This paper investigates a universal PBW-basis and a minimal set of generators for the Hall algebra \(\cal{H}(C_2(\cal{P}))\) , where \(C_2(\cal{P})\) is the category of morphisms between projective objects in a finitary hereditary exact category \(\cal A\) . When \(\cal A\) is the representation category of a Dynkin quiver, we develop multiplication formulas for the degenerate Hall Lie algebra \(\cal{L}\) , which is spanned by isoclasses of indecomposable objects in \(C_2(\cal{P})\) . As applications, we demonstrate that \(\cal{L}\) contains a Lie subalgebra isomorphic to the central extension of the Heisenberg Lie algebra and construct the Borel subalgebra of the simple Lie algebra associated with \(\cal A\) as a Lie subquotient algebra of \(\cal{L}\) .