Warning: A Stablecoin Has Lost Its Peg to the Dollar – Here’s What You Need to Know

According to DEX Screener data, YU, the stablecoin of Yala, in which Polychain invested, lost its stable price as of 05:14 CET today.

The YU price fell to $0.2074 before rising to $0.923 and is currently trading at $0.70. The YU/USDC pool on Ethereum on Uniswap has only 1,450 USDC in liquidity.

The Yala team stated in a statement that the protocol had recently been subjected to an attempted attack. The company announced that it had identified the issue in collaboration with its security partner, SlowMist, and that necessary fixes were underway.

Chart showing the decline in the price of YU, which should be fixed at $1.

The following statements were made by Yala:

• “As part of system improvements, the Convert and Bridge functions will be temporarily unavailable. During this period, maintenance is being performed to ensure the protocol’s full stability.
• All other protocol functions are unaffected and user assets are safe.
• Our priority is to make the system more robust and increase stability. We will share additional updates once maintenance is complete.”

*This is not investment advice.

Source