Yala Monthly Update: September

September has been a month of growth, resilience and innovation for Yala. From deepening system partnerships to navigating security challenges with transparency, Yala emerged stronger, proving our commitment to security, stability and community trust.

September at a Glance

• Full Recovery Achieved → $YU liquidity restored within 10 days of the September 14 incident; all unauthorized tokens burned.
• Season 2 Extension → Snapshot window extended to December 8, with rewards allocation doubled to 5%.
• Double Berries Loyalty Program → 2x rewards for users who stood with us during recovery
• Security Infrastructure Overhaul → Real-time monitoring, multi-party controls, continuous audits now define Yala’s operating standard
• Ecosystem Expansion → Circle Alliance membership, boosted DeFi incentives, and deeper Base integrations.
• Community Presence  → Spotlight at BTCON Seoul, Plume Partner Series and more

Recovering from September 14th Incident

On September 14th, Yala faced a sophisticated attack that temporarily impacted $YU liquidity. Wihtin hours, we paused Convert and Bridge functions to prevent further loss, engaged leading security partners (Slowmist, Fuzzland, Cubist) and published a transparent post-mortem report within 72 hours.

By September 23rd, recovery was complete:

• $YU liquidity and peg restored.
• All 30,000,000 illegitimately minted $YU have been burned.
• Every user can swap $YU for USDC at a 1:1 ratio via Convert.
• Bridge operations between Ethereum and Solana are back to normal, with all previously stuck transactions retried and completed.
• The Yala protocol is fully operational, with no system risks. 

To strengthen long-term resilience, we implemented key measures outlined in the Post Mortem:

• Cubist key management integration for stronger multisig protections.
• Real-time monitoring via an in-house Grafana dashboard.
• Quarterly external audits beginning Q4 2025, with Fuzzland already engaged.

All Bitcoin reserves remained fully secure throughout. Every user was protected, every loss restored. Transparency remains our guiding principle. You can follow ongoing disclosures on our Transparency Page.

Rewarding Community Loyalty

Actions speak louder than words. To honor the community that stood by us, we introduced enhanced rewards to recognize loyalty and long-term commitment.

Season 2 Extension

The Season 2 snapshot window has been extended until December 8, giving the community more time to participate and qualify. To further strengthen engagement, the airdrop allocation was doubled from 2.5% to 5%, ensuring greater rewards for all active users.

Double Berries Loyalty Program

As a direct thank-you to those who maintained positions and continued earning during the recovery, we launched the Double Berries Loyalty Program. Eligible users will automatically receive 2× Berry rewards across all chains through December 8.

Enhanced Ecosystem Rewards

To keep yields attractive and participation strong, incentives across Pendle, Euler, and Kamino were also boosted in September. These enhancements ensured that, even through recovery, users benefited from competitive returns (peaked at over 89% APR) and deeper ecosystem rewards.

Ecosystem & Adoption Expansion

Yala’s ecosystem continues to grow through strategic partnerships and technological innovation, bringing more opportunities and value to our community.

• Deeper Base Chain Integration: Building on our successful Pendle integration on Base in August, we expanded our partnerships with Equilibria and Penpie, providing users with multiple yield optimization pathways within the Pendle ecosystem and unlocking diverse earning opportunities for the Yala community on Base.
• AI-Powered Yield Optimization: Yay-Agent, our AI-powered yield strategist, has now extended from Ethereum to Base. Operating as a 24/7 market analyst, Yay-Agent continuously scans protocols to identify the most lucrative $YU yield opportunities while automatically balancing risk and reward, helping users capture smarter, safer yields.
• Circle Alliance Program Recognition: Yala was officially welcomed into the Circle Alliance Program, a global network of builders advancing stablecoin innovation. This recognition highlights our innovative approach to Bitcoin utility and positions Yala among the leading protocols driving institutional adoption of Bitcoin-backed DeFi solutions.

Protocol Developments

Alongside September’s challenges, Yala also achieved several major development milestones that strengthen our infrastructure and expand cross-chain capabilities.

