Neutrl has opened a redemption portal offering NUSD and sNUSD holders an exit at 0.51 USDC per token, representing a 49% loss. The rate aligns with the $27 million in liquid reserves Neutrl disclosed following a mid-August strategy-position crisis. This valuation has severe downstream effects, completely wiping out Strata's junior tranche (jrNUSD) while senior holders absorb the remaining assets. Meanwhile, researchers warn that the redemption terms may contain a total liability waiver.
NUSD redemption portal launch
- ▪Neutrl opened a dedicated redemption portal on September 17, 2026, at 15:56:22 UTC, allowing NUSD and sNUSD holders to submit redemption requests.
- ▪The Neutrl redemption program, operated by Caverna Auctus Inc., is expected to remain open until November 14, 2026, and pays out in USD Coin (USDC).
August liquidity crisis
- ▪Neutrl's $27 million in liquid assets, disclosed on 28 August 2026, represented approximately 50.6% of NUSD's 53.39 million circulating supply listed on CoinGecko, closely matching the 0.51 redemption ratio
- ▪Neutrl paused minting, redemptions, and other protocol functions in mid-August 2026 due to a strategy-position issue disclosed in Neutrl's 28 August 2026 update, rather than a smart-contract exploit or hack
- ▪On August 28, 2026, Neutrl disclosed holding approximately $27 million in available liquid assets alongside additional strategy positions that were not presently liquid.
51-cent redemption rate
- ▪The Neutrl redemption contract at address 0xB3f07D3392102fC23264a78e2A1A8B6421123828 returns a redemption rate of 0.51 USDC per NUSD, representing a 49% shortfall.
- ▪Structured yield protocol Strata identified the 0.51 redemption rate directly from the contract's redemptionRate() function on September 17, 2026, at 20:12:42 UTC.
Strata junior tranche wipeout
- ▪Following the update, Strata's senior tranche (srNUSD) absorbs the remaining value, with withdrawals settling in sNUSD at a revised contract accounting value of 1.23971.
- ▪At the 0.51 NUSD reference value, Strata scheduled a 48-hour valuation update to write Strata's junior tranche (jrNUSD) down to zero
- ▪Strata's scheduling transaction was confirmed on Ethereum at 6:48 p.m. UTC on September 17, 2026, with a 172,800-second delay, preventing execution before September 19, 2026.
Legal waiver concerns
- ▪OAK Research raised legal concerns that accepting Neutrl's redemption terms for the portal opened on 17 September 2026 requires users to waive recourse against Neutrl across all their tokens, even for partial redemptions
- ▪Neutrl's public announcement did not describe the on-chain wallet verification message required by Neutrl's redemption portal as a liability waiver, and Neutrl's redemption portal was region-blocked during independent review
Phishing domain risks
- ▪Neutrl warned token holders to rely only on official social accounts and the official Neutrl Redemption Portal URL launched on 17 September 2026 to avoid phishing risks and look-alike domains
- ▪Security observers advise holders to independently verify domain details and contract addresses before signing on-chain messages or initiating transactions.
Story comments
Loading comments…