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.

A CryptoComLearn roundup lists eight DeFi stablecoin yield strategies across Pendle, Morpho, KiloEx and Ostium, with returns ranging from 9.17% to 49.20% APY. The article also highlights liquidation, smart contract and counterparty risks.