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The stablecoin YU under Yala has fallen off its peg, reaching 0.47 USD.

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On November 17, according to market data, Yala's stablecoin YU has de-pegged and fallen to 0.47 USD. Yala stated yesterday that it has noticed recent community concerns and is actively investigating, with more updates expected soon. On November 15, the DeFi community YAM published a statement indicating that Yala's stablecoin YU is experiencing suspicious circumstances, as related addresses are borrowing USDC at extremely high interest rates but have not repaid. An address closely related to Yala is fully borrowing USDC and most of the YU funds from the Yala Frontier market on Euler, and despite interest rates remaining high, there has been no repayment action. Currently, the market's fund utilization rate has reached 100%, which means lenders cannot withdraw any liquidity. The Euler team has also set the borrowing limit for Yala's market on Frontier to zero. YAM added that YU is still maintaining its pegged exchange rate on Solana, with nearly one million USD in USDC available in its liquidity pool for pegged price exit. This article serves more as a risk warning, and it is still uncertain whether Yala is truly in trouble.

YALA7.89%
EUL-4.13%
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