Wu said that the DeFi community YAM published a notice indicating that the Yala stablecoin $YU has potential risks: In September, a configuration vulnerability in the LayerZero OFT bridge resulted in a loss of approximately $7.6 million. The team claims to have recovered most of it, but recently a deeply connected address borrowed all USDC and most YU on the Euler Frontier market without returning it, leading to a utilization rate of 100% and lenders being unable to exit. Euler has set the borrowing limit to 0, but the Yala team has not responded. Meanwhile, $YU has almost no effective liquidity on the EVM, with the mainnet PSM only having about $50,000 USDC, making large liquidations difficult. Currently, $YU is still close to pegged on Solana with about $1 million USDC liquidity. It has not yet been confirmed whether a substantial crisis has emerged, but caution is advised.
