Neutrl has suspended contracts due to position issues affecting liquidity, planning to open redemptions in September

The Neutrl team stated that issues have been found with the positions held in the strategy, affecting the liquidity of part of the protocol's reserves. In the interest of users and after consulting legal advisors, the relevant smart contracts have been swiftly paused. This incident is not due to a smart contract vulnerability, hacking attack, or code defect.

The protocol currently holds approximately $27 million in available liquid assets and continues to hold other positions and related gains and losses in the strategy, which cannot be immediately liquidated. The team cannot confirm the timing, amount, or recovery value of these positions. Liquidation and recovery of the remaining positions will take a long time, and the recovery amount or timing cannot be confirmed at this moment.

In response to the liquidity needs of some users, Neutrl will open an early redemption mechanism for NUSD and sNUSD holders, which will be fairly treated for all holders based on legal advice. Complete details will be announced before the redemption begins, with a target for early September, depending on the deployment of the new redemption contract, independent audits, and legal financial reviews, and the timing may vary. The team advises against trading NUSD or sNUSD for the time being.