According to ME News, on August 29 (UTC+8), the decentralized yield protocol Neutrl tweeted that its team identified an issue with a position in one of its strategies, impacting liquidity in part of the protocol’s reserves. Following consultation with legal counsel, the relevant smart contracts have been promptly paused. The protocol currently has approximately $27 million in available liquid assets, along with unrealized strategy positions and corresponding gains or losses. The timeline, amount, or recoverable value of these assets cannot currently be confirmed. In response to user demand for liquidity, Neutrl will open an early redemption mechanism for NUSD and sNUSD holders, stating it will treat all holders equally. The target is early September, subject to the deployment of new redemption contracts, independent audits, and legal and financial reviews—timelines may change. The team advises against trading NUSD or sNUSD during this evaluation period to avoid disrupting recovery arrangements. (Source: Foresight News)
Neutrl Pauses Smart Contracts After Strategy Position Affects Liquidity, Plans Early Redemption in Early September
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Summary
Neutrl paused its smart contracts after a strategy position disrupted liquidity zones, impacting protocol reserves. The team confirmed that $27 million in liquid assets remain, though recovery details are still unclear. To support users, Neutrl plans an early redemption for NUSD and sNUSD in early September, pending contract deployment and audits. Users are advised to avoid trading these tokens during the evaluation period. Value investing in crypto remains a key focus as the protocol works to restore stability.
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