Daily Yala
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Daily Yala
@DailyYala
Run by the community, for the community. Here, we share the latest updates, engaging events, and all things @yalaorg.





Updates on YU & Liquidity The Yala team is aware of recent liquidity issues, as well as a variety of concerns raised by the Yala community. Below is an updated status report addressing these: 1/ YU liquidity: Incident response & post mortem On September 14, 2025, an exploiter used temporary deployment keys to create an unauthorized cross-chain bridge and extracted 7.64M USDC (or ≈1,636 ETH at the time). While this briefly caused a YU depeg, no core protocol vulnerabilities were involved and all Bitcoin reserves remain safe. To stabilize the protocol and protect user funds, the team injected $5.5M of its own capital and sourced additional liquidity through Euler. As a result, YU fully recovered on September 23, 2025, and the Yala protocol resumed normal operations. 2/ Fund recovery On October 29, 2025, law enforcement in Bangkok apprehended the previously mentioned exploiter. Most of the impacted funds were recovered from the exploiter, though they remain under legal review. Some were converted to ETH prior to recovery with subsequent price declines - along with funds spent by the exploiter - reduced the effective recovery value. We will provide a more detailed update when permitted by ongoing legal processes. 3/ Liquidity impact Recent retail DeFi exodus has contributed to further panic and strained an already illiquid market, affecting Euler as well. As a result, some positions and liquidity previously used to stabilize YU are currently constrained. 4/ Community questions & clarifications Yala is not integrated with Kamino’s lending products, and the wallet below does not belong to Yala or associated team members. “AyCJS5t4kwRauXShpNygmUqhA2xzwjjVvafNTknNV41X” (holding over 30M USDC) 5/ Next steps The team is focused on protecting users and Yala’s long-term operational plan. We are assessing the capital needed to stabilize conditions and are working with law enforcement and funding partners to source it. Given tight liquidity across many protocols and assets, this process will take time. We aim to provide a clear plan by December 15, 2025, including recovery paths, and next operational steps. Thank you for your continued support. - Yala

Updates on YU & Liquidity The Yala team is aware of recent liquidity issues, as well as a variety of concerns raised by the Yala community. Below is an updated status report addressing these: 1/ YU liquidity: Incident response & post mortem On September 14, 2025, an exploiter used temporary deployment keys to create an unauthorized cross-chain bridge and extracted 7.64M USDC (or ≈1,636 ETH at the time). While this briefly caused a YU depeg, no core protocol vulnerabilities were involved and all Bitcoin reserves remain safe. To stabilize the protocol and protect user funds, the team injected $5.5M of its own capital and sourced additional liquidity through Euler. As a result, YU fully recovered on September 23, 2025, and the Yala protocol resumed normal operations. 2/ Fund recovery On October 29, 2025, law enforcement in Bangkok apprehended the previously mentioned exploiter. Most of the impacted funds were recovered from the exploiter, though they remain under legal review. Some were converted to ETH prior to recovery with subsequent price declines - along with funds spent by the exploiter - reduced the effective recovery value. We will provide a more detailed update when permitted by ongoing legal processes. 3/ Liquidity impact Recent retail DeFi exodus has contributed to further panic and strained an already illiquid market, affecting Euler as well. As a result, some positions and liquidity previously used to stabilize YU are currently constrained. 4/ Community questions & clarifications Yala is not integrated with Kamino’s lending products, and the wallet below does not belong to Yala or associated team members. “AyCJS5t4kwRauXShpNygmUqhA2xzwjjVvafNTknNV41X” (holding over 30M USDC) 5/ Next steps The team is focused on protecting users and Yala’s long-term operational plan. We are assessing the capital needed to stabilize conditions and are working with law enforcement and funding partners to source it. Given tight liquidity across many protocols and assets, this process will take time. We aim to provide a clear plan by December 15, 2025, including recovery paths, and next operational steps. Thank you for your continued support. - Yala

⚠️ $YU Yala's $YU was hacked a week back due to an internal authorisation issue, causing a loss of $7m. team acted quickly to repeg and restore liquidity of $YU. However, it was not clear what's the source of funds for covering the $7m hacked. We note that the team address debank.com/profile/0x819c… had some borrowing of USDC from Euler's Yala Frontier Market with $YU as collaterals. It has been increasing its borrowing since 23 Sept. The cost of borrowing USDC has been 60% to 80% per annum for the last two days, as the above team address competed with users who wished to exit. Now it's fluctuating and trending to a normal level. It was not clear to us why the team would borrow at such a high cost, especially when knowingly that some hack-trapped users in Euler were queueing for exit USDC liquidity. It's against the protocol's plan to restore an orderly liquid market for $YU. Now the above team address borrowed a total of $2m USDC. We are monitoring the borrowing rate to establish the marginal cost of team's borrowing, as an additional source of info to verify if the protocol is well-funded.

