Yala Stablecoin YU Faces Liquidity Crisis as Borrower Defaults on High-Rate USDC Loans

An address closely linked to Yala has fully borrowed USDC and most YU funds from the Yala Frontier market on Euler while maintaining outstanding debt despite persistently high interest rates, DeFi community YAM reported on November 15. The market utilization rate has reached 100%, preventing lenders from withdrawing any liquidity, and Euler has set the borrowing cap for Yala markets on Frontier to zero. YAM noted that YU maintains its peg on Solana with nearly $1 million USDC available in liquidity pools for exits at the pegged rate, emphasizing the post serves as a risk alert rather than confirmation of Yala's financial distress.