# Stablecoin Protocol Breach Triggers 80 Percent Collapse in Value ▴ News

**Published:** 2025-09-14
**Categories:** News

---

The catastrophic de-pegging of the Yala Stablecoin (YU) illuminates a critical dependency within the decentralized finance architecture. The protocol, intended to serve as a stable unit of account, experienced a systemic failure originating from a direct attack vector. This event affects the entire stack of applications built upon it, transforming a foundational layer of trust into a source of systemic risk. The immediate consequence is the rapid, cascading liquidation of collateral and a terminal loss of confidence in the asset’s stabilization mechanism, rendering it ineffective for its core purpose of value preservation and exchange.

The event provides a precise case study in how protocol integrity functions as the ultimate guarantor of value in decentralized systems; its failure results in an immediate and systemic collapse of the asset’s utility.

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**Post-Attack Value** ▴ $0.20

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**Causal Event** ▴ Protocol Attack

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**Key Stakeholder** ▴ Polychain

Signal Acquired from ▴ <a href="https://cryptonews.com/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" target="_blank" rel="nofollow">cryptonews.com</a>

**Tags:** [De-Pegging Event](https://options.greeks.live/area/de-pegging-event/), [Oracle Manipulation](https://options.greeks.live/area/oracle-manipulation/), [Stablecoin Stability Module](https://options.greeks.live/area/stablecoin-stability-module/), [Contagion Risk](https://options.greeks.live/area/contagion-risk/), [Smart Contract Vulnerability](https://options.greeks.live/area/smart-contract-vulnerability/), [Collateral Liquidation](https://options.greeks.live/area/collateral-liquidation/)	

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---

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**Original URL:** https://options.greeks.live/news/stablecoin-protocol-breach-triggers-80-percent-collapse-in-value/
