I saw in the news that @ yalaorg Yala's TGE is scheduled for next week, which is the time when Big Pancake has just reached a new high, Second Pancake has climbed the peak, liquidity is abundant, and emotions are low. Looking back, Babylon's TGE time was accidentally chosen in mid April, which is the only time this year when the market dropped below 80K. It's really a matter of time and destiny. Someone once asked what the difference is between the two being BTC Fi. Today, on the eve of TGE, I will open a post to talk about it. Firstly, it is the implementation method of the protocol. Babylon will have its own independent L1 in the future, using Bitcoin collateral as an additional security guarantee, with a status somewhat similar to Bitcoin sidechains. Specifically, BABY holders are responsible for running PoS nodes and generating blocks; And the Bitcoin mortgagor is responsible for verification and final signature. The advantage of this is that independent L1 has faster performance and greater degrees of freedom. Yala, on the other hand, directly uses Ethereum as the settlement layer and does not issue its own chain, which is equivalent to an encapsulated version of Bitcoin. In this way, the chain security is guaranteed by Ethereum, and the bottleneck of protocol security mainly lies in cross chain bridges and multi signature. The advantage of this is that adopting Ethereum will provide better compatibility, and obviously, product development will also be faster. The product goals of the two are also different. After Babylon has its own L1, like other public chains, it will focus on DeFi, RWA, and various applications. The main focus is on being large and comprehensive. After Yala crossed BTC onto Ethereum, she focused on the stablecoin track. It allows YBTC to over collateralize and generate stablecoins YU (similar to the ETH over collateralization in MakerDAO to generate DAI/USDS), so YALA specializes in stablecoins. Considering the recent smooth progress of the Genius Act, we have also timely borrowed the opportunity. More and more people are realizing that the killer applications of blockchain are actually Bitcoin, Ethereum, and stablecoins, and the applications built around them hope to add icing on the cake.