Yala stablecoin YU shows suspicious activity similar to USDX

According to ChainCatcher, the DeFi community YAM posted on X stating that they have observed warning signs with the Yala stablecoin YU. An address closely related to Yala is borrowing the full amount of USDC and most of the YU funds from the Yala Frontier market on Euler. Despite persistently high interest rates, there has been no repayment activity.

Currently, the market's fund utilization rate has reached 100%, which means lenders are unable to withdraw any liquidity. The Euler team has also set the borrowing cap for the Yala market on Frontier to zero. Reportedly, the Yala team has not responded to either the Euler team or Discord community users. YAM further added that YU is still maintaining its peg on Solana, and there is still nearly one million USDC in its liquidity pool available for exit at the pegged price. This article is mainly a risk warning, and it is not yet certain whether Yala is truly in trouble.