On November 17, according to market data, Yala's stablecoin YU lost its peg and plummeted to $0.47, causing a stir in the DeFi community. Previously, on November 16, Yala spoke up to confirm that they were aware of recent concerns from the community and were actively investigating the irregularities; detailed updates will be announced as soon as possible.
On November 15, the YAM DeFi community detected suspicious activity related to YU. Several addresses had borrowed USDC at extremely high interest rates but failed to repay the loans. Notably, an address believed to be directly related to Yala borrowed all of its USDC and a large amount of YU from the Yala Frontier market on Euler, and despite the interest rates remaining high, the loan was not repaid. As a result, the market liquidation is currently at 100%, leaving lenders unable to withdraw any liquidation . Euler also quickly imposed a zero borrowing limit on the Yala Frontier market to prevent further spread of the risk.