• Recovery from September 14th Incident: Yala successfully executed a comprehensive recovery process by burning the unauthorized YU tokens and restoring liquidity across affected pools. This action not only safeguarded user funds but also reinforced the integrity of the protocol, demonstrating Yala's commitment to security and operational resilience.
• Double Berries for Post-Recovery Loyalty Program: Our technical team deployed an enhanced system to power the Double Berries Loyalty Program, rewarding users who remained active during recovery. This automated mechanism identifies eligible users across Base, Solana, Ethereum, and BNB Chain, granting 2× Berry rewards through December 8. It reinforces trust while incentivizing long-term engagement in our multi-chain ecosystem.
• Points System Development for Near Integration: Yala's existing points system, which currently serves Ethereum, BNB Chain, Solana, and Base networks, has been extended to integrate with NEAR, primarily supporting the Rhea protocol. This upgrade allows NEAR users to seamlessly earn, track, and redeem points, strengthening cross-chain loyalty and deepening community participation.
• Global PSM Development Completion: Development of the Global Protocol Stability Mechanism (PSM) has been finalized. Designed to enable flexible liquidity allocation across multiple chains, the system is now prepared for external audit. Once approved, the PSM will optimize capital deployment and enhance Yala’s infrastructure for advanced multi-chain yield strategies.

Community Momentum

This month, Yala’s community engagement reached new heights through partnerships, education, and active participation in global conferences.

Plume Network Feature Spotlight

Yala was featured in the Plume Partner Series, showcasing how $YU transforms Bitcoin into a productive asset and unlocks BTC liquidity through a secure, BTC-backed stablecoin.

Yield Madness Recap

We hosted Pendle in our Yield Madness series, where experts shared insights on yield tokenization, the trade-offs between fixed and variable yields, and Pendle’s role in scaling yield opportunities across DeFi.

Events, events, events...

BTCON Seoul → Our team engaged directly with the Bitcoin community, offering refreshments and conversations. 

On stage, @KT highlighted our vision: “Bitcoin liquidity is underestimated in DeFi. To unlock its potential, we’ve built three modes for institutions and retail users alike.”

Incentives & Rewards

Community incentives remain a cornerstone of Yala’s growth strategy. In September, we boosted rewards to empower participants, deepen engagement, and sustain strong liquidity across Ethereum and Base.

Start earning with competitive APRs today: app.yala.org/defi-marketplace

What's Next: October & Beyond

September tested Yala’s resilience, and we proved our ability to protect users, recover quickly, and rebuild stronger. What began as a challenge has now become the foundation of a more secure, transparent, and scalable protocol.

Looking forward, October will mark a new phase: the launch of the Global PSM, deeper DeFi integrations, and the continued expansion of $YU utility across ecosystems.

• Strategic DeFi Partnership: We are accelerating collaborations with tier-1 validators and leading DeFi protocols to expand $YU’s utility. These alliances will unlock new yield opportunities, deepen liquidity, and give users access to premium DeFi strategies previously unavailable to Bitcoin holders.
• Global PSM Launch: Following comprehensive security audits, the Global Protocol Stability Mechanism launches in October, enabling dynamic multi-chain liquidity allocation and optimized capital efficiency. This breakthrough infrastructure will allow users to seamlessly move liquidity where yields are highest, automatically balancing risk and reward across our entire ecosystem.

With industry-leading security, strengthened community loyalty, and an expanding ecosystem, Yala is entering October with momentum.

Join the Yala Community

Yala is a native Bitcoin liquidity protocol that channels BTC into yield opportunities across DeFi and RWAs. 

Bitcoin holders unlock capital through self-custodial, liquidation-free borrowing by minting $YU, a BTC-backed liquidity asset. In this process, they pay a stability fee directly to $YU depositors, effectively exchanging BTC-backed exposure for portable, capital-efficient liquidity and access to yield without giving up ownership.

Yala’s SmartVault module manages system risk and ensures efficient yield distribution.

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