Stablecoin provider Yala addressed a liquidity crisis following a depeg event for its USD-backed stablecoin, YU. On September 14th, 2025, a hack resulted in a loss of $7.64 million USDC (equivalent to approximately 1,636 ETH at the time). This incident temporarily triggered a depegging of YU but did not compromise the protocol’s core functionality. The team intervened with $5.5 million to stabilize the situation, and YU regained its peg, allowing operations to resume. While criminal proceedings are underway, the hacker’s recovery process is still in judicial review. Recent withdrawal patterns from the DeFi market have further exacerbated liquidity pressures affecting Euler, a previous supporter of YU’s stability. This has restricted specific positions and liquidity used for YU. 7.64 million USDC lost to hackers, most recovered but not yet fully usable. Yala clarified it hasn’t integrated with Kamino’s lending products, and the AyCJ wallet does not belong to Yala or its members. The team is actively seeking funding to stabilize the market and collaborate with law enforcement and financial partners for securing financing. A comprehensive plan detailing recovery steps and future operational strategies will be shared by December 15th, 2025. This process will require time due to existing liquidity constraints across multiple protocols and assets. #ETH #USDC