Neutrl Launches NUSD Redemption Portal With 0.51 Payout Rate

The redemption window, managed by Caverna Auctus Inc., opened on September 17 and is scheduled to run until November 14. To participate, users must connect their wallets and sign an on-chain message to verify ownership before the protocol burns the surrendered tokens in exchange for USDC. While Neutrl has not explicitly labeled the program as a 50% recovery, the contract value of 0.51 aligns with the payout expectations currently circulating among market participants.

This move follows an August reserve shortfall that forced the protocol to pause operations. At that time, Neutrl disclosed approximately $27 million in liquid assets, while other strategy positions—previously part of a reserve base that once exceeded $100 million—remained locked and illiquid. The protocol has maintained that the liquidity issue was not caused by a hack or a smart contract vulnerability, but rather by complications within its underlying investment strategy.

Structured products tied to the protocol face immediate consequences from this valuation. Strata, a yield protocol, noted that a 0.51 redemption rate effectively writes down its jrNUSD junior tranche to zero, with remaining value flowing to senior tranches. While CoinGecko displays a legacy NUSD price near $1, the token has seen no active trading on major exchanges for an extended period, rendering the tracker irrelevant to current exit values. Neutrl remains silent on whether future recoveries from its illiquid assets might provide additional compensation to users who accept the current terms.