Neutrl Pauses Contract Due to Position Issues Affecting Liquidity, Plans September Redemption

The Neutrl team stated that issues were discovered with positions held in the strategy, affecting the liquidity of part of the protocol's reserves. To protect user interests and after consulting legal counsel, the relevant smart contracts were promptly paused. This incident was not caused by a smart contract vulnerability, hacker attack, or code flaw. The protocol currently holds approximately $27 million in available liquid assets and continues to hold other positions in the strategy along with related profits and losses, which cannot be immediately liquidated at present. The team cannot confirm the timing, amount, or recovery of these positions. Closing and recovering the remaining positions will take considerable time, and the recovery amount or timeline cannot be confirmed at this time. In response to some users' liquidity needs, Neutrl will offer an early redemption mechanism for NUSD and sNUSD holders, treating all holders fairly as per legal advice. Full details will be announced before the redemption begins, targeting early September, subject to the deployment of the new redemption contract, independent audits, and legal and financial reviews. The team advises against trading NUSD or sNUSD for now.