Updates on YU & Liquidity The Yala team is aware of recent liquidity issues, as well as a variety of concerns raised by the Yala community. Below is an updated status report addressing these: 1/ YU liquidity: Incident response & post mortem On September 14, 2025, an exploiter used temporary deployment keys to create an unauthorized cross-chain bridge and extracted 7.64M USDC (or ≈1,636 ETH at the time). While this briefly caused a YU depeg, no core protocol vulnerabilities were involved and all Bitcoin reserves remain safe. To stabilize the protocol and protect user funds, the team injected $5.5M of its own capital and sourced additional liquidity through Euler. As a result, YU fully recovered on September 23, 2025, and the Yala protocol resumed normal operations. 2/ Fund recovery On October 29, 2025, law enforcement in Bangkok apprehended the previously mentioned exploiter. Most of the impacted funds were recovered from the exploiter, though they remain under legal review. Some were converted to ETH prior to recovery with subsequent price declines - along with funds spent by the exploiter - reduced the effective recovery value. We will provide a more detailed update when permitted by ongoing legal processes. 3/ Liquidity impact Recent retail DeFi exodus has contributed to further panic and strained an already illiquid market, affecting Euler as well. As a result, some positions and liquidity previously used to stabilize YU are currently constrained. 4/ Community questions & clarifications Yala is not integrated with Kamino’s lending products, and the wallet below does not belong to Yala or associated team members. “AyCJS5t4kwRauXShpNygmUqhA2xzwjjVvafNTknNV41X” (holding over 30M USDC) 5/ Next steps The team is focused on protecting users and Yala’s long-term operational plan. We are assessing the capital needed to stabilize conditions and are working with law enforcement and funding partners to source it. Given tight liquidity across many protocols and assets, this process will take time. We aim to provide a clear plan by December 15, 2025, including recovery paths, and next operational steps. Thank you for your continued support. - Yala



Updates on YU & Liquidity The Yala team is aware of recent liquidity issues, as well as a variety of concerns raised by the Yala community. Below is an updated status report addressing these: 1/ YU liquidity: Incident response & post mortem On September 14, 2025, an exploiter used temporary deployment keys to create an unauthorized cross-chain bridge and extracted 7.64M USDC (or ≈1,636 ETH at the time). While this briefly caused a YU depeg, no core protocol vulnerabilities were involved and all Bitcoin reserves remain safe. To stabilize the protocol and protect user funds, the team injected $5.5M of its own capital and sourced additional liquidity through Euler. As a result, YU fully recovered on September 23, 2025, and the Yala protocol resumed normal operations. 2/ Fund recovery On October 29, 2025, law enforcement in Bangkok apprehended the previously mentioned exploiter. Most of the impacted funds were recovered from the exploiter, though they remain under legal review. Some were converted to ETH prior to recovery with subsequent price declines - along with funds spent by the exploiter - reduced the effective recovery value. We will provide a more detailed update when permitted by ongoing legal processes. 3/ Liquidity impact Recent retail DeFi exodus has contributed to further panic and strained an already illiquid market, affecting Euler as well. As a result, some positions and liquidity previously used to stabilize YU are currently constrained. 4/ Community questions & clarifications Yala is not integrated with Kamino’s lending products, and the wallet below does not belong to Yala or associated team members. “AyCJS5t4kwRauXShpNygmUqhA2xzwjjVvafNTknNV41X” (holding over 30M USDC) 5/ Next steps The team is focused on protecting users and Yala’s long-term operational plan. We are assessing the capital needed to stabilize conditions and are working with law enforcement and funding partners to source it. Given tight liquidity across many protocols and assets, this process will take time. We aim to provide a clear plan by December 15, 2025, including recovery paths, and next operational steps. Thank you for your continued support. - Yala

