Hack Crypto: This stablecoin drops to 0.20 cents
Stablecoins are, as the name suggests, cryptocurrencies to maintain their parity with the dollar. But one of them experienced a new critical incident. The Yala protocol, which radiates Stablecoin called Yu, was last Sunday the goal of an “attempt to attack” and caused a spectacular decrease in its value. His stablecoin, Yu, lost anchored to the dollar and threw himself at a lower $ 0.20.
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- Stablecoin Yu, published by Yala, suffered a dramatic decline in his value after an attempt to attack.
- The attacker managed to fraud 120 million yu without the deposit of bitcoins, which seriously disrupted the market.
What is yu, this stabnecoin is based on bitcoins?
It is a stabnecoin that is designed to have exactly that value 1 dollar. To guarantee this value, the Yala protocol requires users to insert Bitcoin As a warranty (or “collateral”).
If you want to create a simple analogy: YU is like a bank note that is guaranteed by a gold reserve. The ticket is not gold, but its value is based on trust, which can be replaced at any time with its value of gold. In the case of YU, users are able to convert it to bitcoins.
The incident that caused Yu to lose anchoring to the dollar is therefore not associated with a fall in the price of bitcoins, but with the defect of the protocol itself.
“Our protocol has recently undergone an attempt at an attack that briefly influenced the YU pin. Thanks to rapid collaboration with Slowmist_team and our security partners we have identified this problem and have already enhanced the system. All user assets remain safe.
Source: x
An attack that created tokens without collateral
The Yala team confirmed the incident, although it did not specify whether it is a successful hack or a simple attempt. The attacker managed to use the vulnerability of “sleep” (create) 120 million yu tokens in the network of polygon, Without having to store the corresponding bitcoins in the warranty.
This fraudulent creature had a catastrophic effect : I do the market tokens that had no real value, the attacker interrupted the anchoring mechanism. The market quickly lost confidence and the price of yu collapsed, dropped from $ 1 only to 0.2046 $.
To stop the problem, he deactivated his conversion and “bridge” function (bridge between the blockchains). In collaboration with Slowmist, the team wanted to quickly reassure their community and claimed that all bitcoin funds stored legally in the collateral were safe and were not lost.
Attacker’s operating mode
According to data from on-Strouw Lookonchain Analysis Company, the attacker transferred part of these funds either 7.71 million yuon the Ethereum and Solana networks where he sold them for approximately 7.7 million USDC.
The hacker then converted these USDC to 1,501 ETH, which dispersed on several addresses of wallets to blur the tracks. According to Lookonchain, the attacker still has 22.29 million yu The Ethereum and Solan and the 90 million YU reserve are still present in the polygon network.
The Stablecoins market before its challenges
After massive sale, YU was briefly re -assembled by up to $ 0.917 before it descended below $ 0.80 without being able to regain its anchoring in the dollar. Currently, around $ 0.66 is negotiated when writing this article.
Although the market Stablecoins weighs hundreds of billions of dollarsPredominantly transmitted leaders as USDT and USDC, Yala’s incident reminds of the vulnerability that remains. For a market whose growth is based on trust and stability, these “delegs” are hard strokes that emphasize the importance of protocol security. Even stablecoin is based on an asset, just as Bitcoin is not immune if your own system errors are used.
(Tagstotranslate) blockchain