YU, a Bitcoin-backed stablecoin from issuer Yala, depegged following a security breach on Saturday night.
An attacker minted 120 million YU on the Polygon network without authorization, then bridged the fake stablecoins to other chains to exchange for real assets.
The Yala team pledged to replenish all drained pools and called the situation “fully contained.”
Yala’s stablecoin bounced between $0.70 and $0.95 on Sunday, but has not yet held its $1 peg.