We're seeing some red flags about @yalaorg’s stablecoin $YU. Back in September, $YU's backing lost around $7.6M as a result of a faulty OFT LayerZero bridge setup where an attacker gained unauthorized access to mint $YU. The Yala team claims that they found the exploiter and managed to recover 'majority of affected funds'. The Red Flags: An address deep into Yala is borrowing 100% of the USDC and most of the YU in the Yala Frontier markets and not repaying despite consistent high rates: app.euler.finance/portfolio?spy=… Historic rates can be seen here: eulerscan.xyz/vault?chain=et… The markets are at 100% utilization, meaning there’s 0 free liquidity for lenders to exit. The Euler team also set the borrow caps on their Frontier Yala markets to zero. We're told the Yala team is unresponsive to the Euler team and the users of the Yala discord. There's almost no liquidity for $YU on EVM networks: the LPs might look big at first glance, but they're all >90% $YU, and not USDC or other stablecoins you could sell into. The only bigger liquidity is on Solana, and the $50k in their PSM on Mainnet. Any possible bigger liquidations on Ethereum would be complicated. As of now, YU remains pegged on Solana with almost a million of USDC in the liquidity to exit near peg. This post is more of a warning, we’re not certain whether Yala is actually in trouble.

Updates on YU & Liquidity The Yala team is aware of recent liquidity issues, as well as a variety of concerns raised by the Yala community. Below is an updated status report addressing these: 1/ YU liquidity: Incident response & post mortem On September 14, 2025, an exploiter used temporary deployment keys to create an unauthorized cross-chain bridge and extracted 7.64M USDC (or ≈1,636 ETH at the time). While this briefly caused a YU depeg, no core protocol vulnerabilities were involved and all Bitcoin reserves remain safe. To stabilize the protocol and protect user funds, the team injected $5.5M of its own capital and sourced additional liquidity through Euler. As a result, YU fully recovered on September 23, 2025, and the Yala protocol resumed normal operations. 2/ Fund recovery On October 29, 2025, law enforcement in Bangkok apprehended the previously mentioned exploiter. Most of the impacted funds were recovered from the exploiter, though they remain under legal review. Some were converted to ETH prior to recovery with subsequent price declines - along with funds spent by the exploiter - reduced the effective recovery value. We will provide a more detailed update when permitted by ongoing legal processes. 3/ Liquidity impact Recent retail DeFi exodus has contributed to further panic and strained an already illiquid market, affecting Euler as well. As a result, some positions and liquidity previously used to stabilize YU are currently constrained. 4/ Community questions & clarifications Yala is not integrated with Kamino’s lending products, and the wallet below does not belong to Yala or associated team members. “AyCJS5t4kwRauXShpNygmUqhA2xzwjjVvafNTknNV41X” (holding over 30M USDC) 5/ Next steps The team is focused on protecting users and Yala’s long-term operational plan. We are assessing the capital needed to stabilize conditions and are working with law enforcement and funding partners to source it. Given tight liquidity across many protocols and assets, this process will take time. We aim to provide a clear plan by December 15, 2025, including recovery paths, and next operational steps. Thank you for your continued support. - Yala

The last blackswan was stablecoin related ($UST). The next huge blackswan might still be stablecoin related.

Updates on YU & Liquidity The Yala team is aware of recent liquidity issues, as well as a variety of concerns raised by the Yala community. Below is an updated status report addressing these: 1/ YU liquidity: Incident response & post mortem On September 14, 2025, an exploiter used temporary deployment keys to create an unauthorized cross-chain bridge and extracted 7.64M USDC (or ≈1,636 ETH at the time). While this briefly caused a YU depeg, no core protocol vulnerabilities were involved and all Bitcoin reserves remain safe. To stabilize the protocol and protect user funds, the team injected $5.5M of its own capital and sourced additional liquidity through Euler. As a result, YU fully recovered on September 23, 2025, and the Yala protocol resumed normal operations. 2/ Fund recovery On October 29, 2025, law enforcement in Bangkok apprehended the previously mentioned exploiter. Most of the impacted funds were recovered from the exploiter, though they remain under legal review. Some were converted to ETH prior to recovery with subsequent price declines - along with funds spent by the exploiter - reduced the effective recovery value. We will provide a more detailed update when permitted by ongoing legal processes. 3/ Liquidity impact Recent retail DeFi exodus has contributed to further panic and strained an already illiquid market, affecting Euler as well. As a result, some positions and liquidity previously used to stabilize YU are currently constrained. 4/ Community questions & clarifications Yala is not integrated with Kamino’s lending products, and the wallet below does not belong to Yala or associated team members. “AyCJS5t4kwRauXShpNygmUqhA2xzwjjVvafNTknNV41X” (holding over 30M USDC) 5/ Next steps The team is focused on protecting users and Yala’s long-term operational plan. We are assessing the capital needed to stabilize conditions and are working with law enforcement and funding partners to source it. Given tight liquidity across many protocols and assets, this process will take time. We aim to provide a clear plan by December 15, 2025, including recovery paths, and next operational steps. Thank you for your continued support. - Yala









