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[Yala Responds to Stablecoin YU Community Concerns, Actively Investigating the Situation] On November 16, the stablecoin protocol Yala stated that it has taken note of the community's concerns regarding the stablecoin YU and is actively investigating the matter, promising to release further updates. The DeFi community YAM pointed out that Yala's stablecoin YU is exhibiting suspicious behavior similar to USDX, with related addresses lending out USDC at high interest rates but failing to repay. An address closely associated with Yala borrowed the full amount of USDC and most of the YU funds from Euler's Yala Frontier market. Despite the high interest rates, no repayments have been made, resulting in a 100% utilization rate of market funds, leaving lenders unable to withdraw liquidity. The Euler team has since set the borrowing cap for this market to zero. YAM added that the peg on YAmericaolana is currently being maintained, with nearly $1 million USDC in its liquidity pool available for exit at the pegged price. However, it remains uncertain whether Yala is in financial distress.

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