# Bitcoin-Collateralized Stablecoin Depegs after Protocol Attack ▴ News

**Published:** 2025-09-15
**Categories:** News

---

The de-pegging of the Yala YU stablecoin, a Bitcoin-collateralized instrument, signals a critical vulnerability in the system’s architecture. An attempted protocol attack was the catalyst, forcing the asset’s value to a fraction of its intended $1 peg. This event directly impacts the perceived reliability of asset-backed stablecoins, a foundational component of decentralized finance infrastructure.

The immediate consequence is a systemic repricing of risk for similar instruments and a flight to quality, potentially increasing the demand for more robustly collateralized or algorithmically stabilized assets. This incident underscores the necessity of rigorous, multi-layered security protocols and transparent, real-time collateral auditing to maintain market confidence and system integrity.

The protocol failure and subsequent de-pegging of a Bitcoin-backed stablecoin highlight the inherent structural risks and the paramount importance of security in the decentralized financial system.

- 
**Asset Value Collapse** ▴ The YU stablecoin dropped to $0.2046 from its $1 peg.

- 
**Catalyst Event** ▴ An attempted protocol attack triggered the de-peg.

- 
**Underlying Collateral** ▴ The stablecoin was collateralized by Bitcoin.

Signal Acquired from ▴ <a href="https://cointelegraph.com/news/yala-yu-stablecoin-fails-to-restore-peg-after-attempted-attack?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" target="_blank" rel="nofollow">cointelegraph.com</a>

**Tags:** [Liquidity Crisis](https://options.greeks.live/area/liquidity-crisis/), [Market Stability](https://options.greeks.live/area/market-stability/), [Decentralized Finance](https://options.greeks.live/area/decentralized-finance/), [Depeg](https://options.greeks.live/area/depeg/), [Risk Management](https://options.greeks.live/area/risk-management/), [On-Chain Security](https://options.greeks.live/area/on-chain-security/)	

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---

**Original URL:** https://options.greeks.live/news/bitcoin-collateralized-stablecoin-depegs-after-protocol-attack/
