock the full potential of Bitcoin's blockchain by extending its utility beyond its primary use as a digital currency, enabling the integration of DeFi and other complex applications within the BTC ecosystem.