The DeFi community YAM has issued a warning regarding potential risks associated with the Yala stablecoin $YU. In September, a vulnerability in the LayerZero OFT bridge configuration led to a loss of approximately $7.6 million, though the team claims most of it has been recovered. Recently, a closely linked address borrowed all available USDC and most YU from the Euler Frontier market without repayment, resulting in 100% utilization and preventing lenders from exiting. Euler has set the borrowing limit to zero, but the Yala team has not responded.
Additionally, $YU has almost no effective liquidity on EVM, with the mainnet PSM holding only about $50,000 in USDC, complicating large-scale liquidations. On Solana, $YU remains near its peg with about $1 million in USDC liquidity. While a substantial crisis has not been confirmed, caution is advised.
YAM Warns of Potential Risks with Yala Stablecoin $YU
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.
