Euler Labs has announced the immediate disabling of the RLP collateral functionality in its Euler Yield vault on Arbitrum following a security incident involving unauthorized USR issuance. The company is actively investigating the issue, which was initially reported by Resolv. As a precaution, Euler Earn USDC (Arbitrum) has also ceased allocating funds to Euler Yield. These actions aim to mitigate potential risk exposure, with the full impact of the incident still under assessment. Euler Labs has committed to providing further updates as the situation develops.