Yala YU Stablecoin Exploit Plunges Token 80% to $0.20
On September 14, Yala YU stablecoin suffered a cross-chain exploit that sent the token plummeting 80% from its $1 peg to $0.20. The attacker minted 120 million YU on Polygon, then sold 7.71 million YU on Ethereum and Solana for 7.7 million USDC. Limited USDC liquidity ($339,000 on Ethereum, $14.9 million on Solana) worsened the depeg. The attacker swapped the USDC for 1,501 ETH, dispersed funds across multiple wallets, and still holds 22.29 million YU on Ethereum and Solana and 90 million YU on Polygon. Yala paused its Convert and Bridge functions to contain risks and confirmed that Bitcoin reserves and user assets remain secure. The team is working with SlowMist and other security experts to investigate the Yala YU stablecoin exploit and strengthen cross-chain defenses. Traders should monitor updates on security measures and liquidity fixes to assess ongoing market risks.
Bearish
The Yala YU stablecoin exploit is expected to have a bearish impact on the token’s market. In the short term, the 80% depeg and paused functions will likely trigger further selling pressure and undermine confidence among traders, leading to increased volatility. Limited USDC liquidity and ongoing investigations may prolong uncertainty around the peg’s stability. In the long term, successful security improvements and cross-chain fixes could restore trust, but recovery will depend on Yala’s ability to fully address vulnerabilities. Overall, the exploit casts doubt on YU’s reliability, exerting continued downward pressure on its price until clear remediation is demonstrated.