Yala?s Bitcoin-Backed Stablecoin YU Depegs to $0.20 After Unauthorized MintYala?s dollar-pegged YU stablecoin fell sharply over the weekend, trading between $0.20 and $0.30 depending on venue, after what the team called an ?attempted attack.? In statements and follow-ups, Yala said the incident was contained, that it?s cooperating with security firm SlowMist, and that it would restore liquidity pools and allow users to redeem YU for USDC at a 1:1 rate.
What exactly happened
Coverage from multiple outlets and on-chain analysts points to an unauthorized token mint on Polygon that flooded supply and broke the peg:
The Block reported that an attacker minted 120 million YU, triggering the depeg.
ForkLog recapped the team?s posts, noting YU slumped to ~$0.30 on Uniswap on Sept. 13, later clawing back part of the loss; the team said it had identified the stolen assets, contacted law enforcement, and emphasized that Bitcoin collateral remained safe.
Cointelegraph said YU dropped as low as ~$0.2046 during the episode and has struggled to restore the peg.
ForkLog also summarized Lookonchain?s trace: the attacker sold ~7.71M YU for ~7.7M USDC across Ethereum and Solana, then bought ~1,501 ETH and split funds among wallets; tens of millions of YU reportedly remain on Polygon and other chains.
What Yala says
[urlhttps://ybex.io/blog/crypto-news/yalas-stablecoin-yu-depegs#what-exactly-happened]🔝 Read the full article this link[/url]
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