Neutrl Halts NUSD Minting and Redemptions Amid Reserve Disruption
The DeFi protocol Neutrl has halted minting and redemptions for its synthetic dollar, NUSD. This decision comes after unspecified circumstances affected the protocol's reserves, leaving the extent of any potential impairment unclear.
NUSD supply is roughly $53.6 million, with recent data showing an 18.4% decline in market capitalization over 30 days. However, this decline does not prove a direct link to the reserve issue.
Neutrl's suspension of NUSD minting and redemptions has also led Strata, a structured-yield protocol, to pause minting, redemptions, and related functions for contracts tied to the Neutrl market it uses to support several NUSD-linked products. However, Strata indicated that its other markets continued operating.