Yala responds to suspicious activity related to its stablecoin YU: An investigation has been launched and a detailed explanation will be released.

PANews reported on November 16th that Yala, the Bitcoin liquidity provider and its native stablecoin project, announced on the X platform that it has noticed recent community concerns and is actively investigating. More updates will be released soon. It is understood that Yala's stablecoin YU previously appeared to be experiencing suspicious activity similar to USDX. An address borrowed the full amount of USDC and most of YU from the Yala Frontier market on Euler, failing to repay for an extended period at high interest rates, resulting in 100% market utilization and lenders being unable to withdraw. YU liquidity on EVM is low; while the apparent LP size is large, over 90% is YU itself, which is difficult to exchange for other stable assets, posing a significant risk of liquidation and de-pegging. According to Coingecko data, YU is currently trading at $0.97 and has not yet fully returned to its peg.