Derived from Odaily, a DeFi community named YAM reported that Yala's stablecoin YU has shown concerning activity. A closely associated address has been borrowing nearly all USDC and YU funds from Euler's Yala Frontier market at high interest rates without repaying. The market's utilization rate is now at 100%, preventing lenders from withdrawing liquidity. Euler has set the lending limit for Yala's market to zero, and Yala has not responded to either Euler or the community. YU remains pegged on Solana with nearly $1 million in USDC liquidity available for redemption.
Yala Stablecoin YU Shows Risky Lending Behavior on Euler
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