Neutrl pauses NUSD redemptions over undisclosed reserve issue
BA Labs had previously classified a proposed NUSD integration as higher risk because of its counterparty, operational and liquidity exposure.
Decentralized finance (DeFi) protocol Neutrl has suspended minting and redemptions for its NUSD synthetic dollar after unspecified circumstances affected protocol reserves, leaving the cause and scale of any potential impairment unclear.
On Thursday, Neutrl said it had also paused other protocol functions on legal advice while it assesses the impact. The protocol did not identify the affected asset or counterparty, say whether reserves suffered a realized loss or provide a timeline for resuming operations.
Structured-yield protocol Strata later said it paused minting, redemptions and related functions for contracts in its Neutrl market, which supports several NUSD-linked products. Strata said its other markets remained operational.