Neutrl Suspends Smart Contract After Strategy Position Issue

Decentralized yield protocol Neutrl said it found an issue with one position in its strategy, affecting liquidity for part of the protocol's reserves. According to Foresight News, the team consulted legal counsel and quickly suspended the related smart contract. The protocol said it currently has about $27 million in liquid assets available, along with unliquidated strategy positions and related gains or losses. It said it cannot confirm the recovery timeline, amount, or recoverable value at this time. To address user liquidity needs, Neutrl will open an early redemption mechanism for NUSD and sNUSD holders and said it will treat all holders equally. The target is early September, depending on the deployment of a new redemption contract and the progress of independent audits and legal and financial reviews, and the schedule may change. The team advised against trading NUSD or sNUSD during the assessment period to avoid affecting recovery arrangements.