Neutrl launches NUSD and sNUSD redemption program with 0.51 payout rate

Neutrl announced an early redemption program on September 17 that lets holders of NUSD and its staked variant sNUSD exchange their tokens for USDC. The program addresses a liquidity shortfall that halted normal operations in August.

Redemption mechanics and rate

Eligible users can connect their wallet to a dedicated portal, sign an on‑chain message to prove ownership, and submit a redemption request. Upon completion, the protocol burns the surrendered NUSD or sNUSD and transfers USDC to the user.

On‑chain analysis by Strata identified a redemptionRate() value of 0.51 (510000000000000000), indicating that each NUSD or sNUSD will be redeemed for roughly 51 % of its $1 reference value. The redemption contract is located at 0xB3f07D3392102fC23264a78e2A1A8B6421123828.

Liquidity context

Neutrl disclosed approximately $27 million in liquid assets at the time of the program launch. Earlier in the year, the protocol reported higher reserve figures (around $91 million in June and up to $137 million in earlier snapshots), but those amounts preceded the August liquidity issue.

The reserve problem stemmed from a strategy position that reduced the liquidity of part of the protocol’s assets. Neutrl clarified that the issue was not caused by a smart‑contract exploit, hack, or code vulnerability.

Program timeline and terms

The redemption window is slated to remain open until November 14, 2026, subject to the program’s terms. Neutrl has not publicly confirmed a requirement for a liability waiver, though some community posts have claimed such a condition.

Redemptions are processed on a fixed rate based on the disclosed liquid reserves. The protocol cautions users to access only the official redemption URL to avoid phishing or malicious sites.

Impact on structured products

Structured‑product protocol Strata reported that the 0.51 valuation writes down its junior tranche (jrNUSD) to zero, with any remaining value flowing to the senior tranche (srNUSD) according to its loss waterfall.

Supply and market data

NUSD circulation has contracted sharply, falling from roughly $226 million in February to about $53.6 million in August. CoinGecko currently lists around 53.39 million NUSD in circulation with a reference price near $0.9983, but notes that the token no longer trades on tracked exchanges, so the price does not reflect an active market.