Lulo expects its Boost deposits to decline about 6.4% from exposure to Neutrl Finance, placing the loss on depositors who receive extra yield for covering the platform’s Protected tier.
Lulo said the exposure had not reduced principal in its Protected deposits. Under Lulo’s product structure, Boost depositors receive additional yield for absorbing losses tied to covered protocols. The platform lists Neutrl among the protocols where it places funds.
Neutrl said a strategy position had impaired liquidity in part of its reserves. It said the problem was unrelated to a hack or smart contract flaw.
Neutrl has opened redemptions for holders of its synthetic dollar, NUSD. Strata said it read a rate of 0.51 from Neutrl’s redemption contract, implying about $0.51 in USD Coin (USDC) for each NUSD redeemed. Neutrl described the rate as fixed and based on disclosed reserves.
The figures measure different positions: Strata’s contract reading concerns the redemption value of NUSD, while Lulo’s 6.4% estimate concerns the expected decline across Boost deposits.
