Yala’s YU stablecoin fails to restore peg after ‘attempted attack’
Yala’s Bitcoin-collateralized YU stablecoin dropped as low as $0.2046 after an attempted protocol attack, failing to restore its $1 peg.
Yala’s Bitcoin-backed stablecoin YU has failed to regain its dollar peg following an “attempted attack” early Sunday that sent the token plummeting to $0.2046.
The Yala team confirmed the incident in a post on X, noting that it “briefly impacted YU’s peg.” The team added that they are working with blockchain security firm SlowMist and other security partners to investigate the breach.
“Update: All funds are safe. Bitcoin deposited to Yala remains self-custodial or in vaults, with none lost,” the team wrote in their latest post on X. “We’ve identified issues and, as a precaution, paused some product features. Please wait for our green light before re-engaging,” they added.