In a post published on its official X account on August 29, decentralized yield protocol Neutrl said that a problem with a position in its strategy had affected the liquidity of part of its reserves. The team said it had quickly suspended the relevant smart contracts after consulting legal counsel. According to the protocol, it currently has approximately $27 million in liquid assets that are available, in addition to unrealized strategy positions and the related profits or losses. Neutrl said it is unable to confirm at this stage the recovery time, the amount that could be recovered, or the recoverable value. In order to respond to users' demand for liquidity, Neutrl said it will open an early redemption mechanism for holders of NUSD and sNUSD, and it will treat all holders equally. The target is early September, though the timeline could shift depending on the deployment of the new redemption contract, independent audits, and legal and financial reviews. The team also advised users not to trade NUSD or sNUSD during the assessment period, so as to avoid affecting the recovery arrangements.
Neutrl, a decentralized yield protocol, said on X that a problem with one of its strategy positions affected liquidity for part of its reserves. After consulting legal counsel, the team paused the relevant smart contracts.
The protocol now holds roughly $27 million in liquid assets that can be deployed, plus unrealized strategy positions and the associated profit or loss. Neutrl said it cannot yet confirm the recovery time, the amount to be recovered, or the recoverable value.
To address user demand for liquidity, Neutrl will open an early redemption mechanism for NUSD and sNUSD holders. The protocol said it will treat all holders equally. The target is early September, but the timeline may change depending on the deployment of new redemption contracts, independent audits, and legal and financial reviews.
Neutrl also advised users not to trade NUSD or sNUSD during the assessment period, to avoid affecting the recovery arrangements.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
